NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

A Note on the Solution of A Two-Point Boundary Value Problem Frequently Encountered in Rational Expectations Models

Willem H. Buiter

NBER Technical Working Paper No. 12
Issued in June 1981
NBER Program(s):International Trade and Investment, International Finance and Macroeconomics

The paper analyses a class of two-point boundary value problem for systems of linear differential equations with constant coefficients. The boundary conditions are expressed as linear restrictions on the state vector at an initial time and at a finite terminal time. This is applicable even if the terminal conditions involve the asymptotic convergence of the system to steady-state equilibrium. as is frequently the case in eC9nomic applications. It is also a suitable format for numerical applications using existing computer routines. The case in which there are more stable eigenvalues than predetermined state variables is also considered. An example involving a small open economy macroeconomic model is used to illustrate the analysis.

download in pdf format
   (1084 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/t0012

Users who downloaded this paper also downloaded* these:
Buiter t0013 Macroeconometric Modelling for Policy Evaluation and Design
Herbst and Tekin w14474 Child Care Subsidies and Child Development
Fullerton and Gordon A Reexamination of Tax Distortions in General Equilibrium Models
Yermack w21802 Corporate Governance and Blockchains
Myers and Majluf w1396 Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us