Understanding equilibrium models with a small and a large number of agents
Read Online
Share

Understanding equilibrium models with a small and a large number of agents by Wouter J. Den Haan

  • 685 Want to read
  • ·
  • 29 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

Subjects:

  • Equilibrium (Economics) -- Mathematical models.,
  • Interest rates -- United States.

Book details:

Edition Notes

StatementWouter J. den Haan.
SeriesNBER working paper series -- working paper 5792, Working paper series (National Bureau of Economic Research) -- working paper no. 5792.
ContributionsNational Bureau of Economic Research.
The Physical Object
Pagination43 p. :
Number of Pages43
ID Numbers
Open LibraryOL22411655M

Download Understanding equilibrium models with a small and a large number of agents

PDF EPUB FB2 MOBI RTF

Get this from a library! Understanding equilibrium models with a small and a large number of agents. [Wouter J Den Haan; National Bureau of Economic Research.] -- Abstract: In this paper, I compare a two-agent asset pricing model with the corresponding model with a continuum of agents. In a two-agent economy, interest rates respond to because each agent. Wouter J. Den Haan, "Understanding Equilibrium Models with a Small and a Large Number of Agents," NBER Working Papers , National Bureau of Economic Research, Inc. Handle: RePEc:nbr:nberwo Note: EFG. The general equilibrium model describes a very specific world, in which individual agents’ actions produce a result that leaves no room for Pareto-improvements. The model itself seems to suggest a clear cut approach for policies—Let private agents pursue their own business in an undisturbed manner and an optimal result will be the outcome. The concept of equilibrium is fundamental to economic theory, according to which, it exists when supply and demand are balanced. Equilibrium Models in Economics critically examines the major problematic assumptions employed to build equilibrium models.

In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general l equilibrium theory contrasts to the theory of partial equilibrium, which only analyzes single markets. The concept of equilibrium is fundamental to economic theory, according to which, it exists when supply and demand are balanced. Equilibrium Models in Economics critically examines the major problematic assumptions employed to build equilibrium models. It gives particular attention to the assumptions used to characterize learning, knowledge and expectations.3/5(1). H.M. Ennis: Models of Discount Window Lending 5 impatient agents are able to consume more than in autarky but less than patient agents. Diamond and Dybvig show that in the absence of aggregate uncer-tainty about liquidity needs, there is an optimal arrangement where agents pool deposits in a bank-like institution and receive payments. “The book is devoted to the presentation of such methods applied to solving a variety of discrete stochastic and deterministic DGE models in infinite time horizon. The way the book is written enables to use it as a lecture book for courses on computational methods in macroeconomics or modern dynamic equilibrium modeling for graduate by:

  General equilibrium theory, or Walrasian general equilibrium, attempts to explain the functioning of economic markets as a whole, rather than as . 24 Policy Analysis Using DSGE Models: An Introduction outcomes makes the models dynamic and assigns a central role to agents’ expectations in the determination of current macroeconomic outcomes. In addition, the models’ general equilibrium nature captures the interaction between policy actions and agents’ behavior. Furthermore, a more. 2) Extinction is higher on small islands than on larger islands, hence the equilibrium number of species present will be greater on large islands. Therefore, The number of species on near, large islands > The number of species on distant, small islands. Work by Simberloff and Wilson on mangrove islands in Florida has validated the ETIB. Downloadable! This book offers an introductory step-by-step course in Dynamic Stochastic General Equilibrium (DSGE) modelling. Modern macroeconomic analysis is increasingly concerned with the construction, calibration and/or estimation and simulation of DSGE models. The book is intended for graduate students as an introductory course to DSGE modelling and for those economists who would Cited by: 1.