Introduction: Orientation and Focus
- 787 Downloads
Our general objective is to advance methodology for the analyses of economies using multi-sector dynamic general equilibrium models. We begin by building upon the static Heckscher-Ohlin-Samuelson framework expressed using duality theory as shown most clearly by Woodland (1982). This framework is then cast into a two-sector growth model in which infinitely lived households choose consumption and saving to maximize their dynastic utility. This specification of consumer behavior is a key element of the Ramsey growth model (as constructed by Ramsey (1928) and refined by Cass (1965) and Koopmans (1965)), and has now become the mainstay of growth models with endogenous savings behavior. We then extend this two-sector framework to less stylistic models over several chapters that culminate in a two country world model where each country produces two traded goods and a home-good.
KeywordsCapital Stock Total Factor Productivity Computable General Equilibrium Stylistic Model Social Accounting Matrix
Unable to display preview. Download preview PDF.