Introduction to Dynamic Macroeconomic Theory: An Overlapping Generations ApproachEconomies are constantly in flux, and economists have long sought reliable means of analyzing their dynamic properties. This book provides a succinct and accessible exposition of modern dynamic (or intertemporal) macroeconomics. The authors use a microeconomics-based general equilibrium framework, specifically the overlapping generations model, which assumes that in every period there are two generations which overlap. This model allows the authors to fully describe economies over time and to employ traditional welfare analysis to judge the effects of various policies. By choosing to keep the mathematical level simple and to use the same modeling framework throughout, the authors are able to address many subtle economic issues. They analyze savings, social security systems, the determination of interest rates and asset prices for different types of assets, Ricardian equivalence, business cycles, chaos theory, investment, growth, and a variety of monetary phenomena. Introduction to Dynamic Macroeconomic Theory will become a classic of economic exposition and a standard teaching and reference tool for intertemporal macroeconomics and the overlapping generations model. The writing is exceptionally clear. Each result is illustrated with analytical derivations, graphically, and by worked out examples. Exercises, which are strategically placed, are an integral part of the book. |
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Results 1-3 of 83
... gives the same level of utility as allocation C for all generations t , t≥ 1 , and increased consumption to the old ... gives all the efficient symmetric consumption allocations . The allocation that gives the highest utility to all ...
... give off equal amounts of crop . The simplest way to do this is to have all the land be of the same quality and have the crop be proportional to the amount of land . If that is the case , then each unit of land gives off D ( t ) / A ...
... gives .8 + 1.667 ( 1 - ym ) ( 1 − 2 ) = 1.190 ( m + 1-4 ) .4 ) . This equation simplifies to 2.856 ( rm ) 2 - 3.776r + 1.1308 0 . = Solving this quadratic equation gives rm equal to .863 and .458 . Using the second equation of our ...
Contents
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
5 | 65 |
Copyright | |
11 other sections not shown