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Main Author: Hsu, Wei Chun
Format: Preprint
Published: 2025
Subjects:
Online Access:https://arxiv.org/abs/2502.06528
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author Hsu, Wei Chun
author_facet Hsu, Wei Chun
contents This paper integrates the damped harmonic oscillator into DSGE models to better capture delayed economic adjustments. By introducing a damping coefficient, I model economic recoveries as under-damped, critically damped, or over-damped processes. Numerical simulations illustrate how different damping levels affect recovery speed and stability. This approach enhances DSGE models' realism, offering insights into historical economic crises and improving macroeconomic forecasting.
format Preprint
id arxiv_https___arxiv_org_abs_2502_06528
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Incorporating Damped Harmonic Oscillator in DSGE Models
Hsu, Wei Chun
General Economics
Economics
This paper integrates the damped harmonic oscillator into DSGE models to better capture delayed economic adjustments. By introducing a damping coefficient, I model economic recoveries as under-damped, critically damped, or over-damped processes. Numerical simulations illustrate how different damping levels affect recovery speed and stability. This approach enhances DSGE models' realism, offering insights into historical economic crises and improving macroeconomic forecasting.
title Incorporating Damped Harmonic Oscillator in DSGE Models
topic General Economics
Economics
url https://arxiv.org/abs/2502.06528