Dynаmic Gеnеrаl Equilibrium Modеling: Computаtionаl Mеthods аnd Applicаtions
Publisher: Springеr
Number of Pages: 702
Published: 2008-12-12
List price: $239.00
Modern business cycle theory and growth theory uses stochastic dynamic general equilibrium models. In order to solve these models, economists need to use many mathematical tools. This book presents various methods in order to compute the dynamics of general equilibrium models. In part I, the representative-agent stochastic growth model is solved with the help of value function iteration, linear and linear quadratic approximation methods, parameterised expectations and projection methods. In order to apply these methods, fundamentals from numerical analysis are reviewed in detail. In particular...