.png){kind=icon}
Return
Solving dynamic stochastic models with multiple occasionally binding constraints
.png){kind=icon}
PRE
AI
DOI：10.1016/j.econmod.2021.105636.png)
.png){kind=icon}
Original request for help.png){kind=icon}
Share.png){kind=icon}
Save
Abstract
En 中文
Non-negativity and capacity constraints on accumulation, and price floors, have particular relevance for water, oil, gas, electricity, and other energy commodities. Such constraints are empirically relevant; even if historical records do not include periods where the capacity constraint is binding or where marginal value is zero, a positive probability that such events might occur affects rational accumulation and consumption decisions. In this paper we provide sufficient conditions for non-convergence and sufficient conditions for convergence of a solution algorithm widely used to solve and characterize dynamic models, which is fast if it converges. Our results are useful for policy evaluation based on structural econometric estimation involving large numbers of solutions.
Keywords:
Commodities
Storage capacity
Free disposal
Numerical solutions
DSGE
AI Summary
Key information extracted from the uploaded paper, including a brief overview, abstract, background, key highlights, visual analysis, and future outlook.
Journal
IF:
4.7
Papers:
6.6K
Citations:
1.6W
Organization
Cited Papers
ShareSaveIntrogressive Hybridization of Smallmouth Bass (Micropterus dolomieui) and Guadalupe Bass (M. treculi).png)
Copeia
CopeiaIF0
PREAI
ShareSaveShareSave
ShareSaveImproved service method and its positioning performance of the Galileo satellite clock correction
PREAI
ShareSaveShareSave
View more