Computational Methods for the Study of Dynamic Economies
Computational Methods for the Study of Dynamic Economies
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Abstract
Macroeconomics increasingly uses stochastic dynamic general equilibrium models to understand theoretical and policy issues. Unless very strong assumptions are made, understanding the properties of particular models requires solving the model using a computer. This volume brings together leading contributors in the field who explain in detail how to implement the computational techniques needed to solve dynamic economics models. It is based on lectures presented at the 7th Summer School of the European Economic Association on computational methods for the study of dynamic economies, held in 1996. A broad spread of techniques is covered, and their application to a wide range of subjects discussed. The book provides the basics of a tool kit that researchers and graduate students can use to solve and analyse their own theoretical models. It is oriented towards economists who already have the equivalent of a first year of graduate studies or to any advanced undergraduates or researchers with a solid mathematical background. No competence with writing computer codes is assumed. After an introduction by the editors, it is arranged in three parts: I Almost linear methods; II Nonlinear methods; and III Solving some dynamic economies.
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Front Matter
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1
Introduction: From Pipeline Economics to Computational Economics
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Part I Almost Linear Methods
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Part II Nonlinear Methods
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5
Discrete State‐Space Methods for the Study of Dynamic Economies
Craig Burnside
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6
Application of Weighted Residual Methods to Dynamic Economic Models
Ellen R. McGrattan
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7
The Parameterized Expectations Approach: Some Practical Issues
Albert Marcet andGuido Lorenzoni
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8
Finite‐Difference Methods for Continuous‐Time Dynamic Programming
Graham V. Candler
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5
Discrete State‐Space Methods for the Study of Dynamic Economies
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Part III Solving Some Dynamic Economies
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End Matter
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