5 papers · 1 filter
An Arbitrarily Precise Global Closed Form Approximation for the Neoclassical Growth Model
Jordan Roulleau-Pasdeloup
I consider a neoclassical growth model with a constant absolute risk aversion (CARA) utility function and derive a global closed form approximation that is arbitrarily precise as t…
A Step Towards a Solution to the Confidence-Driven Liquidity Trap Morass
Haochun Ma, Jordan Roulleau-Pasdeloup
Depending on the persistence of a one-off shock bringing the economy to the Effective Lower Bound (ELB), the standard New Keynesian model predicts starkly different conclusions. We…
Endogenous Persistence at the Effective Lower Bound
Chunbing Cai, Jordan Roulleau-Pasdeloup, Zhongxi Zheng
We develop a perfect foresight method to solve models with an interest rate lower bound constraint that nests OccBin/DynareOBC and \cite{Eggertsson2010}'s as well as \cite{Mertens2…
Simple Analytics of the Government Investment Multiplier
Chunbing Cai, Jordan Roulleau-Pasdeloup
What are the effects of investing in public infrastructure? We answer this question with a New Keynesian model. We recast the model as a Markov chain and develop a general solution…
Analyzing Linear DSGE models: the Method of Undetermined Markov States
Jordan Roulleau-Pasdeloup
I show that a class of Linear DSGE models with one endogenous state variable can be represented as a three-state Markov chain. I develop a new analytical solution method based on t…