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 29
... expected consumption when old because it is the planned consumption that is determined , in part , by an expected price for k - period bonds . The budget constraint in Equation ( 5.2 ) is the budget constraint that the young person expects ...
... expected price of 1 unit of land in time t + 1 in economy 1 were the same as the expected price . of one k 1 - period bond in time t + 1 in economy 2 , then the current prices of land and bonds would be the same and the gross interest ...
... price of land and 1 is the upper bound , the larger the crop , the smaller the set of possible current prices of land . For this example economy , the greater the crop , the higher the time t price of the land for every expected time t + 1 ...
Contents
Describing the Environment | 5 |
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
Copyright | |
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