Excercises in Dynamic Macroeconomic Theory (Paperback) (ISBN-13: 9780674274761)

This book is a companion volume to Dynamic Macroeconomic Theory by Thomas J. Sargent. It provides scrimmages in dynamic macroeconomic theory--precisely the kind of drills that people will need in order to learn the techniques of dynamic programming and its applications to economics. By doing these exercises, the reader can acquire the ability to put the theory to work in a variety of new situations, build technical skill, gain experience in fruitful ways of setting up problems, and learn to distinguish cases in which problems are well posed from cases in which they are not. The basic framework provided by variants of a dynamic general equilibrium model is used to analyze problems in macroeconomics and monetary economics. An equilibrium model provides a mapping from parameters of preferences, technologies, endowments, and "rules of the game" to a probability model for time series. The rigor of the logical connections between theory and observations that the mapping provides is an attractive feature of dynamic equilibrium, or "rational expectations," models. This book gives repeated and varied practice in constructing and interpreting this mapping.

Author: Rodolfo E. Manuelli, Thomas J. Sargent
ISBN-10: 0674274768
ISBN-13: 9780674274761
Publisher: Harvard University Press
Language: English
Published: 06/08/1987
Pages: 238
Format: Paperback
Weight: 0.72lbs
Size: 9.22h x 6.15w x 0.65d