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 27
... sumption of the old at date t equals the total endowment of the old at date t . Summing up these conditions we have on the consumption of the young and the consumption of the old at date t , we get N ( t ) N ( t - 1 ) N ( t ) N ( t - 1 ) ...
... sumption when young will be ch ( t ) = wh ( t ) wh ( t ) − t * , and consumption when old will be ( 3.3 ) ch ( t + 1 ) = w ( t + 1 ) + t * . ( 3.4 ) If t * is a tax on the young , it will be positive ; if it is a tax on the old , it ...
... sumption when young and when old . This economy is more complicated than the Class 1 economy , but we can still solve for equilibrium bequests . In this section we set taxes and transfers to 0. Taxes and transfers could be put into the ...
Contents
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
5 | 65 |
Copyright | |
11 other sections not shown