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 86
... equilibrium , the price of land that is expected to hold in the next period is always the price that does hold . We are now interested in infinite sequences of prices and gross interest rates . The time t temporary equilibrium is an ...
... equilibrium price ) will start a path that moves away from that stationary equilibrium . Prices above the upper stationary equilibrium price cannot be equilibria . Prices below the upper stationary equilibrium follow equi- librium paths ...
... equilibrium where p ( t ) .77 for all t . The other two are at .27 and .93 . This path is an equilibrium price path with a two - period cycle oscillating between .27 = and .93 . Figure 7.9c shows g3 ( ) for economy 5 with d ( t ) = .05 ...
Contents
Describing the Environment | 5 |
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
Copyright | |
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