Dynamic Economic Analysis: Deterministic Models in Discrete Time

Description

Focusing on deterministic models in discrete time, this concise yet rigorous textbook provides a clear and systematic introduction to the theory and application of dynamic economic models. It guides students through the most popular model structures and solution concepts, from the simplest dynamic economic models through to complex problems of optimal policy design in dynamic general equilibrium frameworks. Chapters feature theorems and practical hints, and seventy-five worked examples highlight the various methods and results that can be applied in dynamic economic models. Notation and formulation is uniform throughout, so students can easily discern the similarities and differences between various model classes. Chapters include more than sixty exercises for students to self-test their analytical skills, and password-protected solutions are available for instructors on the companion website. Assuming no prior knowledge of dynamic economic analysis or dynamic optimization, this textbook is ideal for advanced students in economics.

Gerhard Sorger is Professor of Economics at the University of Vienna, Austria where he teaches primarily in the areas of macroeconomics, mathematical economics, and dynamic economic analysis.

'This book offers a comprehensive vision of economic dynamics suitable for graduate students and professionals alike. Gerhard Sorger is a leading researcher with a flair for presenting mathematically challenging theories carefully and rigorously. His text emphasizes the interplay between formal theory and applications with detailed developments of a catalogue of economic models and examples drawn from macroeconomics, growth theory and game theory. There is no other single book readily accessible in the economics literature covering the same wide range of deterministic dynamics and optimization theories with detailed illustrations of those theories in action. It is accessible to students engaged in a self-study program for students engaging with dynamical systems for the first time. Better yet, it offers the topics and treatments for a course in dynamics.' Robert A. Becker, Indiana University, Bloomington 'This is a beautifully written book, providing a completely self-contained introduction to dynamic economic methods and models for graduate students in economics. The masterly exposition strikes a perfect balance between a user-friendly approach and a completely rigorous presentation of the subject matter. The style of writing is marked by exceptional clarity, very much in keeping with the high standards set by the author in his research contributions. The book is neatly divided into two parts, the first providing a comprehensive account of the theory of dynamical systems, and the second the theory and applications of dynamic optimization in settings with single and multiple decision makers. The chapters on Autonomous Difference Equations and Optimization Techniques are real gems, and should form the core material in any course on dynamic economic analysis.' Tapan Mitra, Goldwin Smith Professor of Economics, Cornell University 'Up to now, there are very few books available at the graduate level that introduce the necessary mathematical techniques to study macroeconomics from the viewpoint of nonlinear dynamics. Gerhard Sorger is one of the few theorists who have made profound contributions to the subject. His book beautifully introduces the basic results and synthesizes the latest developments in the discrete time nonlinear growth models. This book is ideally suited as a textbook for graduate courses in macroeconomics and mathematical economics. Gerhard Sorger should be congratulated on his efforts to educate young researchers. I highly recommend this book.' Kazuo Nishimura, RIEB, Kobe University