It provides scrimmages in dynamic macroeconomic theoryprecisely the kind of drills that people will need in order to learn the techniques of dynamic programming and its applications to economics. It represents the current, stateoftheart macroeconomic theory. This book on dynamic equilibrium macroeconomics is suitable for graduatelevel courses. Dynamic macroeconomics is an attempt to revitalize the traditions of nonmarket clearing approaches to macroeconomics. Show that, depending notably on the values of sand n, the modern sector may take over the whole economy, or in the contrary regress to zero. The theory of economic growth provides another example of the. Recursive macroeconomic theory international growth centre. The basic analytical tools for dynamic macroeconomics or recursive macroeconomics are.
Solution methods for microeconomic dynamic stochastic optimization problems march4,2020 christopherd. Humcap is a growth model with human capital with wealth and poverty traps, while uncer is a version of the model with uncertainty. It is the perfect resource for students and researchers. Dynamic macroeconomic analysis dynamic stochastic general equilibrium dsge models have begun to dominate the. Macroeconomists study topics such as gdp, unemployment rates, national income, price indices, national income, output, consumption. The exercises file contains the answers to the exercises in the book. Introduction fundamentals dynamic programming optimal control concluding remarks foundations of dynamic macroeconomic analysis ping wang, washington university in st. Each result is illustrated with analytical derivations, graphically, and by worked out examples. Macroeconomic theory dirk krueger1 department of economics university of pennsylvania january 26, 2012 1i am grateful to my teachers in minnesota, v. Solutions to the problems in introduction to dynamic macroeconomic theory july 10, 2008 exercises 1.
Macroeconomic theory and policy 2nd edition andolfatto, david simon fraser university 1 january 2008 online at. This includes regional, national, and global economies. Exercises in dynamic macroeconomic theory in searchworks. Using sophisticated tools from dynamic analysis, the authors introduce a consistent, integrated framework for disequilibrium macroeconomic dynamics and explore its relationship to the competingand currently dominantequilibrium dynamics. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Solutions to the problems in introduction to dynamic. 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.
While you have taken intermediate macro, most of mishkins book. This book truly offers something new by emphasizing the general equilibrium character of. Introduction to dynamic macroeconomic theory humcap. As already noted in the introduction, the distinction between short and long. Modern macroeconomic theory with emphasis on shortrun general equilibrium models. The most important omission is the fact that these notes do not cover dynamic macroeconomic models in any detail. Most of the models we meet will be nonlinear, and the emphasis is on getting to grips with nonlinear systems in their original form, rather than using crude approximation techniques such as linearization. Macroeconomic theory this is a wikipedia book, a collection of wikipedia articles that can be easily saved, imported by an external electronic rendering service, and ordered as a printed book. A basic dynamic equation 81 problems 83 5 nonclearing markets and imperfect competition 85 5. V chari, timothy kehoe and ed ward prescott, my excolleagues at stanford, robert hall, beatrix paal and tom. These models describe the evolution of macroeconomic activity as arecursive sequence of outcomes based upon the optimal decision rules of rational households. As such, the course will consist of a fairly thorough presentation of the ideas and techniques contained in the articles listed below. Smith and others published introduction to dynamic macroeconomic theory. Lecture notes macroeconomic theory i economics mit.
Humcap and uncer are the drafts of two additional chapters. In macroeconomic models, dynamic behaviour often takes the form of relation. Notes on macroeconomic theory university at albany, suny. Exercises in recursive macroeconomic theory preliminary and incomplete stijn van nieuwerburgh pierreolivier weill lars ljungqvist thomas j. Lecture note on classical macroeconomic theory econ 5 prof. This book is a companion volume to dynamic macroeconomic theory by thomas j. This book provides a succinct and accessible exposition of modern dynamic or intertemporal macroeconomics. Macroeconomics investigates aggregate behavior by imposing. Solvingmicrodsops, march 4, 2020 solution methods for. The focus is primarily on stochastic systems in discrete time.
Bohn this course will examine the linkages between interest rates, money, output, and inflation in more detail than mishkins book. A classic macro text that presents the basics of some of the workhorse models in the dynamic general equilibrium area. The history of macroeconomics from keyness general. Macroeconomic theory is the most uptodate graduatelevel macroeconomics textbook available today. Questions to accompany chapter 2 1 we have assumed that the economy discounts speriods ahead using the geometric or exponential discount factor. Find materials for this course in the pages linked along the left. This book truly offers something new by emphasizing the general equilibrium character of macroeconomics to explain effects across the whole economy, not just part.
Thus, these notes are not a substitute for a textbooklecture i. This revised second edition emphasizes the general equilibrium character of macroeconomics to explain effects across the whole economy while taking into account recent research in the field. First, to the extent that the deep parameters describing preferences and constraints are approximated reasonably well, the theory can provide reliable predictions. Introduction to dynamic macroeconomic analysis course description. Macroeconomics is now rmly grounded in the principles of economic theory v. These assumptions are used in order to build macroeconomic models.
Chapter 1 simple representative agent models this chapter deals with the simplest kind of macroeconomic model, which abstracts from all issues of heterogeneity and distribution among economic agents. This course is designed as an introduction to dynamic macroeconomic analysis, particularly recursive methods. Macroeconomic theory hui he department of economics university of hawaii at manoa october, 2007. Macroeconomics tries to understand the market interactions and the decisions in market settings. Macroeconomic variables can then be computed by summing up the actions of all individuals. Therefore theory, intuition, and observation together are vital for the training of a professional economist. We begin this part with an introduction to dynamic general equilibrium models. Course objectives students in this course are expected to learn about. If productivity growth is positive and endogenous, tradeinduced increases in productivity may come at the expense of pro. Carroll 1 abstract these notes describe tools for solving microeconomic dynamic stochastic optimization problems, and show how to use those tools for e. Econ 5118 macroeconomic theory lakehead university. Recursive macroeconomic theory lars ljungqvist, thomas j.1409 1360 973 1029 96 988 472 79 358 263 728 539 354 1186 1084 715 734 1181 940 514 815 838 390 351 1423 833 418 613 1508 1075 192 595 1490 494 126 301 80 155 1474 804 780 998 680 639