Title: Exercises in Dynamic Macroeconomic Theory
Publisher: Harvard University Press Jun 1987
Publication Date: 1987
Language: English
ISBN 10: 0674274768
ISBN 13: 9780674274761
Binding: Taschenbuch
Edition: 5th or later Edition
Condition: Neu
Dimensions: 235 millimeters width by 156 millimeters height by 18 millimeters depth
Weight: 363 grams

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Synopsis

This book is a companion volume to Dynamic Macroeconomic Theory by Thomas J. Sargent. It provides scrimmages in dynamic macroeconomic theory--precisely the kind of drills that people will need in order to learn the techniques of dynamic programming and its applications to economics. By doing these exercises, the reader can acquire the ability to put the theory to work in a variety of new situations, build technical skill, gain experience in fruitful ways of setting up problems, and learn to distinguish cases in which problems are well posed from cases in which they are not. The basic framework provided by variants of a dynamic general equilibrium model is used to analyze problems in macroeconomics and monetary economics. An equilibrium model provides a mapping from parameters of preferences, technologies, endowments, and "rules of the game" to a probability model for time series. The rigor of the logical connections between theory and observations that the mapping provides is an attractive feature of dynamic equilibrium, or "rational expectations," models. This book gives repeated and varied practice in constructing and interpreting this mapping.

About the Author

Rodolfo E. Manuelli is Professor of Economics, Stanford University.

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