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Abstract

Most theoretical economic models are conceived in continuous time, but when they are subjected to empirical analysis the standard procedure is to estimate them in discrete time; continuous time econometric procedures are by now well established and we shall apply them to selected topics in international economics

After an introduction, in chap. 2 we demonstrate how an endogenous growth model of an open economy that embodies intertemporally optimizing behaviour of a representative agent can be estimated with continuous-time econometrics; Chapter 3 deals with nominal exchange rate and chaos. In Chapter 4 we put together endogenous growth and the real exchange rate

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