I have to replicate the paper Investment, Capacity Utilization, and the Real Business Cycle by Greenwood, Hercowitz and Huffman.
jstor.org/discover/10.2307/1 … 2565330227
There are two Problems:
I’m looking for some code. Did anybody do this or has any help for me?
I have to change the Marcov- Process to an AR(1)-Process. Does anyone know how that works?
Thanks in advance!