Solving the real business cycles model o
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Wen-Ya Chang; Hsiu-Yun Lee; Yu-Lin Wang
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Article
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2003
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Elsevier Science
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English
β 266 KB
One hallmark of small-open economy models with a time-separable preference assumption is the non-uniqueness of their steady states. Following King et al. (J. Monetary Econ. 21 (1988) 195-232), most studies compute a log-linear approximation solution to their small-open economies around the sample me