Dynamic general equilibrium modeling: computational methods and applications

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 computethe 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 alsoserves 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 thisbook, computer codes to all applications can be downloaded. Introduction to the use of numerical methods for solving dynamic general equilibrium models Applicable to the models most widely used in modern macroeconomics / monetary economics Algorithms and program codes provided on an accompanying website Secondedition with three additional chapters and several new applications INDICE: Representative Agent Models: Basic Models.- Perturbation Methods.-Deterministic Extended Path.- Discrete State Space Methods.- Parameterized Expectations.- Projection Methods. Heterogenous Agent Models: Computation of Stationary Distributions.- Dynamics of the Distribution Function.- Overlapping Generations Models with Perfect Foresight.- Overlapping Generations Models with Uncertainty. Tools: Numerical Methods.- Various Other Tools.

• ISBN: 978-3-540-85684-9
• Editorial: Springer
• Encuadernacion: Cartoné
• Páginas: 702
• Fecha Publicación: 20/10/2009
• Nº Volúmenes: 1
• Idioma: Inglés