CASSKOOPMANS—Solution of small dynamic linear model
Posted: Sun Oct 08, 2023 10:42 am
CASSKOOPMANS.RPF is an example of a simple dynamic linear model (Cass-Koopmans with production linear in capital) solved using DSGE. This has no expectational terms or shocks, so the only reason for using DSGE is to handle the unstable root (without solving it "backwards", capital explodes and virtually all the output goes into maintaining an ever increasing capital stock).
Detailed Description
Detailed Description