Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Minneapolis
Working Papers
Temporal aggregation in a multi-sector economy with endogenous growth
Jean Mercenier
Philippe Michel
Abstract

We provide a theoretical treatment of temporal aggregation in models that exhibit long-term endogenously-generated steady growth; hence generalizing our previous analysis (Econometrica 62, 1994, pp. 635-56). We introduce the property of steady-growth invariance - that the long-term growth of the continuous-time economy not be affected by the discretization - which imposes consistency restrictions on the joint formulation of preferences and stock accumulation of the discrete-time approximation. We establish, under mild conditions, these restrictions in the form of necessary and sufficient conditions on the discretization.


Download Full text
Download Full text
Cite this item
Jean Mercenier & Philippe Michel, Temporal aggregation in a multi-sector economy with endogenous growth, Federal Reserve Bank of Minneapolis, Working Papers 554, 1995.
More from this series
JEL Classification:
Subject headings:
Keywords: Economic development
For corrections, contact Jannelle Ruswick ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal