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 90
... periods . The members of generation t are alive in period t ( when they are called the young ) and in period t + 1 ( when they are called the old ) . No member of generation t makes it into period t + 2 ; at the end of period t + 1 they ...
... period bonds . The government promised to tax ( or use some other method ) to raise enough of the time t + 1 good to ... period . We introduce k - period bonds . A k - period bond is one that is issued in period t and will be paid off at ...
... period 1 ? ( Hint : Begin by finding the equilib- rium for periods 2 and onward . Then find the period 1 revenue- maximizing inflation rate . You cannot simply use the seignorage equation given above . ) How is the burden of the ...
Contents
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
5 | 65 |
Copyright | |
11 other sections not shown