noterbc (w/ matlab exercise)

120
1 b 1 09 1V1e fluc':\uo.tioYls tltlo.t [Vl reed output & ptvlploYtvleVl.t 1t qV<Q'IrefS ,6 fY-o /VI peav... -." Pectl< in veal GDP (Anti \ tVO\,f4k +0 1CJL/-g:4 2 -1.1- 0/ 0 1C15?J 2. .3 - 2.1"0'/0 1Q5'7: '6 1- - 3.1- 11 /0 1'1bo: 1 .3 - 1. b fI/ p 1Q-=J-O: 3 1 -1.1 ·t ,)Cl1-'> 4 5 - 3.'+ ./, If you. wav,t cfo.+o. '''loY€, '200t}_ ill.l. v fS 4b 4' 't1J"dev-s Y-t; =: C t -+ It + Got + (X t - dtttt... (i) A) Ou.tplA.t IS distviblAted gylVlMetvicodl'l o.vouvlOL_ its MeCw) , IolA+ 'd- to be loy (elat;ve1v IOVlg peviods it £Above Hs usucJ.. 'lntevupted by bvief peYiOcl5 WAeVl it is few 'oe-lov\J, MeaVl oeviatioV\ y 0.0003\ 0.034-5 C o.001tJ. b 0.0201 r 0.00163 O.O(,&'O G -O.OODbS O. X-1M -0 o.085:t

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Page 1: NoteRBC (w/ MATLAB exercise)

1 b 1 09

~ 1V1e (ec(,.tYYin~ fluc':\uo.tioYls tltlo.t occ~( [Vl reed output & ptvlploYtvleVl.t

1t o~ qV<Q'IrefS ,6 fY-o /VI peav... -."

Pectl< in veal GDP (Anti \ tVO\,f4k +0 trou~lt\

1CJL/-g:4 2 -1.1- 0/0

1C15?J ~ 2. .3 - 2.1"0'/0

1Q5'7: '6 1- - 3.1- 11/0

1'1bo: 1 .3 - 1. b fI/p

1Q-=J-O: 3 1 -1.1 ·t

,)Cl1-'> ~ 4 5 - 3.'+ ./, If you. wav,t cfo.+o. '''loY€,

f(e((v~lI\..tll.( '200t}_

ill.l. vfS4b

4' 't1J"dev-sY-t; =: Ct -+ It + Got + (X t - 1fv1~) ~ dtttt...

(i) g~Ii2d ~+s

A) Ou.tplA.t Gtow~

~ IS distviblAted vou~\t\\y gylVlMetvicodl'l o.vouvlOL_ its MeCw) ,

IolA+ 'd- ~eerv\S to be CV\cn'~acte"izect loy (elat;ve1v IOVlg peviods Vt-I.t1~Vl it £li~ltttL~

£Above Hs usucJ.. po.t~, 'lntevupted by bvief peYiOcl5 WAeVl it is Yelariv€-l~

few 'oe-lov\J,

gton~(ol

MeaVl oeviatioV\

y 0.0003\ 0.034-5

C o.001tJ. b 0.0201

r 0.00163 O.O(,&'O

G -O.OODbS O. Oqb~

X-1M -0 .oo·,r~~ o.085:t

Vaio
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Text Box
Ch.1 : Introduction to RBC
Vaio
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Page 2: NoteRBC (w/ MATLAB exercise)

2

g) wah'as ittr'\ t-AOdlll

1) &ot1tt outplAt ttll\cL input (Vl~d'\ets C\ft. competihve.. MO!'kets.

it,) No extevvlOJities

~ \AJ\tW>ut ~\t\ocks G) ti1e eco v\O(V\'y' in tkt. R01V1fey (VI0cle,l. eo'flver~eg TO

(). 'BoJaVlcecl Gtowt!A. Po.th, a\l1ci t~eV1 grv'WS $rvtooth''f' ( COYlsta Vlt growth ro-\'e)

t:xteV1ct the, CVloV\-~roclAastjc) f2..OtMsey Mode\ to \YlCOV-POyoJe- S,~oCKS to

prvcl~ teGVlrJ olo9 'I

-+----------'"1> t

c) ShockS

1) Tec.hVlo109Y Snoc,ks

to<',c....) -::: /A)K-oc LaO \ ./

'}A ~ -r€GIA. g~o~

€t· &lYlplAtevg I t<o~ots altev procP' process ~ f PfoclutHviftt·

2.) Wea~eV" SnoCkS L NattAyc:U. Oisasi"er'"oS

€.-f Agvicu.\h)Ye c... tvUvlSM '\rletu'sttle.S dGpevui on weatV1e~

~;'. ~ weo.thev IS 0. potential £o(,{ret of f'tuciuQ hoV).

Page 3: NoteRBC (w/ MATLAB exercise)

1) Mone-tdr\1 g\1o~ks

~. MOVleV gupply g,. :rVlr~vest (2(Ate, . ~-,·effec,tinfltthOV1

4) Po\iticoJ. ~hockS

e.l. FaSnioVl ~ Fads

-ItJ sp€tilol info 0) Pcopa9a.+iOYl Ma.(,V\at1i~M

(JorJ. ~ M~ch().YlI~Mg thClt otvlp\if'l S'~oCk$ g propa9ate tV1(OlAg1A tiMe.

1) IVl+eV'"'tempot'aA ~ub~ti-hAtio n

~lnovk in t blAt affec+ at- t+1 )

Q.) stiCk'f P..1ce.t

~ Ne~. fuO,UCt1\1Ii"l1 gvlOU<- g, :;:) MPL l =) W~

16lAt) 'In recJ'l"L we" cannot ~w 1n tW- ~lttOY+ rlAVl.

-:;)

/~

/ ~) F:ic'iioYlS "In FiVltll'lG-iaJ. ML\fkets

€.t. AsI().V\ C"is".;> Ht:tMbevgeV" III U.S. ~

Page 4: NoteRBC (w/ MATLAB exercise)

4

@ Choices Unf.ieV" Uncev-ft\iY\ty

A) Modelli"9 Ut1c'Y'i"tlintreS (sCtJli'cks)

~ To see "13IASif1€SS Cl(cAe" -;) j lAst adol \Ar1c€'fmin+y to tVle PiVet"' ~ _

~

we Ye~o.'1et'\Procl~.fi.l'· GlS the ecoY'lOr\1'IC ~ysteVV\.

'" "BusiVl€SS CLfcte II as 0-. f'ai\uve. of ~ eCO(1OM;C Gv~te'N\.

ASS()rVlp+iOV\~ :

-",) Theve aye.. 2 peYio~s; t ~cl t+ 1

1<-) Let s == 1, '2, ... , 8'

=- possl~le evevrrs I gt-ates of t1t<rufe thCH (V1Ot"( occlt\y iv) ~Je, t .... 1

4 eiD" 6 x mt-e,. J "-

'l\;~) ;;;'iTs probCl~irlty thert GtCtte g LNiI\ OCCtJY"

~ AH possibilih'eS of 0.11 eveVlts. S:I

S c 1 £(1):1 n(1)::') U [.c(1), 1- )'\(1)] >< 1i'~

s :. 2. .-C ('2.), n (2.) ==) lA Ge(1), 1- (\(2)J >< iT'2,

s = S"

~v) ProO" FV\: I~ = ~. FCK, ~~ 'lCtVlc1oM \/. lal?"(

lIv\Aev€t A = tec[.,V\olo9Y

At+,:::: S pOSS'\~ v~lue.s of tVtt- t~~~IYJOlogy In t+ 1.

Page 5: NoteRBC (w/ MATLAB exercise)

3" 1'3 1 0'/

v) A

.j, J {$ iY

vt~t, 1-Ylt) + (3 t, ITs U[.ct-+l(,s), 1-Ylt~I(.s~ ~ J I

\/ 0" v

- A V'ep('e5e~w.\ivt HH ~uppl ie-S V\. unitS of tll\t1e evto(O(,AJfv1elAt

as. lo.boY

\--nc; \.N~ il\cof\llt = LNt V1t

- 111e HH ctivi elLS ii1e pevio et i InCOMe \: ('0 ~,S""" pliO",: -Ct

$'Cl,vl ~: k-t+ I

- ~~e. t Con~tat\V\.t of 16t Puioril :

l-<!~ + kHI - k~ {, W. Vtt + V"t kt] L; Cwoou Vtov-J (\I1(,{ch tiMe. tWy'lI C1VOVI.<?

2nd Peviool: - LNo~k lAMe!. CoV75Utvle

- me. HH veVlts e.-o.pital to -t;ytvlS.

- He suppli~s vvovk e.ffov+ to t1(}VJg.

- He, ConSl,WAeS all tne. ·lhc.O(Vle· eaYned ",V) t-hi$ peviool. --} ...Ct;+1

- P.JlAd.~et(~OVlstmJ(\t of .z,t\ol Peno~

not a f'n of £

% 'rh; clitlJ~· eV\ ·froM F€/ioct t

v~~) \'10 Dep'lecianoVl

Page 6: NoteRBC (w/ MATLAB exercise)

b

Max i-l0., 1- 0'4) +: ~ l'lfs· U f'''CS), l-"'~+Ils)J /~ At[c-t -r kt-tl - k t - WtV\t - Y'e k tl ~

f At..-,(S) [..c-t+1 (s) - W:t+ICS)- ~~TI(S) - [1.,. '(t.. I(S)]. kt +11

"i,L~) The Ufiliht fuVlCtiOV\ is 1°9" virl1M1C .

\ LA (.c, 1- rt) = ku: -+ cfi.h (1-1'1.) I )

.~

;;t :: c McAx k.c~ + epkC1-Ylt) +~ t,lfs: · kv~~I(S) + et> kt [1-nt-tI(~)J

At[s + kt-t-I - k-t- WtV\.-b - Vtk~ : )

~ A,...,(.S) t.c<tt(S) - W",(S)·Vlt..(s) - D+ ....<sij-k..,1

foe: d;t = _1 At =.0-d];.t .£t

~ = - cP--L + A-tWt; = 0 ~Yl-t 1-l'l.t

-:::~ot rb 1r~ 1 - At..., (S) '= 0 d..c.-t-t,(S) Ctt-,(S)

'd;t = - (bTls G .-JJL -t- "\t+,(S) wt,-tiS) = 0 d Y\t-t,(S) 1- n-t+,(s)

;)£. =- -Ai ,+ 2. A..t-tI(S) [1 + vt+,CS)] - 0 . ~kt"-l S

~

Page 7: NoteRBC (w/ MATLAB exercise)

.ct : 1 (1 )= , t7; 'A;)

T (~)ht :, 'P _1_, :: l6;W-t;

1- t'4

.ct+1 (5) : (bTls _1_ -::: At+I(S) (3) 4i" CS)

'

Vlt+t(S) :

Ai; = S' (5)_ L.At~I(G)[1+l't+I(s)J

~ OVl\"( i'ni<; vavia~ (!.aVl eonnect 1 Beg inro the O!?Jec'+lve.. ~.

A t<ep~evttanve. FirM M.~X'Mi ze~ pmfit (II) :

~ by 0(.,101 se"g of .f-ctc"tOVg of prvet t\ ervtploy(?o(.I ;-aki C19 p~/ic.t.S aG c;]iveV\.

"I / \

MeAX' 11 = ~'FO( f'J») - w·N - r·K K..N ~~-- ' ,

Let ~_(K_J_N_) _=__K~_N_"_-00-J)

1

Foe; = 0 -==) ('to = eO-'\ 1-00

oOAtK t Nt MP",­

-=) ~ (Nt

~ /.. ­.!...­

= ( I» -co1-00) AtKt Nt :: MPL­

tk"

~ :::::. C1-cc") Yt N-f:;

Page 8: NoteRBC (w/ MATLAB exercise)

toMpe.titive ~q.fA.i \,btiUM :

~ eOVlsists of cdlo cotiOVlS

- qIAClVltHie.s \ HH tkooSl 5 [ -c" 1'1., [!:.... t,), VI..,(SB:., ' FioVl c(,."ooSot (K K N· N )t, t+l, -t, tot,

- pn(c..e.S tY'ot, (,.J-t, [Y'tTl (s), Wt-t,(S)l~1 1 ~

/. ·treat ~ (k ~ pC! ~ Mete' ~

.-, Given PD'c..e-s,

tVu. a-UOw.tion f-Ct , Y\t, [c-tTICS), Vtt+,(S)]s:" kt ... ,1solves HH's prolo\eM . ,&

fu..t CdloCtttlOV'\ (K-t:l K-t-tp Ni;, Nt.... ) ~olves the ~f M'S problEUVI.

Mo.rkets cleClV" '1V1 eve~ dOtte .&. state.

DO. :. Sy

-" FOCs 3.. eu~t CoY1stro.iV\ts (.~xe usee{ to Ctl'ltl\"(ze. t~e. (eSOurCe alloco.hoVls."

os VJ0l\ a~ the ol'(()Qtv\icg of -rhiS econoMy.

.~

This ~tt ucdio\'1 gives TYle COVlcfltioV\ toV ~\lo ca.+iy1~

c.OYlSlAMpnoY\ g Le\su.ie optiMCl,ll y.

~

This is, r_r<.-S-'f:,-{1--n-)-=--w-'t-----cP-o-1-_.£_Y\_,]

~

4 (vtoX0 ~NtL 8~'1 \i hvl'utvl

~ tZttlv'\1'c., ~biel\A.

1- 1-Vl

K..t\fV\t. eVlQ.O'i"lyvlQV\-\'".

Page 9: NoteRBC (w/ MATLAB exercise)

q

One- Pevio(i Model

AS$().(III e, 1,) "c = Y

LL) w = :t.. N

~i,~) V\, (Of N) will be C\. tOVlstc<V\+ g be- 'IVlcUpellldeVl +of wCt-}eo

- Ft:JM HH,

oc 1-1l4 {;Jt - (1,-- oa) ~A ~ Kt N~

== (1-oC).1. y.#; Not

= ( 1-00) .1. ,e,~ ____- __ "'-t 11;Wt _1~~]

Two - Pevio~ tv\odel

4 Lobov- leisure, cltloice 01Vl oiffeveVlt peviocls aye lin ked

)lAb.stitt.tteR (2) ,Clt) 'Wl1"O (6)

At :: "2 At....,(s) L1 +Yt + l(&)} s

ep '1 ::::.'~ I- lis ¢ [1 +Yt-tI(S)]

(1-V\~) ""~ [1-Y\t-t1(~)}(,.Jt-+ts)

~ ¢ (1+V'tt,)= ( 1 - Vltt,)· Wt-t-I

. (2J(1-V\~) ­, (1- V't+l)

Page 10: NoteRBC (w/ MATLAB exercise)

10

As (b. (1- Ylt) -(1- Y)t-t.)

If W-e-tl '/ W-t ~/ '(b (1-Ylt) ~ 1 1+Vt+1 (1-Vlt;....)

-0 -!!I =) ) ­

wt +\ l' -:=.) ~ (1- tlt) (1- nt-t') Wt,(1+V-t-t-\)

1-Vlt '> 1- Vl t +1

not; <- t'l-t+1

.~

LeiS"Ufe. IV) ~ eurreVlt p€viocl is ~lgltle( Yela,tive, -to the, \ejgCAVe 'If) ~ thtLt(fJ

pvloci,. 1- Vlt i 1- Ylt..-I

~

repre,j,8vrreo. OS Opf"i'hAVI"j-h-f CO's'r

==

::::.=

U' v

= ~ L lis [~ [1 + Vt+1 (,)] ( (1-) s ..c-tof-I(S) J I

4

I

Page 11: NoteRBC (w/ MATLAB exercise)

11

~Lt~S+l-hfi,-ti()9 tV1e, bud.5e-t Cliv1strtlliY1f~ iVlto t&u.. ~L,(.leY t7q~atioVl ;

- (.3 uct~ t COY\st filt,-t Ot 1s-l- P~ 0c;l ~ {p,5-)

(.ttr ::. w-t; Vlt" + Y-t; k-t- kt +, .of kt­\.. //

'::. WtV\.t + (1 + 'ft-) kt; - kt +\

- S\A~t CoYlstril(\"t of flnIA Pe-ria{)\,: (P,s-)

'cHI (s) ~ . Wt-tl' n-t+-l + (1 .... Vt-t,) kt-t'

~

1 := ~ E (1 + X't.-t,) ConsvMpfi€M- S~ [wt V\~ ... (1-T~t) K - kt...~ ~-t+, ~I + (1 +vu ,) k"bt.Jt 'DuicS 1M

~\·n(t. 1W Proci~ m i'.; Col?~~Vo~\()S,

&. f{-()"" C31.{~t" Cott-s +(~ i {~ t :

Y-t; == t-t, -+ kt,+,

( 1+ V{..,)

1 Yt - kt-t,

-

~

=

DC Yt+l

k'tH

~EPC~J ~,

:: ~Et~J

2­"cot -::. ~

kt,ot-' -::--) Lk~TI -== ot1~e-1; {

Page 12: NoteRBC (w/ MATLAB exercise)

12

\<t+l

'It - kt +,

k't+,

kt +,

(1 + (OEoe) kt +,

kit-,

£It

~ub~tHvth~ tVtls

.t. (N~

..ct

-l- (1- 00) X-h t1~~

(1 + 00 {b) (1-oC)

- ~Eof)

~e oC ('It - kt-t-.)==

:::= ~E rxJ 'It - ~Eoo kt +,

'::: ~EocYt

= &~oC Yt 1+f;toa

:::

~ Yt: - ~+I

-:::. y~ - EJ2- '1-t; 1+~(?

:::. C-~ ) y~ 1+04~

::::

=

into ~ -mV\~eVJcl( cono.ih'oYl 'fl oM p. q

- ¢ .-L 1- Y1-t

<p_1_ (;et ..n. ~ (1-oC)(1+oc/b)-1- r'lt l'

(1- Y\~)Jl. '= '4> V\-l.

= 4>/~ .J1. - .1L Vlt =. cP Vlt­-S­1-V\.t

JL -= (<\> + SL.) nt"

( 1-\1\,,) (1 + 00 ~') (1-~) :. = '" V\.'t ~t :;~J

Page 13: NoteRBC (w/ MATLAB exercise)

13

~) {("ponse- -to sv.ockg

~ use" elaStiCity" to Measure C\ vo.yio.~le 's yeSpOVlS ;veVless to -rYie,

COYlteY\l\poroV\eous tecnoloqy shock.

1

ocA. A koo 1-ac k

~ t t Y\~ - 1;

1+ ocp

::: :1>

Page 14: NoteRBC (w/ MATLAB exercise)

\4

e.14-,~ COYlsicieY" an econorvly cOYlsistin9 of a COVlstaVltp'opCdcxtlc)'V' of. '1\1 fi V1itely:

"rved IVldivicLuaAS .

The fepre&eV\-tative '\V\ctivictuwl (Vt().)(IMiUt; tkt eKpecteol value o~

It

o-JAere, e '/ 0

,) Sttictll( Corl CtlV e..

.' OLAtput j; \ineCtv '\Vl tCtpHoJ. + OVl odditive dLsmv0o.V1ce: / ,/p..)::~/,v.."'~~t r g

Yt - AtK.-e + ~ ~ ;; VlOtk.

kt" ¢~1~\~'

1vu~(e. is no cte-p (ec iatiaVI -:::=) ~lK_'.:,..t..:..l_::='_'Y._-t_-_Ct... __+_K.......:J

A£~Urv1e.1 fA = P1::: iVltevest.

FiYlQll'l, thQ dist\,AY"baYlce. followS 'a -tlrst- or-dey aLAtO(e~fessloV\ process,

ret == CP et - 1 + £.."t r """"""N- ~ lVleCtVl- zero i,~.d. 9ViOC,KS / i ""­

_ . If ., " ' , F> 0 <.+)111Q:,~V1W,V\"t Idl!,Vll1eat eks·htJ blA.\ioV'

~

~e~~l = ~et" + 6~~;) ',···H­

o '-9l1'v 0i;;$ (tfe f\..tec..\Vl-:zero

Page 15: NoteRBC (w/ MATLAB exercise)

15" (5 1 0'1

(jt'f\U urH/ht is G~Clolyt(hC fV((V1

~ Foe blCOMes lineav:

"1 I

Conh0\ V. S pc,.;si\?le vall,lt of ~'V1()(ik.

~Foe: c: 1- '2.ec = A

K: /\ = _1_ 2.f:

'\Is YK [K', e(5)] 1-t'P $::.1

\/V

~

1-2ec = _1 2.. "s 'YK[~" ecs)]1-H' ".. , \

/ /

~velop~ ~ ~: v~ tK,e,l = (1tA)A

:::;;;. (1+Aj (1-2 ec) /

/~

r-~c ­C =

~

[c~ ­

Page 16: NoteRBC (w/ MATLAB exercise)

lb

FOC: Cob : o (~)

o

~l"a A~ P -t, -/

~) (1- 26C-t) ::: ~A) Et(At+l)A-:-/

V'-~Ct) :: Et (%~Je Ctot;)

(10): ~tC~, 1~t ~(e..'s ~vadoM Wal£'

./ j;l'1euV' ·fo{lv\

b) Gue-ss tVlat C.oY1~U1V\P\iO(l +o.kes title foVlVl Ct, = oC -t-~Kl; -+ ret.

Give V1 -this ~ve,s J Wvtcd IS Kt +, Q~ 0 fUrlChOYl of Kt ttVld, tt ? c) hL1~t v~lue.s Must thL paaOMe'tM 00) (b, Y VtCtvt fby iC-u.. FOe. to be batlSfie6A. 1by all

volue.S of! Kt ~ et ~ h-oM e\,t~t &V1Sh'7Jjn.-t-=

(!t + Kt-tl ::: (1+A)Kt + et;

~Ku, (1+A) Kt + e-t - Ct

Kt +-, =- (1+ A)K~ of- et - [00 + (b K-t'" Ye~]

= (1 +A- ~ ) Kt + (1 - 0) et - ocl~t~l)

Ct ~ G.t; C-t+,

oC + ~Kt of-yef:;::: ~t [00 + ~Kt+V'" ¥ etot, ]

-::. ~ 4- fb [(1+A - f.»Kt + (1--r)e-t - oe1 -+ r Gt et+t

Ct = oc + t1"-A ~f>; K -""~I ... ~~~.... ,f>(1-Y),et -- 0

Page 17: NoteRBC (w/ MATLAB exercise)

gh1e..t et ::; oC + jb~t -+- If4 in ,il1eCl V to fVtll ~ ~

QIJv~ CiT = CO ..... \(b(1+A-~~ K~ + f(1--r? 4 -~ " V\ SlAlel'S

~

-::: .-::'y~Kt (!J (1 +A-fJ) \<t A -=

let : (!; (1- '() et. "='J '( - " ~ 1+~

~cIJ = oc-oo(b . ") oIJ 0

t

n1~ \JCtlue.g: cr thi.. PCllOtjVI~h~{S (Vll-{st be- ·fbv 1UL Fo C ·w b~ s·o.h SAe d

,Pl1\" all voJlAes of Kt a..,.J et­

c

6 0

Kt+\

-!K..,

~

4 ~(W\~ Btte:h'oYl of '\itt,' S

:::::.K't-t' Kt + .L e't (b

Page 18: NoteRBC (w/ MATLAB exercise)

'Iou Irtttve., K t lAMa e-t; ~ f'roclllcL

i\JeKt p~jiod Ou.tp~d : You VtClIlf.. \.<'t-tl:; K't + _1_ ei; 1+A

C1+A) Kt + ,• = (1+A-) [K + j.. 1.1

1+A (f •

(1+A)K+e

d) IMA.cAt ore tVte- etfectr of a oVle--tteVle slttovK. tv ~ on itJe pllth~ Ot Y;1 K, av,.c{ c ? W~ QSSlMVlt '\'t.v-. -fbl\ow,"j AR(1) FWce·5S

,.

for tkt- tecVJVlo lo~V ~V1oCV"""

et :=: <p et - 1 4- ~t l'

<!on~\c£uS as <fYll~-·\1(Vl.l., ~\Ao(Y-

C'rI~ ~ 1: 1~O) ... , 0, . .. j &7ns~t 0. ~ y~t~ of S'ntte VO\Ylttvle~~

kt~' -= k-t + .-1- tot;1+A

Page 19: NoteRBC (w/ MATLAB exercise)

/q

~tttvt ftol'V\ tW. i n",tia,l pevioc! vJ.1e Ye. ~t;:::: 1

l~:l ~ [~ ;ll~l ~ [~l! 1V\eY\} ~e, follGw\ng pevioct,

0r~:1 ~ [~ ~1[;:1 ~ [;l= [~. ~Ar[~~ ~ [: .:Al [~}1

l10 :A11~:1 + [~l· 0I~:l ::

= l~ ~r[::1 + [~ ; l~ [~1- 1

- l~ ~13

[~:l + [~;:~)J

Page 20: NoteRBC (w/ MATLAB exercise)

-:=.

[~l [~ :lf~:l + [~].o

= r: ~Ar[~l + [: ;A]3 [~1· 1

If­:::: [~ ;] t:l + [f+A(1;3~+ ~~)J

/

Page 21: NoteRBC (w/ MATLAB exercise)

" 2/

/5 09

C) Plat1Vling Pm b\eM

~ tJSe. 2'f1d. we,\mvt 1Vleov-efVl tv (ilaiw. title pflll?lefVl +0 -t1'()d out me PY1'CL$

"In the S'Ibter\ll.

\1H (5 BentMIioY':

;t = Mo.-x k.,c-t + <P ~(1- V\t) + ~ L i1s l k..c (s) -+ q,k [1- v\CS)] ~

- A[.cot -t kt ... , - Wi; V\~ - (1 +Vi;) ~J - '2 A.L5) f.ccS) - wCS) I'll!.) - [ 1HlS) k H.l i

tJlvp

rO.C; "ct;; @ =::

@ I"V,-". = A,w't

fvI gS..c1 1-"'~ '= wt -::.

~

<pet 1- (lot

1- V'.t; W(S) :: d> £C$)

1-r1(S)

~'ils ::: A(5) .cCS)

~ 'ils cP = .A (s) trJ CS) \ S 1,2.."",$

1 - r\lS)

~A L A(S) [1 + yes)]

~

.!.. ~ 2. &7i$ L1 -+ yes)] 'ct ..ccs)

1 =: I.1- ~ L lis J.- [1 -+YCS)]..c{; I...c(')

/

Page 22: NoteRBC (w/ MATLAB exercise)

2'2

FiYf\ll ~ 6eho.vioY:

v-t ::

.c 1-oC ::Mo.xi\ Al t Nt - 1Nt.V\t - (1-t Yt-)K t

rOc..~ Wt : (1-oe) A",K; N~oC = (1-00) Yt

N-eoC-1 1-oC

:::. 'C:('1+ Yt) cO At, Kt Nt oeJi K.t

-=..1- ~ P2.l\s 1 .ct. kt +,

fu(Vl p, '\1 :

.f!; :: wV\+ (1-+y)k - Y ~

o(J 1-00 'lot ::: ..ct + kt-t' = A.d<t; N~

oC 1-OC £\:; + ot) (b,t;t - At; Kt Nt

00 1-oe ::::- 1 At K't Not. Eql,t\li ltN-tuMIJ2t

1 ....oef> I LottSVI"1ptiOr1 Ceo"'~r't -w p,12)

OC 1-00. -:::== Y--t+1 + ~"'I AtK-t Nt

oO~ ~ 'I-oC

::(~(b + 1) ~, At"Kt Ni;

Eq,ui \iItlviVM &0l,,1~

I

Page 23: NoteRBC (w/ MATLAB exercise)

2'3.

(1-00) (1+oa~) 'it (1-y'\~) ': ¢' Vi; Yl.t

Let ...n..::: (1~oC)(1-toe(b)

-Y;

-:;:...JL ~ (1-n~) <\> ~ V'\t­

.sL. - .Jl. V\ i:;; :- <PVt-t (cp+.n.) not; = ..n.

~ .il- lAm SupplC( '= ~biN' D~.tt l4>+51­ (At -\'fA'§" [;((,e-ti ~ i ~Y1~

Page 24: NoteRBC (w/ MATLAB exercise)

'24­22 1 09

~ WMCUS Pa.P€vs en f2,eeJ. 6i4s;ille&S C'IcAe-s.

A) EGfwt;\('a c. Presc.ot+ &. FiVlt1 E. Kydla.VIC)l

~ sueks tv elCp1a.iV\ yeCLA(re Vlt .p [ue-tLAat10V1S IVl eco flO (\11 jc ac+ivHy ~

Mo-l<IM\ zi~ gtrtlte~ ie,~ r() ttu.. Ivtovkets.

-'> Key pcuarVle te~.r ()re, QSS i'iJrleet volue-s bo~ec{ OYl o\o~evvohoY\ S VlO+ di{e~tl~ (elo.ted

tv \)vtSlness cycles

f?Jo. - HH'5 b~iora1 responses

.., fhJot~ Input ~VtavU

~ tlVlalt{-ze bv.Si(le-~s evCAes in Z. stepS:

1'tot ~tep ; lbvti \0. a Mode-(

4 inc{ucltd OVll'1 yeat qp,uVltief. i )

t.e. olAtp(..olt J re-Itdive. pdUJ

t'~ 5te.p : 6X+eV1et t(,.\J.. IVlOck!

w "ncLucU- ViOMi () aL q()'QVltihes

~.e. (Vlot1e~ J.. abroLLtte P(lCU.

~

to()cwSiOYl~ -~ ~econcJ. MC4-~ be uVlVleCeSsQr'Lf

- C3uSillesS C~vle g ea V\ 't;)e expla.iVleet alMost eV\ti(e,l~ by just real QU1Vltifus.

e:tQY1O /Vll.( is gf-a;te. (kt 7 &+;)

rvl,(~e,lI\old,ts Bekaviov: 'tVl,'r eKpectafuV\ is Ott +1tv1e 0 bosevl 01""1 dO+Cl Cl+ -\l(LV\t 0 ?

W1C-"ll-tt\V"I~ "\1f.vducut

- ()V1ceytaiV\t~ IYlvolvec{

Page 25: NoteRBC (w/ MATLAB exercise)

25

e\a{;.livilvt of gub&iitu\iot\ %et 1 \e,I>!.t(e" J 1-« ~

( C -¢1 .l ct» - 1 . Glce, 1-n.) = ' 1-0

-t e\a\;n(il~ of ~~'jA.l-?~·hh.A.nl)Y') ~vv (Jetl'oc1.

~ f'.' j E \ t:'. 1~IS(,{(e., (:fl.,u.. lhvt€.- e,tIlJov.;:vtRvvt Is iWfMcJizeJ. to :1) nl\fI\. t.t ef ~q(,('U\Ot1: . ~

DC t r '-t 4> 1-~ J ~{lltei'S:v1,(t g..el"'\f'lV'1{\"~4NtMo..x Eo L ~ (Ct.l ) - 1 iY!J 11 171!- \({,l.y'i+~ ",(1\'\

t~o 1-If ' «WhWIUM.

~~

(1-4» (C~~lt~)-Y c~~,t~ - At t-h 1-cP 4l -¥ 1-cfl 04'-1)'i' (Ct ..it) (Ct At '::; Atw-t

l-<.t+\ : At == E1;At-t, (1+V-t-~)

:::. Et ~"':.')C1-+Y'-to - £) .

= &t ~(c:~; )t~l)o ~~!~~,J (1+ Yt-c\) "--'=<t---¥' ~

~ 5-b [ (C:+ l It'1-' f 7f

c~~ It+. (1 + Yt - ~ )J t l'

.f-t

=

0t'f1(,t. (kt ? 'l./;) ,s e.[Ov1()(I11.t'J r·t-zt;re..­ .~) FMc{

CD F(,'~r5. ?OliVi fV1­ II (k i7 'l~) (2) i.fr..we,~id<~ tbltCi( h'l: )if"t )(t. J 7 t- )

4rv4.<st I_~ ",p-nOAaA.~v

gNen 4W.. p-rici~ ~

If) (k ._', -= n't:)~t)

. , k lk"7'Zt;) ~ kt;

4 ~~~t b~ opn (,-'It'\£.,._ . qlvl"1 'It.... D,ICl,'~ f,\ .1:,: I:~(.+ &f

. ~oH~

(]) A 1(;\\(11 ~F Mf)l1r."Yl k1.' : 1'"A:-,\

C (tt-l:-? V-t, lL) ~

qrk. "2.. \ " "'t; J z;;;.!;J

® ~;';\d/'1 hr.·~ (I'l Ck-b~ ~I; )

r(.~,tb )

Page 26: NoteRBC (w/ MATLAB exercise)

2b

vr ::;. "lot - Yt k t - WtVlt

Zt' f (Kt , not) Oar-put Ct:.,nsJ'fZullt-- O(ifp~l.r fuVl 0e {,t,/locuted. .ft1 uuveVlt Ct:­'()( \Ylv'e,~hV\eVlt-~

C\Z.S PioJ"~,

tUVtVlOLCXj'i paritJVle:r-tr gltwlks ~ n:u,\o.OM V

: B:h. , V\t;­

::.k-t ; =- (1-c(»Yt kt

! Nc:t'hovuJ JvQ;M e

I,e U~· IVll:\1UY1CJ. Jl1W'M{J./::: O.J.;i+

:::. yw Iflt. (l(,te,., + d€pf€c-ia.:Hot\ rtlte (RHS)

t ., ~ us. = t+cJ~ :;. O,Oi..f tY-OIYl K'fcJ.luvu;.{ ::: 0.0-1

~ ~ifelo{ ii1; r (o1a.t/Wh\J2- ::: r0 l{ ~'S

if ~ -= O·b4­

C1 .... cP)~ C'/~b

~ "::- 'l.b 'I

Page 27: NoteRBC (w/ MATLAB exercise)

L.o.w of' Motion: J......k_t-t-_\_=--:-_~_').(-t_)_-+_(_~ -_6_)_K_-t~1 ~

6 ~ ·fj-v.6!i'OYt of Ov.lp,..tr-.?!:i + (1-b JIk:) )~ lV1I/~teli\,

Y1; f' ~ 1-0 =.lYOiAiCiVl of O~{\r",tlf ' 0,1 i

't<; WI)~i.tMecl,? 2' . II) ~\~ f\A.V1 .~

Mafke+e. (UtI;

OUtplilt Mark£tg c,[eCtv -:;') Cob of" )..lot = y~

~TVlput MCtvLdts Clettf -:) C4 kr

s S =Vlt Vlt

l(.lvvt l09 :

-)"kc~ + ~ ('t-1)hvt Wi:; -:::: - P -O~Ct1"' -+ cPC¥-1) kw-t-t, + Yt+1 - b

;~~:+~ + cf (~-1) kLWt

1.5

- p -t- Yt-tl - b + cP C~-1) P \---y--./

O.IJ"i... o~o If

~ (,'"'t+1

13/a'iVl v'2­e-' I

~ vJrl,tVl p::: 0,02. ~>

=; CoIVeSPOYlJ·tv LCj

Page 28: NoteRBC (w/ MATLAB exercise)

I

P ::: O.ott (6=_1_ = tJ_q'f 1+~

t+

G-hez & BeckeV' (lq~5) :

<:p == 2­3

2 NoVl- Mavket Activi ties. 3

;

1-~ 1 :. )4V1

T -~

1-cP - n ..£T

~

.f -::=- '2Vl '1"

Ma7Y\i ./uJ£ (l.p L\

Page 29: NoteRBC (w/ MATLAB exercise)

f iC neVl0o,L.<M, t-tCtVl~V\ Owtct S/Y)glewVl (,qgq..)

~ ::: £5 b

.J/;

1 :: 5Vl

Te(ivlVlolO~lf ~~ock.: C~olovJ IS)

Y :::: -z K1-~ VlcP

~

Not o.CCOIAV1t (tw qrolN'~ In Input:

Prescott ~

6kv bh~ - ep~kV\-= .'\" .

\CV\O VIi) ~ 0,1: vd\'! Ct I

o.iJ&.t 1\'\ v,s

ealmllLte, V(XY'(AMAl) b.-r YUnYl~ Ve~(e5SI'oYl ;

L1 ~ ~-t - D.tvt, i!t-1 4- ~~

l-t; = P "21;-·1 -+- 0 ~ 0~ 1.

V(J.y (~.fM l.t) ~ VOV' C~ivt y) + e 2-Va'/" (A Jvt YL-) - 1. e Cf;V (D~Y) D~v\..-)

J. Wt-. ~ ~ I'\-z.

J'tteaSlAve,MeVlt BvV"ov (4~ V\.) ~ Use, iJ surve'1 fo

4 A su'(ve~ of eMploVevS ccttr~aVloL ~ioLe.) H-H_

4 A ~uyve'1 of HH (~upP"1 siclL)

To f1Ylc! VQv(~.tu Vt) =; l;(Se. eov(bAt-Vl", ~Jvt. Vl.-z) rY1stectol of VDV (;::,1M, rt) ''f ,1'

VI + V1 Vl-f- Vz..

v

Page 30: NoteRBC (w/ MATLAB exercise)
Page 31: NoteRBC (w/ MATLAB exercise)

33 2'7- 1 oq

GH2. 1,

Llo/u.lV' 1)'ffeV'"9V1Ce fq,(,ttltio lAS

fiaM : ~e'" FoYMev-; "The MaC'(l) econof'll ics of Se,lf~ fulf; lilt; fl9 Pmphecles ~ 6!1t,2

--S) -this ~ecHoV' foe-uses OYl a ctepevdence Df itJe pfeseV\t On The, pa~t the CtrfteS 1Y-om

-\11e ClCc,uMulttnoV\ of C-Ctp·,ta,,\,

A) l.intari-z.in9 NOr1\intAV" Mod.glg

0.-) Nontit1eaV" Models to ftpfeteV\t elofloMief;

;",ppost, [.Yt '" fcYt-1; ,,;,) 1 / .

e:'tDC;£ Vl eo u SeVlclo:JeVi e-o us vCtYi(;lbili.

VCtriCt~ 1\l'

G!eteo"'i Ylt ct ~ '\W. cl.e,terrvltlle.et by wc+oyS it-lCtt aye. Q(.,(~iclL of econofVlic 0e-k Ot ~l'\.ts ~ cRoMaiV\ O-P iY'lC/.;uify

~ GNP ~. weetthev; polih'cc.l p'ocess.

lh(s etLlA.O.;lioY\ is 0. c;(e,~c,(Jption o~ ()l,,{y be..li e,f a~olllt tCtu- wCt~ tYt~t Yt- d~P~Vlot$ OVl

- its OwYl past h,stoY\f; Yt-1

- e/<.o~Vleo~S vatl(i~; ),.(t

refllc,f NtfN ~~. f\Aotltl ? Th"S qropk Lt~lt<dll( I)seet toY' DVYlo.MIC MOr1J)...

f (Y't,-1 , i(.) 1'V1;ev€. (Xlt (VtO-lt- tVt.aVl 1. tteAA4. gmte.-.

111i~ IS still (). t<"Ch'OVl

-bY

r U-V1 (}taI? \e. If Yr:J be,~I\Y) 1/\ ~ intef\lU, CY~ yc.) =) ~ ~ yc

'SrUt£.t'{ t;;~{e"

If Yo V' (Y~ Vb) :;) Y6 4\A y~

Vaio
Text Box
Ch.2 : Linear Difference Equations
Page 32: NoteRBC (w/ MATLAB exercise)

b) L.tnear i2Jf19 AtAtot'\OMOI,(~ Eq,UAb"Or'l

~ FUVt6fioYl f(,) does Vlof deptvtd e~pllcHl~ on -HMo(.-;=-.

'! == f(y,x)

This fu,Vlc.HoY\ fee) has ~ fixed.. pO'If\tS' a,t y.tl, <, 9'b~ 'Ie .'

4.o.re ~'lnte(~eC+ioVl~ lY\ .,1tv,. ~q).p\t\.·l.AMt{e,

l:t. ~ y!]

-" At \Stable. steadl( etofe-; JY. 0= Cl + byt-,l ltv~eve b:- f'l CV,)<:) IS ~LL stope. of f( .. )

- - e<.otultteol at nI(eof polf\t y:= y-by

SoLliLrlOY/: ~ ~eC{ueV1c..e. tYo, Y1, ,.,} OpprOCll/iAf y

~

1lAe c(lffoveVl(L ~ft" W V10V111{\ea.V ~ t(·) ~ ttu ctfl/rOXi MttiiOVl b€co~ 'S Y"lttl Iev,

c) L.ifleavizifl9 NOVl,(l.c.(tDnol'4ou~ ettuationt

-'J ASSUMe." Yt::::o mnc{OM vc{Yia~ vy t!: S(v1ttll bOUVlded. ~t CoYltaiYlS ).(

~

-tc> cttHl1cl y ~ fey, li)

g Op(xll'XIMate fe-) ~ First-order' Ta1'[ov S~v1V; ~ y...

~ ~~

[flo 0.. + bY, + C~tl='

WrJe(e" C- ~ fit (.v, );t)

(A =" Y- by - c )i

-» \hL o.s5\Al"lpnOV\~ -y IS swbQ ( eVlsuv:e that tvre etevioJi oV1 of t)(t) 'h) fYl}V\I1

" v. is $'MGtll \ l):{, 'f ~ CUVI be kept C!vbitrovi~ SMUll "It by p,ckl~ 4W.. bOlAV\&S On ).(, o<ppr-opvitAt(!"Ll(,

Page 33: NoteRBC (w/ MATLAB exercise)

.J~9(e-CULnOY\

'"

f(k~) 1'.5 strJ'Ctllf tOYlCttue, g;

o ~ S <:: 1.

kt

~I~TI C1- ~ ) K~ + Yt - Ct, ,

K k*1 tf; ::: (1-S)Y-c

Lf{)eo,yjLI~ fA Non lmwY" Dit'f'€y0Y1c.Q. Bq,LW;h'vv\ 1Lt- ~

:: otAAt o

Gross Ivwes-tvvIell\t :

$ eoostaVl-t gavi~ mte..

Lt ~ 1­

0' -:::: q(7)wt'tA mte.. ot teul/1VJo lo~ j ccJ.. p(7)~feSS

cgi f\ c;., P(o) IS hDMO~(1 eous of d~(et i

~

1"kt Solow MoclU has Ot -0trst- orc;(ei'" VlO (l- \ineaY' dlfferenC£.- ettutlh~ ~

'0 kt.j.\ :: s· f(kt;) ..... (1- 6)~-t

(;J;Ie (e. k~ ~ Kt :;. K~

Ati,Ctl At - ~ ~

1

At ~ Pmclutn vH'1 qrovvt~ furtJlA.,lA fi·~

-::; f(k ) :- Yf; Y.,Yt t ~

Atl-t At

Page 34: NoteRBC (w/ MATLAB exercise)

=�

~i'()u.. rCo) IS l"ilonoronie-cJLy '{)CyeD~jV19 Ir'l V(t�

{f.;�

The, rvtO£:h.;l VtCl5 o.t MOSt 1 ~tyictl( pos.,tive- gt-eo..ctlf srate tho.t satisfies ~

qoC'~ lVll.tvKe+ elearlllB equo..+ioV\�

S·fCk) ~ (o+b-1)k�

~ u~r~ r-/

k t ~ k t - k�

k�--W ~

I'

k t +, cA. kt

tiMeve 0.. == s: .tk (k) + (1- ~) o�

1V\a golow Mode) te-lls that kt LM11 eov1Ver~ to k .(l'

S·/r'l(.t kt is tkt fa+io' of capltaA stoelt.. to Cl '3WW\Il~ P(-octucJ1vity treYlc!.

y :=:~, "-" fCk) k -= K-\:­

Ao 5 t�

fCk) VI;== Aao"t

-l/) CapitaL &. OlAtplAt qrow tv1mugk nM~.

~l,ttl K OMcA Y d.o Vlot qiVw D..t 0 Sre-tl d~ ({A tt.�

~O ,II< (»..cJ.. '( HuchAcrte, OroUVltt ().. 0IOlIv'''j +YeVlcJ. (iVl ttu.- U.S,)�

4 the fluc-hAa,tcOYlS Ctve- r'tt vtclo(Vl vov1CH~ft,s. ~

t()1Y"ottua ~ ,die<. of 0 SfocVJosh'c.,., c£ tfFefeVlve,. et(uation.

Page 35: NoteRBC (w/ MATLAB exercise)

- -=

( 1y(;;

f,) ~lvi~ Rn;t- ()'f(}ev UneaV' Mod.tJ..' ~ 10 l,tt'ldefstaVld Vlow (). StOCV1tl~tiC lineav rvIocte-l genemtes De ~totioncj(1 pwb oUst,

\'Va, (Vtu£,r first \<.VlOW f,th o.bout -r~e Vlonsto.tiOYlGl 'f"( belt\. of tIrl.e. VlOVlgtoC!rlObh'c, (\IJoci£,l •

(}..) First- OrtJ.ev VeteV'Ministic eq,(,t(ltlOr'\$

NeW GIOWttA fVloettl:

A~SUfV1e, At stuble s~e{(dl( gt-(;t1E~,:

Yt ::=. fCYt-1) c.::',

::: (fcy); + f'CY)(YH - y..) "~ . ­

~ 'e:;).J ~~ Y- fey) ~/';-l-(f~g)'}yt_1 s\ov'·

! ,f('i> -:- --~~ ~ .:-j-=-...::.-:=-,-=-....--".----~r ./" ' .

I

IYt =' 0. -\- b Yt-1 I I i I

Yt :: fcy,):{) + ty(v,x). (Yt -,- Y) + fl.«(v,i~J().(t-~)

Ye = fo,~) - fy(Y,,~,,)y- f"CY7):i»){ + fy(Y,;()Yt-, + \. "----..r---/" •

---v--- -~---• CbPi ~ed. COYlst-a.,l,II,T­

"

0-­

Y ==' Yt;-1 ~

y -= Y, -'/ : a+bY

Page 36: NoteRBC (w/ MATLAB exercise)

/

If 1'01 ~ 1

'It tv(lver~!' +l> a 1-b

o.s 1,'-'00 'i y"

1.f

1.r -1 '­

'0

'0 4

L.. -1

0 Yt

Y-l;

eonve~$

e;tive~S

• ....,­

Page 37: NoteRBC (w/ MATLAB exercise)

gc;

b) R~t, Or(j.e~ Stoc~~ttic Eq,l.latiC'yi~

).( € [A 131 -;) IV1trocllAce Iike a SV10ck lV1tv tVu. c;;:¢efVl .. ~.

iVle 1){~tri~\AtiO(\ in -thiS loouVlol Vlevev CVtaV1~. ~ f (). Markov j?me-efseye. ()

If Yo IS ou~ldt. tW. rnte-rv",1 C ,/\/\/,

[ ().+CA , tl+CBJ 1-1:> 1-1::>

~ "0 YH l y" ~ -') tW. i{lt-evvcJ IH 10Y1~ t\~ 0,( b.e: 1.

" l\A1A~~ \?e. ;(\~~ "",is \oo ..d.. If A~ 0

A<.SUMpnonS:

'It) "l-tt i~ o.rali"VI .(}OM 0. pf?Jb. c(1s-t. tV1Dt is' jnvavioV\t t\t1rouBVt tilVlt.

i~) ~ parCHVI@,tey 0 L b L. 1­

~

If (i.) 0'( (iD ,\; violate~ ~) it1...t MOcW.. will flot qeVl£>,ate. ex smtyoy)Of~ dtst.

toy' tVle va Ilit e.s o-f ~ eVlcl09 eVlOUS va v1a~S.

~oll,ttiOYl~ To Cho.rz;lcJeviu ~ se.qul?nCL tY,~ in Terrl.1S of f).(1;~

U(1ole"v COYld.ifiOYlib on I'7U1c/O/VI'l/').{t =) tftu- prol? dl'st 0f 'it (!oYlVer¥S to en1 invariavlt

pr-ob c{cH vy tW- IllteiVoJ..

Page 38: NoteRBC (w/ MATLAB exercise)

4-0

XC) £ettLAenug ()f ProIo~loility Dlsm~1i£>V1S

[lot :0 (). + b Yt -] - NO(1&-+velttt<Sh'c PI fferen c..e eQuC{nOY1

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1/

rep(('SeVli! tW. Prob. tC1at- Vt; wll lie in iVle s~t S CIt t

qivetI\ 00 info +VJo.t Y "Yo cd elate 0

... , -'. t

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, ... ~ ..

Att-:;.'2

1Yie~e.. caVl I?e ('Oi1S1'tucJecA. y-eeuy'give.l~ ~(;yVl t!A.£ know\') cUsts of' l ~t ~

If Ibl.( i =1 tG-t (SI'to)l:=l c.onvero/'~ to aVl if'lVo.viaVlt cli$t.

l'ilYi GtC· I Y,,) = G(·) V Yo t .. oe

Gt(Yt "' TI tY5~:=O ) As T gets lar¥y =) ; nf about tht.. vollAt of Yt bl2wiVle.s Iess useful y ~olo

li.:oe G-t('i4THY.~:=) = GC·) 9

Page 39: NoteRBC (w/ MATLAB exercise)

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Lt./

eJ SoLving Hi~\1eY-Ot'c;teY lAnea" MDd~l~: .

~ SecDYld - Ou).e'f ,Avttv (e0 (e.)s i,,€' Prvgn:trvl

//~

'f'he, n()+tAnJ. geneadiwlioV\ of tW... Y!fS-f-Orclev G't()aI1OV\ Cp· 3'1) is

(). lb1vcho.stic vectoy oiffeYG'nce eqVlatioV1.~ ( \ [Yt :::: b + AYH + C XJ ~~:: [, ::: :'~1 V:::,":ee:;:~: ~ndOM v

b ~ n >< 1 vectoy of eDV1St~V\tS

A J. C = MatyiceS of toetfic;evtts

SecoVlcJ.-o(ciev ve.c,tvy ~'1ste(V\ :

-IZt -::; b1 + C1 Vt-Ai It-1 + Az 'l.t-:z. -+ ] j

1Vle~e SeCoYltl- Ordef vec+ov S'vste(\l/g ave eabill( Vltinoled aG -Arot-ordey- vecto(~ysft-s

by inuea~in9 iW. olifV1eVloioYl of itu. S'tate vector avd (Qdetlilf'''& varjOt~eu ...

lY\ ttu.- Ma-h1ces s. vectOY al?ove. . •

1VtfV1, Yb -::: ~i +~'1t-, -I- CVi;

kev tv DyIWIV\',G q\{~ref'l' " va(uR.t- "}is tll~O (~VI e,¥Vl /.

II-'s ,'lot je,st ,1. S\()~, \:M \

Page 40: NoteRBC (w/ MATLAB exercise)

~ The \?ev,o.viov- of tin;t-ordev- vectov- mode-Is is tOUl'1ct by deco(V)pO~in9 tC1.L

(V\o.tvi X £ytteM '\VIto 0. set of fi(st - orctev- equatioVl5'

Ei~tV\ vfA.l\,tes -:::: ·~V1orac.teYistic roots"

~ poYaMetey~ tVlC\t gove\'Yl the. b'tav'ility of' '!tie. tyste(Vl of ~ql.AC\tiOVlS

A :: 0.. SColo.'Y

, i

'2.1"'2- tAtI.n1X A

e1efV1ell\'I' of A

A tollection at' 2 vec.tvv £ "") Mtth1>< A -= [~ ~1

1 1..

~2

1- --------- ­

~-i-

Page 41: NoteRBC (w/ MATLAB exercise)

1/-'3 Zq 0/ 09

AX - ,A T" .x = 0

(A - >.. I",) X -= 0

- Ar""X A [~ ~J [::1

\0- 11 o-)"

L Ct Z\

.. ~ ..

1$ \!lOMOIJlVlet'US eq~Cl.J11lVl qyrte.tVI.

=) ~1(l91,(IOt~ MCdYl)(.

iI' V

~ ....

=) (A -AI",)-1

eJ<1~tS

rvOYl q, i110 v{ Ial"" MOt..fyl)C

~

-1 (A-Ar",) (A-AI,,) x :::c 0

X -::- 0 (C<N1+<~diCtVM)

Page 42: NoteRBC (w/ MATLAB exercise)

I.A I qeVll?1Pctef> '1V~ LllJ.Cll;{rzl. hC et(,uoJiOVl Z-'('2,.

C\A-"'\I~1 =

JA' - A({;t11 + an') + (A11 Q Zl - o.1Zjl2.l) ~ o f l/ \"

la., \1>thtVl, we, qo t A /\. ('l vllues of' ~)

-Htle((!., ore also Z Ii flea'lll.( cttp~t

et(ua\i0Vl5 ill tW- 'eAeC't~~ o~ ~t -U- ~

o.eterl'mYie,S ~divechDYI.~ ~~

VA;! ylA. ,

c' (Ay~ AY1

1· , ~ Yt-1

YL = b + 0.. Y"-l

I

6' b yb '.I.

A Move~ ev€cr pO;Ylt to ().. cHffeyent poif)t blf flu. ~Y1sfvrf\llc:1.tiOY\ 'I ~ AY. z.x2

Poi i')fS thoJ line.. 0Y1 tht eiqeVl vectors Y Gcre MOVect in a spec1cJ. waif,

~

Page 43: NoteRBC (w/ MATLAB exercise)

b) Hi~heV'-Oretev Det€Y'f\I\irtistic f''l.tA.O.titmg.

gOMe- properties of ~q,()O:(e.. fV\O.mCQ,s t ti1eiv- oppliCCdioYl h? dif'feYeVlC£.- equatioYls

f) It A is syrvtrvtetvic =) tt-1L (Vots of A ave., (ecJ..

(Otv,eV'wl}.{.;> tVt.tl{ MCn.r be, eOl1l1plex)

2) If %u. 'fOot~ we c-olVlple)( ;:;.) ~I.( MCll( 't/e- "iVl~ic£L" 0'1' "oLAtsicU" tW uVlit evelt,

1{ M roots ore re 01. =::) "ls > 1­

(J( As .( 1

3) H '\he. roots are..- coMpleX" => titLcAI COMe. in C,Orvlple)( paiY"'s

S<. boiiA roots of Ct poiV' are eitv,ev "iV15"ic;U" Of 'o/Atrid£.

+tv (A l1it C4cl.c.­

1+) Ii all (ocn$ ore "iVlSicU" 'tCu l)V\'lt Cl.(c1e,

~

5) If fVu. roots aye "ou.tsicitt" '+W. uvlit Clfc1e.,

~

b) If 'ttv. svsteNl Vto.s at leCt~t 1 rvot t!-1.at IS' ''outsid.£-'' ~ uVlit tL/CIe-,

:j

Page 44: NoteRBC (w/ MATLAB exercise)

4h

Y-t = b + A Yt-1 .+ :cx-j;;

,

A

IA1 [ .c 1 AI.\ ~ 1­

1 00

o ).,,2,: o· ~ o 0

> 1.

1V1 (). ~ecoVlcl.- Order SysteM -:;;) VlClS 2 solutioYls', ,A'" awl Ab

~) itO ~ ,As < 1 ~') tC-u 8Vsh?1\I\ eonllef¥S fV\oflotoV\i cCtllL( to

iW- steCAett.( gtate-,

2.) it tW- rvois CAve ('j)(\I\~)( ~ lie, "

iVl~icV.,II tW. UVj·lt eI...-cle.

~

3) If at lQCt$t 1- root IS ne-~a\-1\Je" bAt both IAs I '" 1

~

theYl} tf,\,C.. systeVVI w\1\ flip troM 1. sieLL Ot itu steaC:<lf ~mte to fC..e.. ot0~v­

Oes It to(\\}e(~s.

Page 45: NoteRBC (w/ MATLAB exercise)

A source

B) Sf ftI.L roof) Ode, ComplQ,)( & lie "outrioll' "tt1e- uVlit Clvcle-9

~

to) If at least 1 root (~ negCtl1ve-J !:Mt both IAsl > 1 .g,

~Vl/ M sy1;-teM wl\ -P\lp {YOJY1 :1- slott of thL gteAAtf ~tate to tf;u ot/llev

as It dive~s to 'rntiYl"I+Y.

@ H IA1 1 > 1 =::) 4iv £teMl.( gmte.. I~ cCt(led a CaiJ.d.Ie. PO'llt

1/\.z.\ <. 1- \ -Y; ..'\01 )..2. > 0 fVu. Sys+-efll1 IS UI'1~+ctb& foy- Cllrvtost- aLL Ivlfh'c'£ COYdil)e;r(

1

(unless *u- Ce-t of iYlinM eondi11OY1 s +Wet be9i(\ on tW.. ei /1.U1V(2(:!VV" a.,soc.iat~ol lIY t!N.. b~h.et.. et'~V\value-)

e~", Xt ~ 0. + £Xt.-1

4 \b \ L 1 => COnve(~eV\.t seq,()e~1CL tv SOMe, [0Y7SWV1+

l Ia\ :> 1 ==> Oive(~V\,t ='> outsiok tW w1it circle

(not (;\ wMer$iVlt sequ en(..£. uvJ\es s Jo =- 0 )

Page 46: NoteRBC (w/ MATLAB exercise)

.,)1

.... tI-.

c) V~ona,Ii'Z.ir1g SvsteMg of Nonswchasn'c e'luahoYlS

-) W Metl10ct of COMpl.khYl9 solutioV1 S by +1ndiYl~ linear COfV1vino,t1ov\£, of

-rmVlSttl'(Mea VO-v1tA~S,

NOl'\stvChttS+JC fl{[,(OetlOYl ~

Yi; = 'q--±~Y~-1 71D', '"'JJ

~ Oi~oV1Q.li2i~ A - by sto.ck,'~ 2. ~rqeV1VCtlue equah'OYlS.

'l l? • - Y a-t Yare ,n!hpetAdt.rl·

of e<>lO(" otLow',

~ .by t,\ncl ine )ineeIY &Jt>!VlflCthO'n" r

of tG1V1~f'vn"ed. \ioYiow.sLet Q. = [Y~ Vb] I I

is Ctcl-1ieved ~ cfiogo>1cJ'zAJ A , ~

\ "--..

0 l -1-~ :::: exA Q[A"() A'o

~

IA -= QI\Q-1{ . ~e(e /\ :; olia00Y1cJ.. Matrix of ei¥V1\1al\A£.-S,

1- WiI<cV\ derenli\iYie,g 'iIlSictt/OLA.fS'W.·~ l,{Vl',r circl~.

'1VI.e,Vl, d.e~\)~ G\. V1~VJ vect()v of truV1Sto((V]eet voriQ.?U s; "Zt

t< 0.. trClVlS forMe.d.. Vettov o.p c-oeffieieVl tr ;.. (1;, . ., ",

frOM Yt = '0 + AYt-1'"

~ -tyz:,,,sforMi'L5 •i

(~1_~ =: lQ1~)+ A\Q1 Yt~~/' '"

Page 47: NoteRBC (w/ MATLAB exercise)

"..

:::

4 ~1Y1(..[ A is oliCl5onai ::::) eeculA of equa.1iOVlg is' inole-petAdeV1t tOt ttu. oit1e-rs

-') fue eql,{QlioYlS Ore 'ScalflY" dfffeveYlu et(~lo. noV)

-!> ECtllh, Z~t is ().. lintaf tDMbi(\a.l'ion. o-F Yt ~e(e" the we{~VJt-G of tke...

~orv1bino.tioY1 aie ttu. eleNleli\t,g Ot oYie of 'lOWJ of fuL I{werse of tkt. fV1Mvi)( [if

r(?t'0eV\ vec+-ofS of A

1J

(;fY)CL Q1 Yo/;'l,,- ­~

It = [~" 1"][Y J~21 c( y~: •

- tL Y,t Ii Yzt ( )([l,'l "l

'lzt ct'2I Y,t t(l.Y2tI" If IAbl > 1 :::.') Zzt ::: 0 ~") q,21 Y 4- 17..7.. y =01t zt

11..1~Yz-/; - Y1't

, q}~ . '/

Page 48: NoteRBC (w/ MATLAB exercise)

50

Z2.t := \

If =; 'ttu.. S\.{~teNl (;VJ1\ tonve(tp +u C-OYlSraht

~) ... "'" .. JIVM'jC MCfY\OroV\iCo,H1 'tn-Rn"itv,

0­If t=l =::-) t.11 == ~1 + A "l1O

t=2. -;;') ~1l ==- fbI + AI).. C~1 -t- )...CA Z10 )

:::: ~1 -I- A~1 + ()..o. /-c10

t:: 3 .,;:0) 1.1~ :::;:c fb1 + A0..[~1 + A~ ~1 -t- (A0.. )~

l10J r

i I

tl. '1 Q.)3 0

- ~1 + A~1 + (At:<) ~1 + ()\ l,o

0

1,-:1. . t

Z1t -::: ~1 ~ (AfAi + (;..0.) 11o J"O

Page 49: NoteRBC (w/ MATLAB exercise)

5.1

ertj Plcm Y1ev- eq(,tl libriutvl AIIDW.tiOr1

~iep 1.: Oescviption of fi.U1daM eVlttt:ls

~ The eCO(\O~\f IS' C!escYibe-d loy ~ follovvivzg fUVlctCliVleVlmls: ""'" .;:<tl'416\

t) PrefefeYl ce-,g (',ngmVlr-ClV\eous &. tntevtef1t1ponv uti llhf FL{VlCtiC'YI)

L~) tec,{rjt10 l09Y

iii,) (). tOflGtmint S'et.

~ f\!l(;:lvkets +VV' exc!tlul1gifl9 C01YJM odihes5' l'oYIrumeY'$' OY Ar{1llf O!/e no-t

expl'citL~ gpeci fied

-") The, pltlYlV\ ey CVtoDSes iiu. OpiitV1M tOrY/modity o.lIocanoV1 ')

\N,;& velyifl9 On trocU !< pn'cu.

~

1Vu. p lCll1 l'lev c-L.toos.e-S - ClBWe9Clte. e..onS1ANlphOVl

- 00gfegecfe, cop~e- stoCk

1;\ LOboI'

PrvclV\.

IV\~to.V\m.n€ous Utility FUr1ction

IU(Ct)Nt;) - L09Ct + e,Jtl ,

Ct; :: o.qqregate... Con~uC\1ptJ'OVi

N-t; ~ V'- Laboy ~upply

.f..f L-e[svre ?

Fov CaSe Z Cl2o""ev 'S )l

Vaio
Text Box
Ch.3 : Planner Equilibrium Allocation
Page 50: NoteRBC (w/ MATLAB exercise)

Tect1Vlo logy: [ f O(~)Vi» At ~ K~ N~-oc At ]

(;bnstrtti nt ~e,t:

1) F~s;i l? ility CO()SfntiVlt

[C i + It - K: N~-c<J At I

i,i) Cttpita,\ Ac,curYIulat1OYl eo~stmi(\t

~t-t-I ::=. (1- ~) Kt + :r t {

{;vV1eVe.- 2J (; [OJ 1J ::=. qUlAderle.r depreciafioVl rate

U,~) Leis-CAfe. - Hue..cr~ Ct>(lS+m;V\t c-nr~ CoYlst{(;lI/lt)

r~t+.1c = 11 ~v) AGSL{Me- tV10t ikL In"d-1M CCtpi-rM g-rock 15 po~Ih\le.- &- if IS g/Ve-Vl

Ko > 0

S+OC.VU;\Snc Prod,uctivity Shock

1At-t-I -::=- PAt + ~HI (

-vJ;,ere. it-t-, -- NCO, 6;)

rn~M~tlon : (<7..- It)

~ Ct , Nt, KHI ove c.Vic?Sen b().S"ed on ti-u. info L\vQila.ble., at tlfVl€.- t_ ~

corrlfol 'Ia.rial7les

Page 51: NoteRBC (w/ MATLAB exercise)

53

~te.p Q. : Objective, rc.trlC:liOVl & Constmit'\t ~et

~ It's c-onvenieVlt tv reduc.-e IYllAn-'pulate. +i-ct Co'rJstmin,t get

D EliMi nette ),t In tkt Utili-h-t fu

- by QubStitutill9 -f'tOrvl +-kt L-e-isurt- Hour!" Cms-rrnlYlt into IV1SWVlTUVlOUS Uti/~ F>,

!lA ( eli, Nt) = l09 C-t; + 13 C1- Nt-) (

<Xl 1-00 .c/:; + K-t+1 - K t Nt At + C1-~) DC E Co, 1)

At +, = PAt + "1;.1;+1 St+1 A.- N Co) 6~)

Ko > 0

Step?> ~ PlanVJev OptiMization ProbleM

Pletl1n-ey-'s task ~ To jVl"'r1i(\t1ize tiu..lnteYtf'(\t1pOyAA LJt7I'n.r Df Cl r<epreseVltcH7J£

CoY1$ufV1eV ~ubj eL-t tv tf,u. CoY1.st'ru IYl t- J'e-t.

-!:Y

PICmVley ClttooteS equilihqv(V\ a~q(etJate. q,tdintities fV.- tW. e-J,zole econoMy

£t· Ct + Kt-tl = K: N~-oeAt + C1- 6) Kt

At +, ~ PAt + £'t+l

K. > 0

=

Page 52: NoteRBC (w/ MATLAB exercise)

gte.p '+ FOC&

Ct :

Nt ;

K-t.tl :

1 Ct

.1l (At'),_/

-==

=

=

~] CAt) (1- oe) Kt

oC

N;CX)At; ',,_/~

~ Et [A t+1 [<X) <:-,1 N:~~ AH1 + (1-bJ] ~

TVC

. ,

IJ

111eVlJ eliMj YlCttlY\9 At" ='> PlclYlYl.ev­

1tt.t follolr<ing eqIACltioV\S;

ettui liWvJV1 I'~ ,chafGtctevi'Z.e~ '0'1 f I J

.1­C-t"'

=

TVc o

Not~ There eire.

f".

S

8

eq,.LLtdioY7S

vaviables: Kt , Kt +1 , Ct , N-I;, At;

-

Page 53: NoteRBC (w/ MATLAB exercise)

58

~tep 5 : "J:Vl+erpremtiDYl

LllboV'"- Lei'llft Cl1oic..e. 00 -00

B - ( 1- DC) Kt Nt At(Jt )

f ~ t

o~ v.\i llR-( M PI.. . MU~~ U1i\flv1

\DSS ~ of

Labor '-­

Vt11f.h-t Go.i(\ sn\ib\\t'l

-) OptiMoJ. proviSiOYl of Labov is 6V1oseYl bll eq.uC\.tiIl9 tht COS<Atilikt of supplyitt8 i Move- \.Arf,t of labDY (0) w/. tf,u (VICtV'-oinAt 1 pro{}..ucAivThj [C1-oC) J.<;N-oCAtl

\tJe:l~ntQd tNi'th ~ /VtuCt

-7 This eq,uanoY\ hold.s on 0. peviocl by period. ioClds-,

gi I)C e. It ctoe~ not i nvol ve Clny expectetnOVl to" fV1e, N+I,A Ve. ,

t MUL ct-J

lJtil~ loSS

-7 -1l1is c-onc;fltion eq,lACttes, at t\tle M~Y~ iV), The. ufr\Hy loss at -nf\lle t

(c{ue to postpoVlifl9 tv next peviod 1 tAVlit of con.l'Uf\Ilph"OVl) :J

~ itJe v+it"d\.( ~~·'n 0+ tllVli- tot 1? -r-o.ki(\9 ·Into account fA c{iscoUYlt

-to.c,wv ~ IX. tVLL (e.-tu(V1~ -f}orVJ fywestin9 thClt conl:'UiVlphoYl un"/t.c; I~

~ Tvle elJt!eY'" Eq,uatioVl dnves rVu.. plaVlV'lel'"'~ opn(V1cJ. CoYlWlVlpHOYl &. ,'fIVesi {\'IBVlr

(OVlet itte<ewy/l. itu.. copitM ~iCu(\ltlAlQtiOY\)

Page 54: NoteRBC (w/ MATLAB exercise)

5b

I~lAPPDU;,- we" cue 0'" pOlioci to·'.11:; T

- CO()~WV1eY.l 9;v/2- up 0.. un"! t of ConsuMption

~

Vtili~ Loss = (1-\ \Y

II . V

00-1 1-OCvWllvV\ has MP = CO Kt 1"' Nt +, At + 1 - ~

~

o 0 TOMoy-yOW'S expected. retu(t') = Et(ooK~~; N~: At +1 + 1-~) Wvlev€, Et :: expecto.hoV1 opemtvr} COYlcfdioYlcJ at time, t info:

o ! '

'The, pr~seV]t d.i~couV1t vcdu'e of UtilHy GC1in

~

C f (Kt ) Kt + l ):::0 (t

C-t+1 ::: f (Kt+l, Kt +2.) r ~

1}]1$ \s ().. Second. on;ler- £tov~asiic Viffe(erJCL e"tL<&ttlOy);1 IAlt1t'GVt 15

oHeVl Callelt Eulev fq,ucd;OYl,

Page 55: NoteRBC (w/ MATLAB exercise)

Fea~i b'i Ii1'( Covtstmi nt

[ G~ + Kt +, == K: N;:,'" A"t + (1- ~) Kb ]

-miS equcdion tells tltlat tt1e ?1C\V1Y\ev- ()~es e:tll yeSOl,ore-es C<.vai lable. IVl

~ eCOYIOM y .

?Jut If -tYJis FeaSi'oi1i'1lf COY1~taiiV\.t l;Je(e VlOt ~atisfiecl ~ et(uaITft-t,

+hen £Ol'Vlt feSOUYCes WOlA,lci Vlot 'oe wed. > .

ConsuMers e;tve Vlot Ovl tltle'lv- bVlct0e.t Ii V\e.-,

-Vi

•", A-, lOI1~ Oes titleve.. VlD btAcl ~ DOOI..S (i.e. poIlunoV! ) :;

COVlIU Mevs wo(,(.let lot ~t1eY' off by MOV', r19 oYl tltu. btAct9M line. -' i Ci;

Iji1uCltjOVl Cl ,'os.! stlA.

"Tntflsversalit ConditiOVl (ne) - Musr be f(lilpoucl ?,I) orct..ev-tv (iAle 0lA, I­ce vmiV1type.J' Of etl'.i'lib1o

o~~~ ~T (~T) KT

1 /1fI %a.d.ow ~ (,t. of K. ~ 0 ':71Yut-- !;..Ie. ass~ u'/ili'ht if. Srvictly

/ en cre.£!'1'Y11j . // ---') we <AVe. gOlvi~ QVI 'Infinite VlOV"ZOVl pfVblefVI,

! ~ .' ... I f Kt ~ oc ~ \ WQ, ~V1oulcl p(eveVlt titlcxt 1tle. CtApircJ. stoc.k -follows an Q;<plosive ptAttevVl"

~ ~ ~ TVC E?V1c;u(e.~ *tat explo~ive poHeY'S <Ave ex:cLvtded 1YO(Vl bei (l~ aV)

eq,udibriulV\ sollAhCiYl.

It 's V\O+ worth occurVIvdcding a. so lox~ OrvtO(,(.V1t of ~apita,(

( ~i(jU- its' p-tJ'et. = 0 -:;:;) iW- stock Vlt!S litO eCOYioMic vcdvu.)

1h1. deYivettion of t(,u... TVC is preseVlt-eet In LA S'e.PCHPte. se.t of V10tes .

Page 56: NoteRBC (w/ MATLAB exercise)

e~t'f~ Competitive Equi\,bviwVl

~t€-p 1: DescviptioVl f>t the f3CJJrlOtll\y

-'J In -rhis eCOYlOMy;; ft1ere, ('AYe

{i(rv1S

VlO(Vl0gevlOU$ gooel,

-> CoVlsUlVlerS" g, {1'('(Y1S tro.c:lt- comfVIoc:fdies 'IV) tke- vaYiou$ t\tlavkgts fbv goods­

~ ".""pro", Inputs,

OvNl itu, eap', tcJ.. stvvk

l""eVlt "1+ tv t'w.. PivlVlS

guppllf laboy tv th.t +7r'lV1S

- ctervlClVlcl COY1SUf\I1pti"oV\. 8< jvwestMeVlt tj0ocl.5

, !

deMand.. ot{pi-r-cJ. Gtvck t. Iol?OY gevvius \ I

gupp\y t~e vlOMOBeVlO()S good (c-t; g. It)

~te,p Q: CDnslAYV\er-s

~ COr1S!A(V\er,s o.ve lAV\ifoYrVlecl.l~ c1istvibvtted. Dvev- tvJe lAVl\t '!Vltev-VtM.,

~

!vIsmV1taneo~s Uti Ii n.tJ1oti 0 r\

Y

l). Cc:, .-e;) = L09 .c; + B "it

/rJIIeve, B > 0

IV\ter-teMporr:t1. Uti Iity furlCfi'an Y

lA ( t.c~ t:o ' [~tf:D) - Eo !o ('t (Log.c~ + B l t )

hVl€l"e, (3 e (OJ 1) ::: of$" C~,lV1t .friIc;n:w As> v.M e., edl C0>1sutVIey£ V1tA.,Ve, +W SCtrVIe. <;ubjeeJ7ve. cHSCOUVlf" factov

Vaio
Text Box
Ch.4 : Competitive Equilibrium
Page 57: NoteRBC (w/ MATLAB exercise)

Ccrlstro.iV\t Set:

j,) FeaSibility Co~stmiV\t

[.c: + L: = w~ V1~ + Y"t k~ I v===::>

t()YlS"'lIV1eV~ InCOfYIe-.

~ Wt n: WO:JL toil I

r~ k~ == YeV1t7~ e.apiTovt ~toCk W 0rMs.

~ &nS(,((1I1el.Y tttke. P'J'CQ., VVt ()Mol ft; OS given.

~ -e; Cl;v\cl C~ tlye.GlttoSfM:OU.tof'+w"S'ClMe.. q,uaVttiht.:'·

CfVleC{V\s/ Output y IS nOfrvtevliz.eot -tv Vl1ili~.; y;:.c.; + ~:

ii.) CapiW ACCUMUltt-noVl CoV1.Str"{,liVlt

f kt:, = (1-6) k; + ~~ I t,J,1e re 2J £. (0/1)== o{),{cdterll-( eopfu<1 cleprecianoYl mte.

k: = tVu capiW ~tvc.k. oW\'led by 'Y-tV1. COYlSUMey­

~~) Leisufe - Hot.trl ~t'lgim;(It

[Vl~+/C =1! lV) AssuMe/ m itl,tia.1 r:apTW gj-OCK. ;~ poSitive.

[(¥ > 10

\J) ~Wcl-l4Stic Pmduc.tivitv 'lttoc[.(

.rAt 1-' - PAt + ~1-1 1 Wvie(e St+1 """NCO)6~)

Page 58: NoteRBC (w/ MATLAB exercise)

rnforMLl.nOVI : (oy ~;)

~ .c::; Yl~ ) ttVld ~k:+, ctve,." CVioseVlloo~ect OYi itJe info Met-do.ble, !At tJ'l\I1e t \ -v-..I

Conrro\ vavlo.\:7les

=

Ai; ==

eV1(;{0Bevwus q,+ttte. variable.

exogeVlDu5 bmte. vL\viabU

£tep 2A: eonSIAMey'S CotllStmiVlt !'et

~ It's coYlVeYJieVlt to reduu rYItH'lipulCtte ~ cOYlstrz;tint £'et­

, ,

,,

Y y-ct + kt +,

A-t+\

k:

=

:=

'>

Wt V1: +Y-t;kJ + (1-b)k;

P A.., -+­ ~t-tl

0

S.t. y

L t y

+ kt-t,

At-t,

kY

"

-=

>

IAI..,ltl: + 1'".., k; -+-

PAt + ft+,

0

(1- 6) k;

Page 59: NoteRBC (w/ MATLAB exercise)

b1

~t~p 2C:

Foe: (1)

Ylt y tzJ

= ('f)

T\!C : o

el;MiV10Jjf1.~ ,At :» [oYlSi.A.fvlef'S l?t{u[ik"'1V Nl is- CLttamctel1zed 'o.t

tkt tolloLN1Vlj W1_.~;.::.et.:-i --.+i-.::.'0Y1--=.~_:

e,

TVC

'-.----~-~-------------\

f\Jot~ 'TVtere. CAfe 5" equanonr ,&

5 VClY1Cd::;de.S

Page 60: NoteRBC (w/ MATLAB exercise)

Step ~ : Fi (tVI S

~ FIrMS O:r(!, I).Ylifol'rY1ecl\~ c\iSTv1'outed ovey the tAVlit iVlteyvcvl

L.e. f € [0,11

- lol?ov c1e(V1{).Y1a

&\ Investf\1eVlt clef\l\ClVlct

"Foe:

('-t; =

~~ l}; CoMp~t1tive. l;q,lAiiilt'YilAlV\ \)efinitioYl

fs 0. Get Ot tontinl)OUS pnC£.- fiAVlC,tioVl /Nt, Yt suc.L,-, tf;,aT

1') tonslAlVlel1: ave. MCt)(it'V\"\zin9 [)ti li~ - (b) holds

z) 0rrViS elVe., MCI.l<iVVlizinB prvfits - (7) VtoJdS

3) All MCiYke+- e"lear-s ;

UJ Cupi1d-~tvGk MClyket ; ::i k: ctr Sk! d-f f

~LLJ Ivwesfl'VleV\t MCi.vket: J~; eX- y == ), If et t y :J

Lv) COrl s\)(VJ PtiOYl j\/\()yket : L.c; Gty ) .cf elf := f

Page 61: NoteRBC (w/ MATLAB exercise)

b'3

Co (V1 pe:ti h\le., l7q,ui li ltMUIV\ IS elttCtt'ttc,telizu;l Ic.t +t1i -to llDWiVL~ . ~clinO)/l ~

16 = .i. //VI;;.£-[

1 - ~ ~t [(~tl) (YH1 + 1 - 2J )] ;:..;

.c~ -+ k;r, - tA!tV1; -I- Ytk; -+ (1-b)k;

~ /' TVC 0~.r:; ~T (j;) k;..l

// At +, - PAt -I- ~-t+ I

!

Gft Gfreew-\:; =- (1-oC) V"t ,Vl t At-

r{, =: (J/r- I GfcJ] t; n-t)HC At

rhl :: at! L1t-t1

kH1

Page 62: NoteRBC (w/ MATLAB exercise)

Ct-i.5: NoV"! lJ,tvchostic £tettcA\f gtate. (NSSS)

AJ OeYivanoYl f)f fA NSSS

~ WrJeV1 we, <;olve 0. dl(f\D fV1i C MOcW !At (ASing Cl Lo~-~ln€aV" Appn"ciMtl+ioYl

~

~ NSSS -:::: tVJeve.. rs (lO uncevtCtIVlty

r At ~ PCA) =) A]

~) NSSS fDr- ttu. PlaVlnev- Cq,CA.i li~Urv1

-) EClUililv¥iLArv"I (<; GVto.~ctevlU'd 10vr tke- ti?1l0wI equcdiOYl S ;

g =: _1 (1-00) K: N~oe At (1") Ct

(2..)..1- :: ~ Ei; [..1.- (oe K::,' f-J:7 Atl-I-+- '1 - 6)1Ct CHI

Ct + Kt +1 = K~ N:-oo At-+- (1- S) Kt

109 At+ , - (1-p) l00 A + P L0C) At -+- \vt . '-..J .

) 0 :=: liM E{i>T~) KTJ ,/'f""oc CT

/

//

N!1ere, ::: 1Ai\t]lte vlOis- e..- Ar"Vi

Vaio
Text Box
Ch.5 : Nonstochastic Steady State (NSSS)
Page 63: NoteRBC (w/ MATLAB exercise)

b-5

,i1".rV1

iheV1] Ctbstrv.c.;!l'ng frOrYl ~ 1VC, tV1ere CUe. -:5 etlucdiOY1~

- '3 UnLMO~Y1S: CT N- K I , " TT

I~S [ ]l~ = C, N, K] NSSS Ve(;l-ov

c) TVVlPOsifl9 (). tJSSS

1) E?11(vi'IYlIA+-e- e,Kpec,t"uhOYl open;d"OY1

2.) \)<l)p 0<\\ bU~Sc,vipts,

o se,t?tll voYiuWg - S!; value.£

2; <:SiGVlp\ify t solve ttu UYlk,vtowYl (c) iV, K)

os (}v -BAVtchen of p0((il(Y1 ete<j g p(edeterrvlInec{ quuntities

4-") Ar;suCYle; A:= 1

~

- oC --rXJ­1 (1-oe) K N AE

i

c

t;.t€tP i: frOM tke- euler- &quatioYl

CSlil(J., A ~ 1-)

f1 - oC ~ )-1 + ­1 2>

F 1

Page 64: NoteRBC (w/ MATLAB exercise)

ConsiCUx tht- capittJ. A-cC!Arv]lA\e<.noYl CQfl.stIetiYl't": - h-oM C~)~tep '2. =

of:

C ==- K N1-"" -Sl-Z KoO 1-01:C - f'I - ~ 1Z - ,KK

00-1 1- 011

f. - K N - S K C ::: (~)OO-1 _ ~ V....

-C - K(F-a) Cq)

Step'?> : COYisickv Cb)

-::: 1e C1-00)~)cO C

-~~ !3 :::: .1 C1-00) F 1-"" (IOJ

C

~+ep q. ~ £\A bS ti -Ivt e.- een Into (10) - ~olve- tDy K~

F ,:.00G -:::. .-1- (1-oO) .- -$

K(f-~)

-.5!2­K,-

~ -=- 1 ( '1- OC) F 1-"" (r-6) e ­

~o~ve, .fay N· ~ (1)~

=1 c£t~~1-o&' + 1 ~ (:>

~ ~)-oe - .1.+1-cS (!I

G+ 1- a) ~1-~

j....

~ C+~;~·r K

Page 65: NoteRBC (w/ MATLAB exercise)

C = KoO 1-IlCl C

N - oK.

Ctep 5: HSSS

K

N

VeCTOY

1 C~)= F-,b -B­

..1-:1-00

::: ~+~; ~d)

- -;2?­F 1-.0

K

C

-I

y

:::

:=

:::

00 1-aC

KN -c\K

~K

-00 -1-OC K N

Page 66: NoteRBC (w/ MATLAB exercise)

4

Ol-t b =

Lc>~ - LlneClvizanoY'

-"r DfteV1 c1YlL1CY1J/ eCCiVlOMiC fVlod£,ls 6 Ve" tvo oiHic(..d+ to $'olvC,,; % tf"u.'f involve,

0.. SysteM of VlOfl-lit'leav et(UlA.tiOYl.r ::0) S'ollAh'OYlq does not et(i.rts

~

IVII (/ V\JO-lj S tv line~,rju fi.u. MOetd..;

T,,) L~tmi£jl.tt) UneCtyiz.cdioY1

it) Lo~ - l\neCtyj ZOJiOVl

--!?

mVi/ 1) vv~ e.OMpute, 1'W-- SoluhoYl (lulVley;c.cdll( Ciet ttu.. C-O/)l\putev .folve­

\'W.. ~vste{V\ Df eqUtltiOYl g -BY" giVe-Vi pan;:UVleteV" .1',

:2) We CtlVl Ctpprz.>)(;~te. tVu. MOeuA Ot( well CU; pOSJi/o1e- by c< fVlocid

thClVl we. CCtVl &,Dlve,

qel'le@te~ e><p(essiOYlg 'In term\? of e.{a$ticiti~.

er. P.-od'" e{oS he-iti e..s

'i,ubStitutiOVl elasticihe-s

~te.p 1: lOW d<zy;va.tive-~ 1L TGl'llcw f:x avzsioV\

(Jy = afcu"u .• ).-t'I1) d).(1 +.~.+ ofc).('"" .• ).-(.,) O}(no)€, d~n

PI (,4:J ffoM (2.)

1 =­Ct

~At gt-eaetlf stuJe.. : Ct C-t-t-I -== 1

K-t -:::. Kt;+1 K.

-:;> Fa.,..- ~,'Mp"'Ci1tt:J 9et (\It :;; .1 VtNt == = N"'t+ I !Nvu", lo&-II>7eclVi2-tiH~

~At At +1 - i

Vaio
Text Box
Ch.6 : Log-Linearization
Page 67: NoteRBC (w/ MATLAB exercise)

1­~I 1

i (b~) [oOKOC-~~J&41-bJ Y

~ Ge K oC

-1 + 1- ~1

i

O-lj­

.0 0-2­ ::. - ( )

00-\ ~ oC oo-,'K

0..1. ::. - ~oC KoC -

1

01.\: -=

o.s ~ KoC - 1

{).." -;::. - C

I-<­

Page 68: NoteRBC (w/ MATLAB exercise)

c

~tep'Z ; gfo-ndQ,rd MltfflX ForM ;) ,Ei¥nv~lULS'$,., Ei$t'vweofo,rs '

1 0 Ct; 0-2- Cl.3 Ct'l-I 0 <i-t'l-\1 a~ a,J

/I /\

CAb o.q. K,. 0 1 0 + f) o 0 0KH1 WtT/

0 0 At 0 0 1 AH1 -1 o 0 0 w"t-t,

I lrJA

~1 1\ "­

WI

Ao Yt; /

1 y~ ­

rr.Mo€vt

1Vl(~ ghows tVtClt 1tu Modt,.,1 ckp.eVlQt,!' OYl MD.1Yi X' A.

~

It's COYlveVlieV\t to eulculo.te., E'¥Vl val(,{£-S of' Matrix A

(A - I).J 'I = 0

we V\lj.ol \ A - I A\ - 0

Ai, L i :=:) 'lV1sic(;.. tltu- ('{Yl'lt cive-le,

Ai, '> 1 ...;') ou:tsiclL ttu.. unit civc,te..

Page 69: NoteRBC (w/ MATLAB exercise)

92

g-tlf~: . rordan OecoMpoSHidYl

-') l)ec..otvlpo.sitVj MlA1Y1 x A

Frvrtl (13J

Yo\; ::. A'Y~+I + .B wt"~J ...~

~ ~V,,\~ e)(pec..m:\0n<; o·~ c.oncti11on on tl'Mt 1:; lnfo

[A L­

.~.A

~_j§I\~-')E{;'i~1 -1

:: 1\ IS Q. Yt +1

le..+ Z{; = Q-'y{; = Q Kt-f'lA~ ~

~\ Z{; 1\ (;:t, l-t-+l 0·b)

r1 . N 6_1

A, E", &.HTI

~Z{; = ).2. E~ l:z.t+1

z.>~ A3 Eb "Z!Ml

I

qu" ~

/ -1L = I\"l -t :::. 1\ G! '{{; [l.., ­0

2!t+1 = ~, A2 ~lrt -~ -~~ (~:J 3 q,~1 1.3'Z. l{.n \t:y

C\-:rjo 0 t{,11 Ct +'l1~·Kb + c/"3 At =. A 0 A A A

~ A ttZI Ct; + C/,tz V\t .+ 'l..·nAtB D

]f' , '1o 3 " A I't{,l,\c t + 'l.37,. K t+ q,J3 At

Page 70: NoteRBC (w/ MATLAB exercise)

~te.p q. ~ L.AW of Itamted - ~>cpecmtiov.t S -

l~ = 1\ Et;~~ - ......,./.

i CHI = 1\ E-I:;+I 'l-t-tl.

~

"It; = f\ Et; (/\ Et-t-I Lt;.;2,.) 2­

== 1\ Et 1: t-t'l ­

~

7 "T

t = 1\ f-t It-t''

£-te.p 5: TrvlpoS'e ~strl:tint

'RrJ(Vl (11") :

I

2.) If A1 > 1

~ I

li-tl = A 'lot -1 AIQ-1 Y::& Y-t~1 t

\I --"7...i. .·---v--·-·---------­--~--~./

( '111 Ct-tl + 112 Kt-t-I + q,1'!> Avl)

L ---y-- ~

::: 0 . >M C£ ).1 '> 1 =-) ;.\.1 i-? ovttri04 -ltu. tArI"lt 'Cifc:,\ e. ~

z,t..,::: 0

I

Page 71: NoteRBC (w/ MATLAB exercise)

g~ b: Vec-\oy A"';to(e~(e$sioVl ,g PO\\~\f (1.((1CtiOVlS

Gu.bSl1M.1e,. (\~) '\(\,To (12.);

~ [a. + a'~)J K, +

~ 17, .

~ A A

KH \ -::. \o1 1,1(t -\- bz At

10I~...l ~

_1, bJI~~ -\- 1°1 ~H'ClAu, ] lo rJ lA.l l1 1

iZem? At +l ~ eA", + (".+1

() 0 The L.lwJ ot Mo-noYl of +kt. gte<:t"e" vt~xjClbU--5 In f!tlis (V10~·

~

'ihe,Vl/ tW. evolu;tioVl of tkc. yeiVIo.iYl"Vl.B vonaWt D.ye vttte1w\IVleet -I1rJyoVt~l.-\

+W. tollow\~ '" Poll elf funcJiOVl S "

ct., Yo, ,,) =' If [t1 ~ttp ~: -rWlp~lse, (<~r0rtS~ fur'\C-nOfl

~l.ApPO>t-, 1;Je. o.tt \n"re(e~teo. '1(\ tVv... d~no.(Y\;Ct "MpOl.GJ ot ,-tiM€, t inY\ovaliOY\ tv

/+~(;\t)ilO\O~;CcJ. 0V\o.~:~t =) Impact of £,~ OVl K"i"1 g. ;Zt-t-I

g:l -- [: :·1 [~1.~ l~2l

Page 72: NoteRBC (w/ MATLAB exercise)
Page 73: NoteRBC (w/ MATLAB exercise)

-

PrJ Prescott (l'lQ;5) ~ ~ Alru.ac{ () f- Busineg Cf{(//e, f\-1eaSuteM£V1.t,

Mo-x. Eo[~o (-;-1 (1-ep) k Ct· + ep ~L-(1-V\t)J (Ct,I<-t-tI.Y\tr.' ­

t-;.o

Foe:

\ e l k1 e - 6-1At t t V't

Kt-t-I :

\./v

--(1)

- ~OVl-L.ineav EquafioYJ 1-Vli;

l /(

TI'CV1e (tllO co..hoV\ ('lJYlo(inOYl -4 tM[g It!ovv iv itUDca-t-e, ~-w t.oVlslAfV1pnOYl g.. £t.1viflj

fO"to MO«O (rI,

111M) L09-line&\Yiz\~ orounc;t +tA.L ~eacLl{ state:

At steCtcl~ gh:de ; r::::: 1

ki;:::: k-t-t, :::: k

L.HS :

+ @~41 ek'-·(1$-(~~t Q~~)Bk'-'n'-~ - ~)ek'-'n'-® ~ ~' ~

Vaio
Text Box
Ch.7 : Papers related to RBC
Vaio
Rectangle
Page 74: NoteRBC (w/ MATLAB exercise)

A

K =- dk",t

k-t;

A Yl t :: etVi t

Yl t

" :::.D t d.c t

..ct

= ~ [1 -Q:L\Vltl)1=V1 l1-Vli·J

1\

'c't =

/I /I

kt+\ V-t -1 A /\

Q .ct-tr - A ..et-A II 1\

Vlttl Vie AQ-1

A

"It-tr Zt

A A

=) fJ:. e(/Mj VlUre.- ..c.t GlM.~ .-CHI

~ /I

11\", - ()..() k.t + Cl 1 Zt

~ V ~tt1.te. V•

.. .

Page 75: NoteRBC (w/ MATLAB exercise)

x0) gwckastic Vtc.tt'V" Viff~re~CL E'etuatiovt,

1Y. ~. b+ AY,-, + c;J ~Vldo"", y,

At t=-1 , '11 = b+A'Io + GX 1

t-=2 , '1 2 '== b + A (b + A Yo + C)( 1) + G)(l.

~ -t-l

~Yf, 2. AS (b + CXt-_S) + At,yo 8=0

1AS -=

~

[QI\Q-1Y = Q AS Q-J

If V lA-I ~ 1. :::) eU'c\tl elelVH?lIltr of AS conve,e;es tv 0 os S ~ 00

OM,! IAJ> 1 =) /\ \IIJI1\ eoYl1-ttifi 0. dictVOYlcJ. -e1e(VleVlT tV!Ci-t qrows ~ bOlAnd,

[, (o,v\~ J2,i~Vt \letl(,\)., ~t Cs- o~ds{eu ~ cmH- civcle-)

1Vu. ~tabiliht ~j nOV' foil' CI. vec,f()('-valw..ct <zquah'oYl y-eqwve.g

0,1\ et'seVl~va.l~ of A q~ou.lO< be iflsiciL ~ un'ltcircle-, Iy I~T~ 1--1 ~ ------'0

111;S eq,uah'oY\ Yep(e~eV1t&" a tiMe £'E'viM -:;;.) ~ Movin~ Ave~ Rep;-eseVltation

4 sinu. Y-t; is Movi,'"e! averu'j-t- <lfc:dL

PC\$t ...-ea1iz.£Hions of oljstuv~aYlc..£ tevM

Xt.

Page 76: NoteRBC (w/ MATLAB exercise)

g-o,

e'f.. Beho,vioY of tW.. Solow l<e£idutNl . ,.

[Y-t = b+ Ct Yt-1 + ct + dVt-]

= vt. + c3 vt - 1

t procluc;.-!ivih.t_ pmductivlh.( ctiShAt17aVlU- - ~'ltJD(.,V,

.. FroM uS. olaffi., K-u. (e~id.ua,(. I()f -tW... Y~r-i?5siOY1 of 'It on Yt - t-l;v1o{ t gtiH S/;'00'SI

<;ubstaVlhal OtuwCOr-veta.tiOV1 .

~

yVioc;U.,li'''-j Vt a~ &tv\' tlt.,d-oeoYfe,.(a:teol proce5~.

o ~'Solow Residual" rMI

~CVMVIO'j;CoJpa'~

(c.aV1 M€.(lSVJe. tW.. eOlV1b'lfle.o.. .effec.i1 of At; ~vtol V-t; by 9\AQrm(..-h\~

Q.f' the growth In "0P\..{1'S ft'OfVI tiIu.. qrowth of ()utput:) oC 1-ocY r= Vt> (K1) (At L t ) I' .t

IhIS eC(,iJCl.hoY1 vvlll V10t wor-k if labo"'- ~L.Appl~ flue-hAutes Over- tiMe,

Gina i Lt} \iVlll be cor-vela-teet vy oIisfuv bane.£. -\-e-nvl. g

L..eCt~t gq;uaf€-S e"'titvtute,~ of 00 ClMol [1-00) \iV11l be bias.

o P If vt is 'oi~ vall.t£ ::0) L'" i =) recJ wCl.J-€ r

Page 77: NoteRBC (w/ MATLAB exercise)

f\~~iAMpt1OV\S: Prod'" m ,'s Co blo- Do~let'S

- Co fV1 peti hve, fac+ov rvtCl y tats

~

Foe: . {1-oC)Yt- = Wf;

I.-t

/' ~.~ ~ $WOl/K .Vt/a4v,-, + ;<t + e,

t ~,","'" i«L k"'''' .;~ p",'''Uiv,''t • .

MeaSU(e.~ -+W. perbistevJ(/~: Of c,{evitHioY'S ·f.(-I?NltreVl (1.

[ -ct.] Iy+-] =1

o 1 s;r't

" " ~ outplAt yesr ctuoJ ;~ -hvrY\ ttu. Y(2.B ress iOVl 0 f Vi; on Yt-1 QMo( S 1't-1

CltMeye Vtod de Vlotes c(evietJioVl ~CiyY) tr-eVlol) A /I

'11-1e SR yesictuo..t IS trom Cl. yeg(e.ssioVl of' r;('t on SI"t-1

~

lVlQSe. (esictu.oJ. gkou.lct be. i oUVlt1c.cJ. uVldev- tVu rV100W wI!t,'Gh rs o(Vl'Ve.V1 by

0.. £ in91e. \::Y1ou<) et;.

Page 78: NoteRBC (w/ MATLAB exercise)

~2 3 2. 01

Pvescott (l'teb) - U51'n~ fv1o.tlAb

A vepreseV\totive o.~eV\t fItll1xi 1\I1·IZe.-S·;

-~t + Ct

L. -

1-eI ~ StKt nt

I CaIlil-lJ. ACCUrvllAloJiOYl:

e..W'Y€Vlt Procl '" TOW Yeso"n:.,{. t<vo.ilab-Q

- (1)

- Cz.)

- (Lf)

e.tiU1i !t>rJ'Ur'l1 IS iVLe(e·ft,fe, Q Vlonhnecw (e;<pectatiOr'UtL 'llysr-€NI of it d,i'ffevenu- ettl,lClIiWlS &. TW LAw of MohOYlfbr i:'-t> )V1 it

vootic<~~

Cz, "1<,;, Ct> V1~)

1 :::. (5)

-it (~) l-n

= C~)'::i 1-~ &k k Yl + [1-6) k - C Lg)

\IFa.... ~1"'1pHcihr ~ v

'" '" (tl ) ~e-t V\. = 17

C = Et CA

t +1 + ell. EO k-t+, + C<3 Et i H, A A A

tltu,Vl ('2) J. (i?) Ofe _. '" (10)k t +, 0-4- k t + o.s Zt + o.(,,-C-t> \'3 r10{~1;t

" (II)==It-t, pit, + cc,t+1

Page 79: NoteRBC (w/ MATLAB exercise)

j,,-~r ~ \;~) ~ Jt~-' 1i ~~- } I 'L_"; = O-!J Yt + (Al2: t -+ ~;t _

CAz ::=. ~e (1- e) k-e

-:::: -(:>(1-f)) k- e 3° k-e

Ott = C1-b)+(1-e) ,

k-eas -=

=- -~0." k

=

~0- Unear'izcdion : ! j

t - ~ (Ct~ c) == f.> 6[1-0+ (H) k-e@)]- f> aG-&+ (I-e) k--rtJ ~ &',,;C)

I .

.. 1

=- [(1 ... elk~& -+ C~-~)l K(kt-k\ -+ k1-8riJ/l~-"l.) - ~~.rtt-C) ~~ It. "). k \: f k\: C

-:: L(1-a)l.<~e-t- (1-0J E: t k~ -I­

Page 80: NoteRBC (w/ MATLAB exercise)

-------------

A

a:z.. 1 (42- 'Yt-tl

C

o 0 ~t+\1 KH1 +[~: [: :J ~..] [: :,] tv l

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0 wt"' lZt 0 'i!t'l-I 0

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'4V t -tW,(e, is jIl<? e;<peufah£vvl

~ bu r odd. e,Yt( +e(I'\A D'~n;<,,~

~

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-1B -:::. Ao AZ

= [' ooT~I> 0't~. Az. o 0 (oJ

...--.-.--~

JOV"MVl Oecof\1posHioVl

~ c\(!(OmpOS\V1g Y"ltltnx A

[A =: QAQ-1]

f\ "" 0. cJ. i050fl oJ. Mt\-\l1)( of eigeVl vt\Iu.e-.r

~

I

Page 81: NoteRBC (w/ MATLAB exercise)

\ A L~ K 2J =

iheV/} etefJ'ne 0­ flew vectvv- TYZAVlStooll1eet VO r-IQWg, ; /<.1 .'''\ :-1 -1/ -1 ::(Q Yt +1 I\~ !~ - A 13 Q Wt-tl

!1

'::'/ lnsicLL'tW- undo C·'I''(.,le.. :::::) this !'WI" ,'~ ·foyward.A1 .c. i ~~ble. root!

~o o o 1.02... 0

o o .8

A A A

o o 'Vi1 .t-+;, + ¥,t.. kt + V'3 2t;

,"" "" '" o ,V21 '..ct + Vu. k t + VZI l'l;

1\ " /Io o 0·8 V~\L+;, + ,vn k'l; + V:?3'2t

'3,,3 '31'1

- prvo'(.{ChVe,h\v..L 'j-v YlO.') - rv1CtY r..e r ach'viH-&J Cal i~tiO)1: -,- oUS-Count- (Me uf 4-h/v peVal'l{)tAM.

= O.01Z[ _ depredah'tN\ Q·F eapilnt I) uU,.d. -#tv 10 l(r.r

l1- CCtPj~ C-QVl be. us.ed Ion¥Y -=) ~ is YMal/er-:e :::: O,'f =c' 0, bLf - (abC!>"s !;inav€. i()f r'ylC~

6 -= o.76'S .- <;,E (}ft-e{)'!V/olo51 l:itxk 7

{frY'" rob"", veriotu,q;J!.s.

y/<- =

1° =

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:::. ~ b (1- e) k-8 c:1.:l.

:= -~(1-&) k-e Cl'3

::=:: ( 1 - ~ ) + (1 - 8) k.-~Ott

L,-ecAs- ==- r, ~ y-k

= !:... = c_k°b r­

Page 82: NoteRBC (w/ MATLAB exercise)

,

"

~6Lu+l0Y1 toM MatLo.b:

EI<~V1-Vtll~ : LO.'H?q

J\ ~ c)

o

rvtcdyj X of 81§£V\veGtof'S;

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II

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~Ul:Jstiluh~ -li1i~ Intv ~ law of MOh'OV\ :

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- -():~'3 (- O.11kt-- O.1gZt;) + 1.D1kt: -+ 0.010 Zt;

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.

I

Page 83: NoteRBC (w/ MATLAB exercise)

~

1-e Zt; kt + (1 -;- 6) k t

lOt) It'neClV"

AT steaoll{ St-at-e, :

..c + k

/C­

e k

=

=

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-(7k - bY-..

Y - 2> v....

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/I

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Zt;

V, / ~ "'­

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Yt"+1 II

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A

kHZ

FroM C'l):

Let S-t­

T~kl\~ i2xpectrdioY\~ of COYlct',tiOYlo1.

Yt -;::: (A)E:t;Yt+,

'it ::: (~ Et Yt+1

Q-1 Y.L 1 "t; = 1\ ~ Q­ Yt+1 ,

- Q-1 y-\;,7

- St - f\ S SiTI

()Yl t;~ t Info J

,., (13)

~

[~t15z !;

S3t

=

A1 Et s1 t-tl >

.Az £t.Sz;t-tl

.AJ Et S~,tTI

(Itt)

Page 84: NoteRBC (w/ MATLAB exercise)

La.w of Itarated.. expectations

gt == AE£Sty

(~~(-5tH ~

£t = AEt (A Et +, s,tt-z.) 2­

::: 1\ E:t St+2.

0 T

~t 1\ Et 5 tH

Foy all )..~ ~ 1. :

Let lilV) E S-t+T does not elCploh -Iva ~t i~oc

Fov Ai <. 1.

t;rl\ (.l. 'St -= Q-l Yt

- ~ee p.5tj

Vec-!oy AlAtor~(es~joV\ s.. fbliCtf J:Ul1ctitms

~(,dZ)b-liIvt+e. (IS) 'I/ltv (10)

Page 85: NoteRBC (w/ MATLAB exercise)

vecfov hctt"re9 "'eSSi0'Y1

(VAfl.) Fot'IV1.

1"V1.eVl, i1tu. evolution of w refVlCliVlinfl voviable--s DVe ol£teftVl'Vled t0rvu9 h. 'ftv...

tollOlN"~ "pollC!.f FLWlc:nOVls"

( c" G" ") Tt n:l

Page 86: NoteRBC (w/ MATLAB exercise)

C[a

2) Divisible Laboy

~ All tfldivilituo)s ove eMployed

C"" tJ-t; \') tOYlswV\t)

~ IV1dividutJ~ COntiYllAously C<oIjU5t hot

~ ~ 1<()tQ, e;tll 'InclividucJs o..ve -the. sa IV] e. eve fVJ ageVlt VlDY ks the SCt/Vle Vlumbe( of . LJ 0ou~.

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0·0 in ClV1 t<~c tv'lodeA} eve"1 a0enf c-wooses hot

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H Not~ FlucfvtatiOn<5 In ll0qveljate hOlA(J \!Iovked in ttu. eCOYlDMY are d,()e,. tv

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:tt of peop-U.. eVlteri~ $. Il?utVl(~ +0 wOt!'<' wrc..e Cex t-e tI15 Iv e, (VIC! v"f); 1\ )

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Page 87: NoteRBC (w/ MATLAB exercise)

Let H t -toM VlOl1 rr workevt Ci e,. ®~ '" V< hti)::0­

h,,::. Clve~ hours li'JOvv...eet

Nt': :;t Of incLividua.Qg at vvOy~

<>dlc4tC;h'vi f1( ~ ..Y. \V'V Nt

B) HGlflseV\ (l.:tg,.): JY\divlsible L-abOl'" etVl()l tW- ~v.s;()ess Ctrv1e

AJ Ind.ivisib/e, LaboY' Vs Vivis-ible- ~bt1Y'

1} TV]cfi\/i~ible L.abov

..., l'iH-/o du.e -Iv t> Nt. rotWi tCttCtv\' Ah

~c kW.. MoM IS r'\O()- ~onvex:'11vt ? (;e..) i'vIodJ,). ~ Kyclltl,Vlcl &< Prescott CICl~z.)

~ OH WV\e t!Aat

1) 11\oi \;icWcJ s ('em eitVJef - IN()ik. (). set :If of hours (i,e E 'n~o<fV I'lot ev(!,,"'! HH\ '~_) is e{)1p'/)lfP~

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en ~\.{ are. UVlCllole. tv tNol"k On inrev(V1eot",tlf e n{.AyVJl:7el" of! VtovuJ

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bvtt +W. 0utco f\II e 0 f ttu. lotte'1 Ctvill be oJffe re VI. t. ,

1-1' I P r----~1'flO II~WI~

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Page 88: NoteRBC (w/ MATLAB exercise)

T"teLilS"ive. MoV'8it'\ ~J. DiVl,?!ble LctQO(.· ""V\. .

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~ -te-,;S <;,uppovtq, Moclell'j of RI3C vy fnoi vi sible la0ov:

Page 89: NoteRBC (w/ MATLAB exercise)

'" ='; (VlU.ti CoppoY!lAI'lH., eo~t rot WOYIu'''B /oYl& cHswrlU ~ {/?>s li1itl'f to vIOYV- OYJII.( tl l-1 cdf do. '1

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Page 90: NoteRBC (w/ MATLAB exercise)

AS~~CV1P nOYl s ~

1') HOl<SeVIOlcLs ?lye iolevltical

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tJ.,jer€,. £'"t Or€.- iio{ C"f' PI5..L~. F =') 'V--- iid('l-Y, 6;)

Page 91: NoteRBC (w/ MATLAB exercise)

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erg�

LX) HH rv1Ct)(iMiz,u -tW eiCpec.ted-.Jltl1lAe of otscouVlteGt (,1e-h'vv..L uti1lht:r ;;~ t ~tu(Ct, 1<) ! D.c.(6L:t

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Page 92: NoteRBC (w/ MATLAB exercise)

Thg SDGloJ.. planne r'S probleM ,'s

Mo.-x U :: E z: ~i;, lACe, 1- ht;} t,..o

L;, t. ? ke h1 - ef (z\, k t , ltlt) = t 't t

oCt + lit t[ fU\,k t , h.t )

kt+\ = (1-6) kt + ~t

"l t+l == -0 'l.t + ~t"-t-I

ko,"Zo ayt 0IVt-Vl

o ~ 6 f 1

Cv l~ot (0, 61.)r-/

7

1Vlt~ probleNl eoV\ be S'olveet 'oy us"n9 DvnClM;C fUlUqrn/VIy\lf, '1j t-ecvwdqpes

~

13>ellMClVl(S equtlh'orr~

= ere)

~{; Gt +It ~ Zt kf h~-9 + (1-~)kt

2.1.+1 = )' Zt + 'V-I;f-l�

Page 93: NoteRBC (w/ MATLAB exercise)

2) Atl eCofloMy wft1..1 IVldivigilole. /.A.~oY"

AS(;UMptiOYl S :

't,) Actdi~ ~ CH~vli"lptioY) ofinc!lvi~i ble.' \aboV' tv iW- above ~tvcV1astic

qrvlNttA (V1ootet ~

/J. Not (eflnts 'odJ'u&t(\'1ev1t tt10Y19 tGe exteVlsille, fV1c<rB in.

ll,) Utilitv ru(lctiov\

LJJ .r<ep((?seVlmtive GtgeVlt LM1\ ICVlply ,'iVl+evtel\1poV''''' elQ$ticitV ()t gC.t kI'fitu tiOVJ

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H'H '5 p'DoleM can ,veach (\. Compen hie equ'd ikmlJrvl.

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Page 94: NoteRBC (w/ MATLAB exercise)

--------

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To tonve"i fy tVJe, COY1SUMphOfl prob. .let:

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v) All HHs D.ve -lOlev'/ticM leX" ?\t'1te,,) tw-Rl(t;tca..~e,.·

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~

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Page 95: NoteRBC (w/ MATLAB exercise)

qq

V'l} HH'S Utillit.f:

j'-u-(-c-t,':""'oe-i;-)-=-l-Oe-c.-t-+-A-oC'--c-,0-9-(1---ho-'i CC( )

11'� V\\,j E"xp~c.ted.. Utility OVI peviocl t; 0

cX?t, [I09C~ -t- A109 C1-~Q)J + :1-oe t ) [lD~C-t + t)Joqc1)1 ~~ + oCiA tD9C1-~) v

ioqC't ~ ~tv~~i,) Tecvlnolo9Y COYlstmint:�

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Co.'ooY CeI.'"t .

x"~) Law of MOrlOYl tOy ~pil-t<t ~tvcv...

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1t1e- 12eprMevttahve. ~Vlt IS ProbleM;

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C-t+ ~-t- ~ f'Cz",kt,ht-J ~+att v, ~ Kt; g Zt;

kt +! C1-b) kt + i~ oecls iOYl v..' cCj; J " Itt ­....f; J

Page 96: NoteRBC (w/ MATLAB exercise)

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Vt- i ~ oOi ~

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LA(Ct,oC-t;) = logc-t; + AoCt I09(1-Mc )

-;;; log Ct + A C-h~-t) lo~ (1-.no)

Let B::: ~ A 1°9 (1- t-to) ho

(Ilf )

o. \V1IS uti li1L.t fv,. ($ lineal in leisLAve.

~

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4 & '\(\ot~IJeVlc{e,Vltt of +w'willi"1ness of <lflcf/vloWa.1~ -tv

~ubs-nh.tte- leisUie.- across -H(\'I.(,

7

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Page 97: NoteRBC (w/ MATLAB exercise)

(02�

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~ ~

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h-t =- II\. vt

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h "" C1-e)(p-t~) ]t(f'-tb -eb)

Page 98: NoteRBC (w/ MATLAB exercise)

--y -l\,

parameter� definition value

e� Capital's share in 0.36 production

c5� Rate of depreciation 0.025 (annual of capital rate = 0.10) --101.

Discount factor 0.99 (steady­fJ state annual real interest rate = 4)

:> 9-\eo.ot.( Stlittt h-+ 1;A (if) 'I-tu vl1liht m)� From =" 2 (households' ~

i 1'\ ctivic;i "Ie Io.bo.,..u(c, ,I,) =logc, + A logl, take leisure 2/3, oQ.sework 1/3 of ti me)

y\ 'vl()~ F o;,st. Rate of tech 0.95 j" '. .......� 2

'i~ '" III;!. (1-Y, 61,.)� persistence !

,ho� Hours worked 0.53 f.< /� I ,

~ I"

Results •� Hansen reports seasonally adjusted, logged, and detrended�

data in the table. The first two columns are U.s. data, and the� other four are results from his models.�

Quarterly u.s time series Economy wi divisible Economy wi indivisble 55.3-84.1 labor labor

Series S.D.sin %� Correlations S.D.sin % Correlations S.D.sin %; Correlations i� with output with output with output;�

,Output ------"� 1.00 ~.16) 1.00 Cf5) 1.00~ (GNP) Y (.00) ..l\ (.21) (.00)�

Consumption It 1.29 .85 .42 .89 'f' .51 .87�

Co (.06) (.03) (.08) (:04)�

Invesbnent 8.60 .92 4.24 .99 5.71 .99�

~ (.51) (.00) (.70) (.00)�

.05�

(non-res.) Ie. \ (.07) (.07) \ (.10) (.07)�

Capital Stock 0.63 0.04 .36 .06 .47

.' .98 .98Hours� .76h. C~~ ~ .16)(Non-ag.)� ,\.(.DS)"· (.01) ~ (.01)

.87�

(Output/Hrs) (.08) ·(.01) (.07) (.03)�

Productivity 1.18 .42 .68 .98 .50

I.'r -tW. do:\~ WUe,� 10 eel =; S.O :: MQOYl of, olevi~.:I1O'f\g frO(lll h€Vlol.

Page 99: NoteRBC (w/ MATLAB exercise)

104­

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k ctiviq,ib\e. Jabov elUr\OMy.,�

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(V1octe.A.ft,v a 0iveVl <3tocltlostlc process -for' -tkL tect..lVIolo~y "hoe-k,

[SD)� h'v) The 'Ind.ivi~·lb\e ModeA ge()emte~ St~h1ctafo. oevlo"tlovH tltJat ave�

c.losey- tv tL1e. obseyved Vo.lue.6.

l.v) The fllA(/tlAl\:tiOV"\~ in Most vo.v1o.lole£ oye lorBey'" foY'" ifle ac.tlAM ecofJol'1Y

t("OVl w( -me.. ·Inctiv)~ib\e. lo.~o( eC0r10My.

(th'IS is likely oue to (V1easvyeMeV\1" eyyoy)

\/) lnoivi4ible labov' 0enea;\fe-s 0. h'gn\y procyclico..A. Cl\JGt~ rote Cprvcluctiviht;

[)A'de u.~. o.o:ro. <lVtowg 1110.t w~S aye. anl~ MDcU~tellf Pl'Vtyc,{j~

VL) 1ltu. Most Biql'lifico.rl.t d.isc.CJve~ :

fu QMt of'6, h r-elo.t1ve-ro ,1(~) IS vef\j C<iffev(;7nt ~"" oivisible- [abCi ....

.& Illoivit;i/XL lobo'" Mtldl;/;

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o/c,.. "Inc;l.ivisible. Io.bof 'IMplies tltlo.t all fluCtlACtnOV1$ oewv'" ot- tht l'xteVlsive.. f'VlctYB'Vl.,

Page 100: NoteRBC (w/ MATLAB exercise)

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t\tle Dggfego.te econoMi I~ inf1Vlite, &. "!V1o.epeV\(}eV\t of titL eLa5htiht

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Page 101: NoteRBC (w/ MATLAB exercise)

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w~ {).McJ., vtt; ore srnble

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Page 103: NoteRBC (w/ MATLAB exercise)

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V, J Ii

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Page 105: NoteRBC (w/ MATLAB exercise)

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kqb :: 11

1OV­

(1-()) ~g

(pI L 1.

~ov(t>J. PItMmi~ ProbleM

h'C$t {'u~tHv.te. (2.) a...cl (5") 1nto (-q.)l

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~

~. t. a low Of MOti oYI fo{" Cd..

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__-------3�

Page 106: NoteRBC (w/ MATLAB exercise)

l,J,Ievt- Y-(Y1t)~)kt+l, g~) A-t") ::= k IV\1;e k~ el<p(-6At) + ellpC-At)(1-b)kt

- kt 1-' + (oC-1) gt1 + '(VCN-Vl..,)

co t @ == Eo L ~ ~ "It;�

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If v

o 0 1/. ,j/ ......

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I J

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V C•) fS CJ1'vtVl by (~ ) \1

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Page 107: NoteRBC (w/ MATLAB exercise)

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ConcluSion S ; v . ~l

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affeMuL Io..t OYl MPt.- )

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Page 108: NoteRBC (w/ MATLAB exercise)

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Page 109: NoteRBC (w/ MATLAB exercise)

11 b .5 '3 oq

. ~. ~di A Pr-o+oi'{p" Mod-tl\

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Wit.ere nt ;;; Lobo)'"

Inst(AlIltt\rttOI,(S Utiliil.t Functi (}V\

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(2-)

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/" : :=. f. G Zt 9-' 1-& (b) "kH1 0 ~ 6 t },.t+1 e- e kt+1 Vl t + , + (1-6)J f

Vaio
Text Box
Ch.8 : MATLAB on RBC
Page 110: NoteRBC (w/ MATLAB exercise)

111

Ct� ::: C t + 1

::: C

:::- -:;;k t� kt-t, k

Vl t� ; .. ..~. .Vlt+1 = V\ .... ....

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"

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Page 111: NoteRBC (w/ MATLAB exercise)

nt'M: , .

.-.

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Page 112: NoteRBC (w/ MATLAB exercise)

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00 .- A"FroM C/.i-J C

etJ--- = A ~t-A) ~ ~) T~

I'

Ct; == .)t At;-\ "

A

(15)j- 2~ - At ]

- D- (1-e) k&v'1.A e [AC1-e) k!1y1eJ kt1"t

-e[\C1-e)k& vie] ~t -t- [;\C1-e1k&v)"fJ] Z-t

o :;, = ~ - ~r (At'" ek.... it ~

Let l4>1 = ~+ 1~n)-1 j ~_.__..._-_.---------- -­

I ~~ ... z.)l= ep, (;\. ... ekt (1.) ..�

Page 113: NoteRBC (w/ MATLAB exercise)

1'20�

frOM U?); A == ~ A (e~~ke-lvrE/ -t 1 - ~) 6 1 1 e

Ai;,\/\ ~ ~ (e k - n - + 1-d) ~~~:c0 -+ ~;( [e (e-1") ke

-2 A-e

] k' ~t+,-k\ )c k /

+� ~lc[e(,-e) kEHr\"eJ ~(V1~+I-V\) A Y\.

1

+ ~"k [e ke-l~-eJ~0t+;C)

= ~ [e ~~r + 1-.s1;\t+l� + ~ [e (e-1) ~rl Jkt + ,

+ ~[e(1-.1~r] "<+1 + ~ [e(\:.fJ 4T1

e-1 'I ~ FrOM (13)~) e

1./V

/\ "� A A

~ At +1 + (3(e-1Jf kt +1 + ~(1-e)'('nt+l + fJ'('2 t + ,

Page 114: NoteRBC (w/ MATLAB exercise)

- --- - --

A A A /I� A

/\" = At;t-I -+ (b� (e -1) r kt-tl -t ~ (1-fj) r <1'1 At+, + (2) (1-e) rep, e ~t-tl A A

+ ~ (1-e) '{' 4>1 'It-tl� + (br It+1 cP. _.. _~ 0

- (1 + ~(1-e) r4>11� ,At:-I-l + ~r[(e-1) + (1 -e~47)l kt +1

+� ~f [1 + (1-€)) <pJ ~+I-

~r(1-e) (cPo-1) kt~, + ~r[1+ (1-e)4'1l Zt-tl ./

v -

ll.b

A

~ lAQ~t1-tute, (I b")� In~ (l<1) to eli,vti ('-(Ate" V\t"

kt,t-t,� ~ k + (r+1-cS1ifr,t -+ C1-G~ (j/, (Atte~,t-tiJ 4- '/?f; - CCt

=- k + [(\r-t1-S) k + (1-17) 'Y~~J kt + LY + (1-e)YcP1Jit 1\ , ['\\

-;- (1-e") yA. At :,_'1� Crt ')Y'1 \ ~ )

\\ A

~ -+Af;

k L,,, = k 4- [c 4- 0-~) y<1>,l).t 4- f,:'~m. + (1 - e)~ ~t + Y, [ 1 + (1-,17,,) 1\).1 Zt /k~ v(';) ._­

.� . v / S:kllL y" ~) k.

- - -_. ­

(V"+1-b)k+(1-e)yeep, == 'y@)Y+ ~)Y-~)YcS -t YcPo-yelPo

"� ~ ev+ ~(~)I<-- (~{~)k6 + '1~,,-)'e<Po '

:::. '/(e -t (\)0 - e4lo) + (1-s)k

== 'I [e -\- (1 - e)¢"J + (1-S) k.

Page 115: NoteRBC (w/ MATLAB exercise)

122.

a a1 ..2.. ./ ""

...--I\-----..,.....(::::-=:;:;;>''\,~ r' ~ 1\

fuVl) k kt +, == k + [c+(1-e)VcF1] ~t + Ly[e+(1-e)<po1 +C1-cOkJ kt; C2-0 )

+ Y[1 + (1-e) Q>11 "l.t

a ~

Ihe(em'(e" &t1 :::: v[e+ (1-e)cj)ol + (1-$) k -'" . .. ~ ..

02. =- C + (1-e)'1<P1

Cl:; -= Y [1 + C1- e) ep11

Olf- = ~ I" ( 1- e) ( 4'0 - 1)

0. 5 == 1 + ~r(1-e)cP1

::::CAl. ~ Y' [1 + (1 - e) '1'11

g1z1~m. Matrix forM A 1\

k 'kt 0. 1 /Io 01 ~, ~1 kt~"

/I

0.4- C<~ lAb At 0 1 0 AtTI -r U}~I 0 0 P 0 o ·1'lot; It-l"l

t J\

AD y~ A1 Y-e-t-I-1\

+ [~]~, ~

1\ 1 1\'If; - A~ -1 [01A1 VH1 + Ao ~ q,.'t+1

L.et A :::: A-1

o A1

~~ A~'[n -'\ " 'lot, ==­ AYt-t-I + l3 'Vtrl

1 (21 )r:--= A-

1 Y, ->- A- B ..., 1

Page 116: NoteRBC (w/ MATLAB exercise)

12,�

/IA

kt-tl� k-t; A� A -1A-1At-t'� At + A (3 !"{--t"1

:It;Ct+ 1

-1� ' -1 -1 Q Yt +1 /\ Q� Yt + A B'ttHI

A� 1\

Kttl� . ktq" C{12. 'l'3� ct,. CiZl f{13 A I� 1\ -1�

({2.1 Ci-z/.. lz3' ).t-tl /\ qZ\ QZ2. 1..n A~ -t- A 13 'Vt-tl�

lHIq~1 Qj2. q33� Q'31 q,1 Q13 Ct

,.

~') ~u tiIli)'j-z) f1'llc( tW..� re,w,hcmsh,p .At; s.. 2-S'i-ti ta5. 7 1

/r

~ 0 0

rf /\ ::::;. () 0:\2­0 a /\3

t;\ilt..e- A1 > 1 J ~\tw.Jc,t :::. 0�

~------

( 11 , kt;+, -+ q .AU1 -+ Q 'It"-tl\ '\'11 1L l.z.3 )

VVe. ~()'Yl LL~ -tv e,lif\ltlrl.9--te- A "-

fYOM OLtV d.~nOMico-i. ~VS~e,IV1" A� 1\

'oIf wvd11 A (AS l?l \ineav t?oMbiflCtnOrl ot k Ovv"cl 'l..�

t I\.,� ~O~V1MlAS . e.lCoseVl€Ou.S Gtztte. VOr1~u.e. ~+o-te. v(il""a~

Page 117: NoteRBC (w/ MATLAB exercise)

12Lf

Le-t .A-1

..

A ...

cr1 (Ai; + e kt + 'It)

= ~, f[~~::) k, - ~ ltJ ~ ek: +Zt J.

- 4>, [~- tJ kt + 0-t-)Z~J

=[~:l

Page 118: NoteRBC (w/ MATLAB exercise)

126�

® ftAAt Lab� P()'fl'4Met'er VaLLte.s -0) Cotil?rafioYl

{\A~+lab

~ =­ O.q~ bew. == o.q~;

~, \l'1 ~

e DC

2:J

V\

P

cP1

:::

--:::

--

-

O.l.\­

0.33

0.02-5

0.2g

O.g

1

e-~)1-1"

them :: 0.£+', o.\pho. = 0.33;

delta = D.02.6 • ~

V\ := D 1.8' •• :J

rho :::: o.~ . :J

?V1i 1 == 1/ (them - (vd (1-Vl))) ;

p. 12.\ cPo = e <1'1 ph,o ::. them * ph"li j

~teM.~ ~~te, VQ,llA.e&

'( =­ J. ­(b

(1-5) r =­ o/bew ) ­ (1 - oLe \m) ;

?II2' y k

::: "Y e

yk - Y' /tlriem .:J

k yl

:::. ~t kV1 ~ 'It< A (1/ (t0e~ -1)) ;

k

y

- ~)n-

- ~) v, -

'k

y

-:::

"=

kvHH'~ ;

..

yv- '" v...

a " . . . ~. , ..

::::'\),11'1- ~ c.. '1- ~k C- = Y- CdeltC(-1k) ;

Page 119: NoteRBC (w/ MATLAB exercise)

126.�

~on5tylAc.+ Mamces Cp, 12.2.)�

0 - / ( -rhet-a + (1 - th etTA) '" pni 0) -+ (1 - ute IteL) :;!. k ;� 1

~ Oz.::=. C + (1 - -theto.) )/< y ll:- pni 1- ;�

tt~ _ Y ,.. (1 + (1-t'\t]etcA.) ~ pna);�

ClIf::: beto.. '* Y'lI: (1-them) * (PV1IO -1) ;�

9 o.!:j - 1. + be-to. * y" ~ (1- -them.) )I,- phi 1 ;�

9 {).b ~ beto.. >I- Y'lf ( 1+ ( 1 -the-r-o..) * pV1i 1) ;�

[k 0 0; Oct+ 05 0.,,; 0 0 p]; o[ Oo.Cl 010·001J· , Z� 3, } )

C(,tlw.ltlti~ Mo.b1 X l p. Izz)

A� == °IVW CAo) >F A, . )

£,� = 0\ 'fly (A ) >/< [0' 0 . 1J . o ,) )

Ei~t'1 v{,\l\At. ~ /\~ 0

O·o't '$ 0 0°l[V-,D] = el~(A); - 1.05" II� [ o� 0 0,('

/,Q. eio/Vl vec+ov

Q = iVlv(v)'/

JOYdan VecolVlposifiOYl ~ fm(VJ (23)

DO = [AC1,1)- A[1,2)~(Q(1,1)/CX(1}2.)) A(1,3) -A(1,2.) 1< (QC1,,3)!CX(1,2.));;;

o d10 J;iespot1~

ltvLplAtsel' FUncnoY\ ~) one -\1\V\£- i teG~notD~Y S'l--J oel-<.; £'~-tl

M =:� ~e(oSC2,2.00)j (

f� DO =. 10.'1 5 D.23 ]fay ~ :::: 1: '200 L0 M (: , 1) = DD" ~ * [0; iJ ;�

O,g­

Page 120: NoteRBC (w/ MATLAB exercise)

i

y:=t/1;I�

plotCY);�

C-hCttCi,) = [IX (1,1)/ Q (1,2.) Q(1 7 'S)/ Q(1,2.)] lie M (:) ~) ;�

YLV1atni:= [p\.1i1l/.Ctl1em-C61C1,1)/Q.(1,2))) p\1d*(1-(G1(1~.3)/Q(1]2.)))J~""(:)L)-

eli\O- . J

. ,.'

., ,.. ..- ,

~ . ' , ~ ~ ~. ....