Universitaires Catholiques de Mons

Closed Form Solution of Nonlinear Rational Expectations Model : On the Role of Interest Rate on Investment

Email address: verschue@fucam.ac.be

Keywords: Nonlinearity, rational expectations, investment

JEL Classifications: C63, E22

Abstract:
In this paper we discuss an attractive solution of a standard non linear dynamic structural model, and apply it both to model agregate investment behaviour and to assess the effects of an interest rate policy on this variable.

PDF file of paper: verschueren.pdf

Session: Macroeconomics

Time: Saturday, 7 July, 8am - 9:30am

Room: C