Synopsis
Recursive methods offer a powerful approach in dynamic macroeconomics. This book contains both an introduction to recursive tools, including standard applications such as asset pricing, and advanced material, including analyses of reputational mechanisms and contract design. The tools are presented with enough technical sophistication to get the reader started working on practical problems. When numerical simulations are called for, the book provides suggestions for how to proceed, as well as references for further reading.
The applications cover many substantive issues in macroeconomics, such as equilibrium asset prices, market incompleteness, wealth distribution, fiscal-monetary theories of inflation, government debt, optimal labor and capital taxation, time consistency and credible government policies, optimal social insurance, economic growth, and labor market dynamics.
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About the Author
Lars Ljungqvist is Professor of Economics at the Stockholm School of Economics, Sweden. Thomas J. Sargent is Professor of Economics at Stanford University and Senior Fellow at the Hoover Institution.
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Recursive Macroeconomic Theory
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ISBN 10: 0262194511
ISBN 13: 9780262194518
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