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2020 | OriginalPaper | Chapter

3. Traditional Dynamic Macroeconomic Models

Author : Daniel Lukui Jia

Published in: Dynamic Macroeconomic Models in Emerging Market Economies

Publisher: Springer Singapore

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Abstract

In this chapter, we derive the traditional dynamic model (RBC/DSGE model) from its origin—the Solow model. This chapter consists of two frameworks: the Solow model and the stochastic (RBC) models. Moreover, early attempts to introduce money into the RBC/DSGE models are demonstrated in the third section of this chapter.

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previous chapter Time to Improve the Existing Models

next chapter Modern Mainstream Macroeconomic Models

The full definition and deduction of the Bellman function is provided in the work of Bellman [7].

The details of Envelop Theorem are provided in the work conducted by Benveniste and Scheinkman [8].

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Title: Traditional Dynamic Macroeconomic Models
Author: Daniel Lukui Jia
Publisher: Springer Singapore
Book: Dynamic Macroeconomic Models in Emerging Market Economies
Print ISBN: 978-981-15-4587-0

Electronic ISBN: 978-981-15-4588-7

Copyright Year: 2020
DOI: https://doi.org/10.1007/978-981-15-4588-7_3