ENGLISH

Dynamic general equilibrium modelling

By Burkhard Heer , Alfred Maußner

Book information

Publisher
Springer
Year
2005
ISBN
9783540220954, 354022095X
LCC
HB145 .H424 2005
Google Books ID
WLRZt6GnPn4C
Open Library ID
OL22621452M
Language
english
Format
PDF
Filesize
3 MB (3557880 bytes)
Edition
1
Pages
547\547
Library
Kolxo3
Scanned
no
Time added
2010-07-29 05:14:56

Description

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.

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