Over the years we have received many requests for an answer book for the exercises in Recursive Methods in Economic Dynamics. These requests have come not from inept teachers or lazy students, but from serious readers who have wanted to make sure their time was being well spent.
For a student trying to master the material in Recursive Methods, the exercises are critical, and some of them are quite hard. Thus it is useful for the reader to be reassured along the way that he or she is on the right track, and to have misconceptions corrected quickly when they occur. In addition, some of the problems need more specific guidelines or sharper formulations, and a few (not too many, we like to think) contain errors — commands to prove assertions that, under the stated assumptions, are just not true.
About the Author
Claudio Irigoyen is a graduate student in economics at the University of Chicago.
Esteban Rossi-Hansberg is Professor of Economics and International Affairs, Princeton University.
Mark Wright is Assistant Professor of Economics, University of California, Los Angeles.