Economic growth model with constant rate and dynamic memory
Generalization of a constant-rate growth model that takes into account the effects of dynamic memory. Use of derived non-integer orders to describe dynamic memory. The changes in the net investment and the effects of the exponential decaying memory.
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The growth model is used to identify the short run eects of two technology shocks. Neutral shocks aect the production of all goods homogeneously, and investment-specic shocks aect only investment goods. The uctuations at business cycle frequencies.
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