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 44
... land and that there is no crop thrown off by the land . Otherwise the economies are identical - in pref- erences , population , and endowments . If the expected price of 1 unit of land in time t + 1 in economy 1 were the same as the ...
... price of land at time t 1. The young of time t 2 would know that the price of land will be driven up at time t − 1 and that knowledge would drive up the ... value of the returns that the land generates , both 180 Real Economies Reprise.
... land can become as large as necessary to get people to pay some positive price for land at each date t . For economies with d ( t + 1 ) = 0 for all t , the situation is ... price of land converges to some positive 260 Monetary Economies.
Contents
Describing the Environment | 5 |
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
Copyright | |
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