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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... tax - transfer scheme de- scribed in the example economy above moves individual consumption to point c , where the price line ( at the equilibrium gross interest rate , r ( t ) = 1 ) is identical with the set of efficient symmetric ...
... tax- transfer scheme for its economy . By optimal , we mean tax - transfer schemes that result in Pareto optimal symmetric allocations . In particu- lar , we are looking for the smallest symmetric tax - transfer scheme that will give a ...
... tax- transfer scheme that the government has put into effect in the economy . Recall that tax - transfer schemes provide for the intergenerational trans- fer of goods and that an intergenerational transfer of goods is the object of ...
Contents
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
5 | 65 |
Copyright | |
11 other sections not shown