The Stochastic Growth Model

Authors: Koen Vermeylen
ISBN-10: 8776812138
ISBN-13: 9788776812133
Keywords: model, growth, stochastic
Formats: Read Online And/Or Other Formats
Copyrights: General Copyright

The Stochastic Growth Model
by Koen Vermeylen

Publisher: BookBoon 2010
ISBN/ASIN: 8776812138
Number of pages: 32

This text presents the stochastic growth model. The stochastic growth model is a stochastic version of the neoclassical growth model with microfoundations, and provides the backbone of a lot of macroeconomic models that are used in modern macroeconomic research. The most popular way to solve the stochastic growth model, is to linearize the model around a steady state, and to solve the linearized model with the method of undetermined coefficients.

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