Production Technologies in Stochastic Continuous Time Models
CESifo, Munich, 2009
CESifo Working Paper No. 2831
![](https://cesifo.org/DocImg/cesifo1_wp2831.jpg?c=1689236952)
Properties of dynamic stochastic general equilibrium models can be revealed by either using numerical solutions or qualitative analysis. Very precise and intuition-building results are obtained by working with models which provide closed-form solutions. Closed-form solutions are known for a large class of models some of which, however, have some undesirable features. This paper offers closed-form solutions for models which are just as tractable but do not suffer from these shortcomings.
Fiscal Policy, Macroeconomics and Growth