This book integrates the analysis of theoretical models of economic growth and computational methods to produce numerical solutions. It features a detailed discussion of economic policy issues.

This is a book on deterministic and stochastic Growth Theory and the computational methods needed to produce numerical solutions. Exogenous and endogenous growth models are thoroughly reviewed. Special attention is paid to the use of these models for fiscal and monetary policy analysis. Modern Business Cycle Theory, the New Keynesian Macroeconomics, the class of Dynamic Stochastic General Equilibrium models, can be all considered as special cases of models of economic growth, and they can be analyzed by the theoretical and numerical procedures provided in the textbook.

Analytical discussions are presented in full detail. The book is self contained and it is designed so that the student advances in the theoretical and the computational issues in parallel. EXCEL and Matlab files are provided on an accompanying website (see Preface to the Second Edition) to illustrate theoretical results as well as to simulate the effects of economic policy interventions. The structure of these program files is described in "Numerical exercise"-type of sections, where the output of these programs is also interpreted. The second edition corrects a few typographical errors and improves some notation.

Autorentext

Alfonso Novales is a Professor of Economics at the Department of Quantitative Economics at Universidad Complutense (Madrid). He holds a Ph.D. in Economics from the University of Minnesota and a Ph.D. in Mathematics from Universidad del Pais Vasco. He was Assistant Professor at the State University of New York (Stony Brook) and Visiting Professor at the graduate schools of Yokohama University and Keio University. He has been President of the Spanish Economic Association and chairman of FEDEA (Fundación de Estudios de Economía Aplicada, Madrid). He has published in Econometrica, Journal of Economic Dynamics and Control, Journal of Macroeconomics, International Journal of Forecasting, Journal of Forecasting, Journal of Time Series Analysis, Journal of Banking and Finance, Economic Modelling, European Journal of Operations Research, Computational Economics, Computational Statistics, Journal of International Financial Institutions, Markets and Money, International Journal of Moneyand Finance, Journal of Fututrs Markets, Applied Financial Economics, Applied Economics Letters, Quarterly Review of Economics and Finance, Quarterly Journal of Finance, Quantitative Finance, Journal of Risk and Financial Management, and International Journal of Finance, and he has contributed with chapters to several books on Macroeconomics and Econometrics. He is the author of Econometria and Estadistica y Econometría, both textbooks edited by McGrawHill in Spanish. His research interests include Economic Policy Evaluation and Financial Econometrics. Esther Fernández is Associate Professor of Economics at the Department of Quantitative Economics at Universidad Complutense (Madrid). Her Ph.D. dissertation was selected as the best doctoral dissertation in Economics at Universidad Complutense in 1999. Her research interests include Monetary Theory, Economic Growth, and Environmental Economics. She has published at Journal of Economic Dynamics and Control,Energy Policy and Economic Modelling, and Spanish academic journals. Jesús Ruiz is Associate Professor of Economics at the Department of Quantitative Economics at Universidad Complutense (Madrid). He obtained his Ph.D. in Economics from Universidad Complutense in 1997. He has published in Journal of Economic Dynamics and Control, Energy Journal, Energy Policy, International Review of Economic and Finance, Economic Modelling, Journal of Macroeconomics, Empirical -Economics, Applied Financial Economics, Spanish Economic Review and other Spanish journals, and he has contributed with chapters to books on Computational Economics. His research interests include Economic Policy Evaluation in Dynamic Macroeconomic Models and Environmental Economics.

Inhalt
Introduction.- The Neoclassical Growth Model Under a Constant Savings Rate.- Optimal Growth. Continuous Time Analysis.- Optimal Growth. Discrete Time Analysis.- Numerical Solution Methods.- Endogenous Growth Models.- Additional Endogenous Growth Models.- Growth in Monetary Economies: Steady-State Analysis of Monetary Policy.- Transitional Dynamics in Monetary Economies: Numerical Solutions.- Mathematical Appendix.