Walras' Law in the steady state of DSGE models

Costa Junior, Celso José (2016): Walras' Law in the steady state of DSGE models.

Abstract

The determination of the steady state of DSGE models remains the obscure stage of the resolution methods of this modeling. Researchers seek to solve a nonlinear system rather than understand the theory behind these models. In order to fill this gap and help in learning this methodology, this paper develops a procedure for finding the steady- state by using concepts that rest on Walras' Law.

• Item Type: MPRA Paper
• Language: English
• Keywords: C60; E13; E30
• Subjects: E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical

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