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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... rate of growth of the capital stock is greater than the rate of growth of technology . We can calculate the limit of the growth rate in a manner similar to the one we used at the end of the preceding section . Writing Equation ( 9.12 ) ...
... rate of growth of the capital stock that we found in the above section , lim K ( t + 1 ) K ( t ) = ( 1 + g ) 1 / ( 1 - a ) , does not depend on the value of ê , but only on the values of a ... growth The Neoclassical Growth Model 255 Reprise.
... growth rates for the two monies that we found above must yield a growth rate for the world money supply equal to 1 / r in order to be consistent with the interest rate that is being used in the aggregate savings functions . This rate of ...
Contents
Describing the Environment | 5 |
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
Copyright | |
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