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dc.contributor.authorCampbell, John
dc.date.accessioned2009-07-22T14:18:18Z
dc.date.issued1994
dc.identifier.citationCampbell, John Y. 1994. Inspecting the Mechanism: An Analytical Approach to the Stochastic Growth Model. Journal of Monetary Economics 33, no. 3: 463-506.en
dc.identifier.issn0304-3932en
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:3196342
dc.description.abstractThis paper argues that a clear understanding of the stochastic growth model can best be achieved by working out an approximate analytical solution. The proposed solution method replaces the true budget constraints and Euler equations of economic agents with loglinear approximations. The model then becomes a system of loglinear expectational difference equations, which can be solved by the method of undetermined coefficients. The paper uses this technique to study shocks to techno- logy and shocks to government spending financed by lump-sum or distortionary taxation. It emphasizes that the persistence of shocks is an important determinant of their macroeconomic effects.en
dc.description.sponsorshipEconomicsen
dc.language.isoen_USen
dc.publisherElsevieren
dc.relation.isversionofhttp://dx.doi.org/10.1016/0304-3932(94)90040-Xen
dash.licenseLAA
dc.subjectstochastic growth modelen
dc.subjectanalytical solutionen
dc.subjectloglinear approximationen
dc.titleInspecting the Mechanism: An Analytical Approach to the Stochastic Growth Modelen
dc.relation.journalJournal of Monetary Economicsen
dash.depositing.authorCampbell, John
dc.identifier.doi10.1016/0304-3932(94)90040-X*
dash.contributor.affiliatedCampbell, John


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