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Dynamic General Equilibrium Modeling: Computational Methods and Applications pdf offers a fresh look at what would have otherwise been a jaded topic the author of Dynamic General Equilibrium Modeling: Computational Methods and Applications pdf book draws on a vast knowledge bank of insights and experience to execute this work.

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, the book discusses issues that are often neglected in existing work on computational methods, e.g. how to find a good initial value.

In part II, the authors discuss methods in order to solve 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.

In an accompanying home page to this book, computer codes to all applications can be downloaded.

Publisher ‏ : ‎ Springer; 2nd ed. 2009. 2nd printing 2009 edition (August 12, 2009)
Language ‏ : ‎ English
Paperback ‏ : ‎ 734 pages
ISBN-10 ‏ : ‎ 364203148X
ISBN-13 ‏ : ‎ 978-3642031489
Item Weight ‏ : ‎ 2.45 pounds
Dimensions ‏ : ‎ 6.1 x 1.66 x 9.25 inches

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