Continuous Time Approach of Stock-Flow Consistent Macroeconomic Models

Abstract

The aim of this thesis is to provide tools in order to simplify and extend the analysis of stock-flow consistent macroeconomic models. For models in continuous time, we will focus on stability and steady state solutions, considering constant exogenous parameters.

For models in discrete time, we will derive systems with considerable reduction in complexity and size from rather big linear systems of equations set up by previous authors into much simpler systems of difference equations. These can then also be analyzed from a continuous perspective, if their limits are taken.

We will also see how an alternative continuous layout of the models proposed by us, further reduces the number of dimensions with respect to their counterparts in discrete time, in some cases.