WebTo understand how our approach works, it is useful to recall the conditions for determinacy as stated by Blanchard and Kahn (1980). Indeterminacy arises when the parameter … WebMay 18, 2024 · The BK conditions are about the interplay between the number predetermined variables and stable eigenvalues. Your timing of variables in the two files …
Divergence of a variable in forward-looking models. Blanchard …
WebBlanchard and Kahn (1980) showed that a LRE model can be written as a linear combination of backward-looking and forward-looking solutions. Since then, a number of alternative approaches for solving linear rational expecta-tions models have emerged (King and Watson, 1998; Klein, 2000; Uhlig, 1999; Sims, 2001). WebJul 1, 2016 · The class SimpleRBC, below, implements the log-linearization step in the log_linearize method and the Blanchard-Kahn solution in the solve method. The params vector for that class is the vector of structural parameters: introducing stem in primary schools
A Generalized Approach to Indeterminacy in Linear Rational
WebMay 4, 2013 · Blanchard Kahn condition Thread starter Charlotte87; Start date May 4, 2013; May 4, 2013 #1 Charlotte87. 21 0. Homework Statement I have understood the point with the Blanchard Kahn condition, my problem is to find the explicit solution when I know there exists one unique solution to the problem. The problem comes from a DSGE model. WebIn these both situations the coefficients of the linear approximation of the model are constant and we can apply Blanchard and Kahn's results. The eigenvalues of the second linear approximation are equal to times those of the first. If the Blanchard and Kahn's conditions are satisfied for the model written in reduced variables and in the ... WebLog-linearization strategy • Example #1: A Simple RBC Model. – Define a Model ‘Solution’ – Motivate the Need to Somehow Approximate Model Solutions – Describe Basic Idea Behind Log Linear Approximations – Some Strange Examples to be Prepared For ‘Blanchard-Kahn conditions not satisfied’ • Example #2: Bringing in uncertainty. • … new movies on moviebox