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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... 45 - degree line out of the origin [ a p ( t ) = p ( t + 1 ) line ] . The higher lines ( that go with the larger crop ) intersect the 45 - degree line at higher prices . For these economies , as the crop goes to 0 , the price of land ...
... 45 - degree line through point C2 . Directly above the point w , on the abscissa , the vertical distance be- tween the endowment point and the intersection of the new 45 - degree line gives the amount of tax taken from this individual ...
... 45 - degree line at point a is g1 / N . If there is only fiat money , the 45 - degree line passes through point c ' ( the dashed 45 - degree line in Figure 12.14 ) and the amount of government revenues is N times the distance wa . As ...
Contents
Describing the Environment | 5 |
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
Copyright | |
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