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Synopsis
Recursive methods offer a powerful approach for characterizing and solving complicated problems in dynamic macroeconomics. Recursive Macroeconomic Theory provides both an introduction to recursive methods and advanced material, mixing tools and sample applications. The second edition contains substantial revisions to about half the original material, and extensive additional coverage appears in seven chapters new to this edition. The updated and added material covers exciting new topics that further illustrate the power and pervasiveness of recursive methods.Significant improvements to original chapters include a better treatment of the existence of recursive equilibria, an enhanced account of the supermartingale convergence theorem, and an extended treatment of an optimal taxation problem in an economy in which there are incomplete markets. Completely new coverage in the second edition includes an introductory chapter, which gives an overview of the themes uniting the diverse topics treated throughout the book. Two new chapters offer a self-contained account of the optimal growth model and some of its basic applications in macroeconomics and public finance. Other new chapters cover such topics as how to formulate and compute Stackelberg or Ramsey plans in linear economies, sustainable risk-sharing equilibria without commitment, and the application of recursive contracts to topics in international trade. Most chapters conclude with exercises and the book includes two technical appendixes covering functional analysis and control and filtering.
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About the Authors
Lars Ljungqvist is Professor of Economics at the Stockholm School of Economics.
Thomas J. Sargent, awarded the 2011 Nobel Prize in Economic Sciences, is Berkley Professor of Economics and Business at New York University and Senior Fellow at the Hoover Institution.
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- PublisherMIT Press
- Publication date2004
- ISBN 10 026212274X
- ISBN 13 9780262122740
- BindingHardcover
- LanguageEnglish
- Edition number2
- Number of pages800
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