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 51
... equilibrium , the young at time t consume all of their endowment . From condition ( i ) of the definition of a competitive equilibrium , each person's consumption when young must equal that person's demanded consumption . When we ...
... equilibrium conditions ( i ) r ( t ) px ( t ) = p - 1 ( t + 1 ) ( ii ) S , ( r ( t ) ) = Ph ( t ) B ( t ) ( present value condition ) , and ( utility maximization and market clearing condition ) are fulfilled . To find a temporary ...
... condition ( which we found above from the constant returns to scale characteristics of our production function ) is ... equilibrium condition of S , ( r ( t ) ) = K ( t + 1 ) . One of our conditions for an equilibrium is that all ...
Contents
Describing the Environment | 5 |
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
Copyright | |
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