EconPapers    
Economics at your fingertips  
 

Solving the new Keynesian model in continuous time

Olaf Posch (), Juan F Rubio-Ramirez () and Jesus Fernandez-Villaverde ()

No 829, 2011 Meeting Papers from Society for Economic Dynamics

Abstract: We show how to formulate and solve the new Keynesian model in continuous time. In our economy, monopolistic firms engage in infrequent price setting á la Calvo. We introduce shocks for preferences, total factor productivity and government expenditure, and then show how the equilibrium system can be written in terms of 8 state variables. Our nonlinear and global numerical solution technique uses the collocation method based on Chebychev polynomials directly computing the continuous-time Bellman equation.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
https://economicdynamics.org/meetpapers/2011/paper_829.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed011:829

Access Statistics for this paper

More papers in 2011 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2023-01-31
Handle: RePEc:red:sed011:829