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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... government bond at time t and bh ( t ) is the quantity of government bonds purchased by individual h of generation t . We have included taxes in the budget constraints , using the same notation as earlier . A bond is purchased at a ...
... government bonds . A profit of 1 / p ( t ) is made on each purchased bond that is financed by borrowing on the private loan market . Each additional bond purchased by borrowing adds 1 / p ( t ) − r ( t ) > 0 to the endowment side of ...
... bonds it issued in time t . Casual observation of the world reminds us that there are bonds with different maturity dates ; that is , bonds that come due in different periods . The United States government issues Treasury bills , notes , ...
Contents
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
5 | 65 |
Copyright | |
11 other sections not shown