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. |
From inside the book
Results 1-3 of 70
... h and h ' at date t . Figure 1.8 is an Edgeworth box with the origin for the indifference curve set for individual h of generation t ( solid lines ) in the lower left - hand corner and the origin for the indiffer- ence curve set for ...
... each of them to have smoother consumption paths than they would be able to have without trade . Let ( t ) be the lending of person h of generation t . It is measured in terms of the time t good . It is possible for an individual to have ...
... person h receives and " ( 1 ) is the amount of loans that this individual wishes to make . We combine these two budget constraints and find that the single lifetime budget constraint for a member of generation 1 is ch ( 1 ) + ch ( 2 ) r ...
Contents
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
5 | 65 |
Copyright | |
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