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THE Z-TRANSFORM AND COMPARATIVE DYNAMICS IN DISCRETE-TIME MODELS

Published online by Cambridge University Press:  08 December 2011

Liutang Gong  and
Wei Wang
Liutang Gong*
Affiliation:
Peking University
Wei Wang
Affiliation:
Washington University in St. Louis
*
Address correspondence to: Gong Liutang, Guanghua School of Management, Peking University, Beijing, 100871, China; e-mail: [email protected].
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Abstract

This paper develops a general technique for the computation of comparative dynamics in perfect-foresight discrete-time models. The method developed here is both applicable and general; it can be used to analyze the effects of the perturbation of parameters on endogenous variables and the welfare of an economic system derived from more general multisector models. It is neither restricted to the system's dimensions nor restricted by the assumption of distinct eigenvalues in the system.

Keywords

Jordan DecompositionZ-TransformMultidimensional Dynamic Systems
Type
Articles
Information
Macroeconomic Dynamics , Volume 17 , Issue 1 , January 2013 , pp. 155 - 171
Copyright
Copyright © Cambridge University Press 2011

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