Dynamic General Equilibrium Modelling || Projection Methods
β Scribed by ,
- Book ID
- 118000486
- Publisher
- Springer-Verlag
- Year
- 2005
- Tongue
- German
- Weight
- 593 KB
- Edition
- 1
- Category
- Article
- ISBN-13
- 9783540220954
No coin nor oath required. For personal study only.
β¦ Synopsis
Modern business cycle theory and growth theory uses stochastic dynamic general equilibrium models. Many mathematical tools are needed to solve these models. The book presents various methods for computing 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. Part II discusses methods for solving heterogeneous-agent economies. In such economies, the distribution of the individual state variables is endogenous. This part of the book also serves as an introduction to the modern theory of distribution economics. Applications include the dynamics of the income distribution over the business cycle or the overlapping-generations model. Through an accompanying home page to this book, computer codes to all applications can be downloaded.
π SIMILAR VOLUMES
Our purpose is to argue the inevitable and lasting role which homotopy methods will play in both theoretical and applied economic analysis. The essence of our position is that large equilibrium models are needed to anticipate adjustments in the economy following policy changes or shock events, and t