Real Business Cycle Model: Firms Problem

[@JDEconomics]

Hello Everyone! I hope you are enjoying the free DSGE course. Please leave your comments/feedback! ✅ You can buy the DO File Along with the slides and paper (maths solved) at: jdeconomicstore.com/b/dsgemodelstata ✅ Download for Free the PDF With Dynamic Equations, and see the course outline at: www.jdeconomics.com/dsge-models ☕If you would like to show your appreciation and make a donation: 💳 www.paypal.com/paypalme/JDEconomics?locale.x=en_US Best Regards, Juan D.

[@imanelshair7746]

your tutorials are very useful and much in need , please keep it up. I have a question Please, Why the firm problem isn't intertemporal ,i.e over time , why the firm does not maximize the present discounted value of profits , why we do not have summation from t =0 to infinity as in the utility function , could anyone help me with that? Thank you

[@D102G]

Amazing Job! A CGE model course would be great too.

[@JDEconomics]

Thanks! Kind Regards, JD

[@willemwavefoe553]

Youre amazing

[@JDEconomics]

Thanks!

[@muhammadzubairchishti1795]

Dear Respected Professor! I highly appreciate your generous efforts for free knowledge. Kindly keep it up. Also, teach us how to estimate DSGE model in STATA. And Kindly start CGE model too.

[@JDEconomics]

We are getting there! Shortly all the equations will be written in Stata. Stay tuned! Cheers, JD

[@muhammadzubairchishti1795]

@@JDEconomics Thank you so much Dear Professor!

[@danielefraietta9904]

Hi Juan, great content as usual! one quick question: given that in equation 4 you subtract the constraint (WH-RK), shouldn't it read max P = AKH - (WH-RK) and thus, after removing the brackets AKH -WH+RK? Or am I missing something? Thanks!

[@JDEconomics]

Hi Daniele, thanks for the comment! The budget constraint should have been with a + since it is two costs the firms have. (WH +RK). Equation 4 is correct. P=AKH - (WH + RK). Let me know if that answers the question, but I can see where the confusion can come from. Thanks Again!

[@danielefraietta9904]

@@JDEconomics Hi Juan, thanks for the clarification. In fact, I thought that the sign error could have been in the budget constraint as it stands for the firm's total cost, so a plus sigh would have made more sense. All clear now. Thanks again for the great content!

[@nimafz]

Hi, generally for the firm we solve the “unconstrained” problem. So the cost is not a constraint.

[@JDEconomics]

Hi! Where? Who? In what model? Do you have any references? This model is the ABC of rbc models. You can model the firms without costs, but is that realistic? Idk. Cheers!

[@AryanKhatri-uh7sj]

Hello sir , i m Aryan from india persuing B.A Economics hons . And FRM financial risk management by GARP i want to come canada .for that which master degree suits me the best if i want to work in venture capital / investment banking/ private equity / pension funds/ consultancy etc. Ms financial economics Ms finance CFA MBA Masters in banking and finance

[@JDEconomics]

Ms Finance will help you get into the Canadian Labour market, and the CFA will help you build your profile to be more competent for the Canadian market. Coming into Canada and finding a high qualified job can be challenging if you have no Canadian education, so get your Ms in Finance here and then try to complete the CFA. You'll nail it. Good luck! JD.