Solution of continuous-time dynamic models with inequality constraints

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 119
Issue: 3
Pages: 299-301

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I propose a simple method to compute the transition process in continuous-time dynamic equilibrium models with occasionally binding inequality constraints. By augmenting the dynamic system with an auxiliary variable standard algorithms are able to solve the extended dynamic system taking the inequality into account. The procedure can handle any sequence of regimes with binding and non-binding constraints and determines the exact pattern of regimes endogenously.

Technical Details

RePEc Handle
repec:eee:ecolet:v:119:y:2013:i:3:p:299-301
Journal Field
General
Author Count
1
Added to Database
2026-01-29