IDEAS home Printed from https://ideas.repec.org/a/eee/jbfina/v33y2009i3p568-572.html
   My bibliography  Save this article

Non-concavity problems in the dynamic macroeconomic models: A note

Author

Listed:
  • Hiraguchi, Ryoji

Abstract

This note provides a method to convert the dynamic models in Cysne [Cysne, Rubens P., 2006. A note on the non-convexity problem in some shopping-time and human-capital models. Journal of Banking and Finance 30 (10), 2737-2745] and in Cysne [Cysne, Rubens P., 2008. A note on "inflation and welfare". Journal of Banking and Finance 32 (9), 1984-1987] to concave optimization problems. We do this by introducing new control and state variables in the models. Cysne (2006, 2008) restrict attention to continuous time models and derive parametric conditions to use Arrow's sufficiency theorem. When the sufficient conditions presented in Cysne (2006) are satisfied (but not under the sharper sufficient conditions presented in Cysne (2008)) we can rewrite these models as concave optimization problems even if time is discrete.

Suggested Citation

  • Hiraguchi, Ryoji, 2009. "Non-concavity problems in the dynamic macroeconomic models: A note," Journal of Banking & Finance, Elsevier, vol. 33(3), pages 568-572, March.
    • Handle: RePEc:eee:jbfina:v:33:y:2009:i:3:p:568-572
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378-4266(08)00206-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Benhabib Jess & Perli Roberto, 1994. "Uniqueness and Indeterminacy: On the Dynamics of Endogenous Growth," Journal of Economic Theory, Elsevier, vol. 63(1), pages 113-142, June.
    2. Robert E. Lucas, 2001. "Inflation and Welfare," International Economic Association Series, in: Axel Leijonhufvud (ed.), Monetary Theory as a Basis for Monetary Policy, chapter 4, pages 96-142, Palgrave Macmillan.
    3. Harutaka Takahashi, 2008. "Optimal balanced growth in a general multi-sector endogenous growth model with constant returns," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 37(1), pages 31-49, October.
    4. Stein, Jerome L., 2007. "United States current account deficits: A stochastic optimal control analysis," Journal of Banking & Finance, Elsevier, vol. 31(5), pages 1321-1350, May.
    5. Cysne, Rubens Penha, 2006. "A note on the non-convexity problem in some shopping-time and human-capital models," Journal of Banking & Finance, Elsevier, vol. 30(10), pages 2737-2745, October.
    6. Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April.
    7. Huang, Huaxiong & Milevsky, Moshe A., 2008. "Portfolio choice and mortality-contingent claims: The general HARA case," Journal of Banking & Finance, Elsevier, vol. 32(11), pages 2444-2452, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hiraguchi, Ryoji, 2009. "A note on the closed-form solution to the Lucas-Uzawa model with externality," Journal of Economic Dynamics and Control, Elsevier, vol. 33(10), pages 1757-1760, October.
    2. La Torre, Davide & Marsiglio, Simone, 2010. "Endogenous technological progress in a multi-sector growth model," Economic Modelling, Elsevier, vol. 27(5), pages 1017-1028, September.
    3. Cysne, Rubens Penha & Turchick, David, 2009. "On the integrability of money-demand functions by the Sidrauski and the shopping-time models," Journal of Banking & Finance, Elsevier, vol. 33(9), pages 1555-1562, September.
    4. Hiraguchi, Ryoji, 2009. "A solution to the Lucas-Uzawa model with increasing returns to scale: Note," Economic Modelling, Elsevier, vol. 26(5), pages 831-834, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Been-Lon & Mo, Jie-Ping & Wang, Ping, 2002. "Market frictions, technology adoption and economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 26(11), pages 1927-1954, September.
    2. Cysne, Rubens Penha, 2006. "A note on the non-convexity problem in some shopping-time and human-capital models," Journal of Banking & Finance, Elsevier, vol. 30(10), pages 2737-2745, October.
    3. Cysne, Rubens Penha, 2008. "A note on "Inflation and Welfare"," Journal of Banking & Finance, Elsevier, vol. 32(9), pages 1984-1987, September.
    4. Hiraguchi, Ryoji, 2009. "A note on the closed-form solution to the Lucas-Uzawa model with externality," Journal of Economic Dynamics and Control, Elsevier, vol. 33(10), pages 1757-1760, October.
    5. Hiraguchi, Ryoji, 2009. "A solution to the Lucas-Uzawa model with increasing returns to scale: Note," Economic Modelling, Elsevier, vol. 26(5), pages 831-834, September.
    6. José Ramón Ruiz-Tamarit, "undated". "Multiplicity, Overtaking and Convergence in the Lucas Two-Sector Growth Model," Working Papers 2002-17, FEDEA.
    7. Cysne, Rubens Penha & Turchick, David, 2009. "On the integrability of money-demand functions by the Sidrauski and the shopping-time models," Journal of Banking & Finance, Elsevier, vol. 33(9), pages 1555-1562, September.
    8. repec:ilo:ilowps:366690 is not listed on IDEAS
    9. Alexandre Janiak & Paulo Santos Monteiro, 2011. "Inflation and Welfare in Long‐Run Equilibrium with Firm Dynamics," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(5), pages 795-834, August.
    10. Paustian, Matthias & Stoltenberg, Christian, 2008. "Optimal interest rate stabilization in a basic sticky-price model," Journal of Economic Dynamics and Control, Elsevier, vol. 32(10), pages 3166-3191, October.
    11. Ricardo Reis, 2016. "Can the Central Bank Alleviate Fiscal Burdens?," Discussion Papers 1701, Centre for Macroeconomics (CFM).
    12. Fernando Alvarez & Francesco Lippi & Roberto Robatto, 2019. "Cost of Inflation in Inventory Theoretical Models," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 32, pages 206-226, April.
    13. Martin, Fernando M., 2015. "Debt, inflation and central bank independence," European Economic Review, Elsevier, vol. 79(C), pages 129-150.
    14. Andres Rodriguez-Clare, 1996. "The role of trade in technology diffusion," Discussion Paper / Institute for Empirical Macroeconomics 114, Federal Reserve Bank of Minneapolis.
    15. Rybak Anna, 2018. "Consumer Trust in E-Commerce: The Case of Poland," Folia Oeconomica Stetinensia, Sciendo, vol. 18(2), pages 59-71, December.
    16. Marie-Ange Véganzonès-Varoudakis & Arup Mitra & Chandan Sharma, 2012. "Are Reforms Productive? Explaining Productivity and Efficiency in the Indian Manufacturing," Post-Print hal-03058727, HAL.
    17. Chen, Cheng & Senga, Tatsuro & Sun, Chang & Zhang, Hongyong, 2023. "Uncertainty, imperfect information, and expectation formation over the firm’s life cycle," Journal of Monetary Economics, Elsevier, vol. 140(C), pages 60-77.
    18. Daron Acemoglu & Fabrizio Zilibotti, 2001. "Productivity Differences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 563-606.
    19. Andrea Asoni, 2008. "Protection Of Property Rights And Growth As Political Equilibria," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 953-987, December.
    20. Angelo Antoci & Marcello Galeotti & Paolo Russu, 2014. "Global analysis and indeterminacy in a two-sector growth model with human capital," International Journal of Economic Theory, The International Society for Economic Theory, vol. 10(4), pages 313-338, December.
    21. Venditti, Alain, 1998. "Indeterminacy and endogenous fluctuations in two-sector growth models with externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 33(3-4), pages 521-542, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbfina:v:33:y:2009:i:3:p:568-572. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.