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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... quantity th ( t ) of the time t good receives back when old the quantity r ( t ) e ^ ( t ) of the time t + 1 good . Likewise , a borrower of the quantity ( t ) of the time t good pays back when old the quantity r ( t ) h ( t ) of the ...
... quantity of land is offered for sale by the current old . No tombs exist in this economy , so the old have no use for the land after they are dead and will sell all of it . The quantity of land that is offered for sale each period is ...
... quantity of technology - augmented capital . In Equation ( 9.9 ) , an increase in y1 ( t ) is called labor augmenting because it has the same effect on output as an identical proportional increase in the quantity of labor . If y1 ( t ) ...
Contents
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
5 | 65 |
Copyright | |
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