18.97.9.171
18.97.9.171
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Intrinisic Bubbles , Target Zones and Investment under Uncertainty
Akihisa Shibata
UCI I410-ECN-0102-2008-320-001689173
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Recently continuous-time stochastic models are frequently employed in macroeconomics. This paper reviews three of these recent stochastic macroeconomic models, "intrinsic bubbles", "target zones" and "investment under uncertainty." It is shown that the underlying methods in these model are essentially the same except for boundary conditions and thus can be analyzed in a unified framework.

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