Computational Appendix to Entry, Exit, Embodied Technology, and Business Cycles
Jeffrey R. Campbell
This appendix provides a detailed exposition of the computational method applied to the model of Campbell (1997). Heterogeneity in the production sector of that model implies that its prices and quantities are contnuous functions on the real line rather than scalars. The computational method used is an extension of standard log-linearization methods. It uses quadrature approximation of integrals to approximate a system of functional equations with a standard system of vector equations. Similar computational problems arise in other economic models which incorporate heterogeneity, such as that of Merz (1996), so the methods of this appendix may be of independent interest to other researchers.
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.