We incorporate forward?looking capital accumulation into a dynamic discrete choice model of migration. characterize the steady?state equilibrium; generalize existing exact?hat algebra techniques to investment; and linearize provide an analytical characterization economy's transition path using spectral analysis. show that labor dynamics interact shape speed adjustment toward steady state. imple...

This paper develops theoretical foundations for the computation of competitive equilibria in dynamic stochastic general equilibrium models with heterogeneous agents and incomplete financial markets. While there are several algorithms which compute prices and allocations for which agents’ first order conditions are approximately satisfied (‘approximate equilibria’), there are few results on how ...

The countercyclical monetary policy is a policy that economists recommend to adopt in order to slow down the economic fluctuations. The aim of this study is to address the question that, in the presence of fiscal dominance and considering institutional quality (IQL), what the optimal monetary policy should be during the business cycles? To find the appropriate answer, first, in the framework of...

In this paper I propose an alternative to calibration of linearized singular dynamic stochastic general equilibrium models. Given an a-theoretical econometric model as a representative of the data generating process, I will construct an information measure which compares the conditional distribution of the econometric model variables with the corresponding singular conditional distribution of t...

In this paper we propose a composite Variational Inequality formulation for modeling multimode, multi-class stochastic dynamic user equilibrium problem in recurrent congestion networks with queues. The modes typically refer to different vehicle types such as passenger cars, trucks, and buses sharing the same road space. Each vehicle type has its own characteristics, such as free flow speed, veh...

Tax rates have fluctuated considerably since federal income taxes were introduced in the U.S. in 1913. This paper analyzes the effects of stochastic taxation on asset prices in a dynamic general equilibrium model. Stochastic taxation affects the after-tax returns of both risky and safe assets. Whenever taxes change, bond and equity prices adjust to clear the asset markets. These price adjustmen...