全球智库信息集成服务系统(G2TT): Continuous-Time Methods for Integrated Assessment Models

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w18365
来源ID	Working Paper 18365
	Continuous-Time Methods for Integrated Assessment Models
	Yongyang Cai; Kenneth L. Judd; Thomas S. Lontzek
发表日期	2012-09-06
出版年	2012
语种	英语
摘要	Continuous time is a superior representation of both the economic and climate systems that Integrated Assessment Models (IAM) aim to study. Moreover, continuous-time representations are simple to express. Continuous-time models are usually solved by discretizing time, but the quality of a solution is significantly affected by the details of the discretization. The numerical analysis literature offers many reliable methods, and should be used because alternatives derived from "intuition" may be significantly inferior. We take the well-known DICE model as an example. DICE uses 10-year time steps. We first identify the underlying continuous-time model of DICE. Second, we present mathematical and computational methods for transforming continuous-time deterministic perfect foresight models into systems of finite difference equations. While some transformations create finite difference systems that look like a discrete-time dynamical system, the only proper way to view the finite difference system is as an approximation of the continuous-time problem. DICE is an example where the usage of finite difference methods from numerical analysis produces far superior approximations than do simple discrete-time systems.
主题	Microeconomics ; Mathematical Tools ; Economics of Information ; Environmental and Resource Economics ; Environment
URL	https://www.nber.org/papers/w18365
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/576041
推荐引用方式 GB/T 7714	Yongyang Cai,Kenneth L. Judd,Thomas S. Lontzek. Continuous-Time Methods for Integrated Assessment Models. 2012.

条目包含的文件
文件名称/大小	资源类型	版本类型	开放类型	使用许可
w18365.pdf（435KB）	智库出版物		限制开放	CC BY-NC-SA	浏览