Modern business cycle theory and growth theory uses stochastic dynamic general equilibrium models. A wide variety of mathematical tools are needed to solve these models. This book presents methods used to compute the dynamics of general equilibrium models.

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

Introduction to the use of numerical methods for solving dynamic general equilibrium models Applicable to the models most widely used in modern macroeconomics / monetary economics Algorithms and program codes provided on an accompanying website Second edition with three additional chapters and several new applications Includes supplementary material: sn.pub/extras

Autorentext

Burkhard Heer is professor of public economics at the University of Augsburg, Germany. Previously, he was professor of economics at the Universities of Bolzano, Bamberg, and Innsbruck. Burkhard Heer received his Phd in economics from the University of Cologne, Germany, in 1996. He was visiting scholar at various institutions including Georgetown University, Stanford University, Fordham University at New York, University of Quebec at Montreal, University Pompeu Fabra in Barcelona, Federal Reserve Bank at St. Louis, and a summer intern at the International Monetary Fund in Washington, D.C. Burkhard Heer is also affiliated with the Center for Economic Studies (CESifo), Munich. His research interests include public economics and macroeconomics. He also published a Springer textbook on "Dynamic General Equilibrium Modeling" with Alfred Maußner.

Inhalt
Representative Agent Models.- Basic Models.- Perturbation Methods.- Deterministic Extended Path.- Discrete State Space Methods.- Parameterized Expectations.- Projection Methods.- Heterogeneous Agent Models.- Computation of Stationary Distributions.- Dynamics of the Distribution function.- Deterministic Overlapping Generations Models.- Stochastic Overlapping Generations Models.- Tools.- Numerical Methods.- Various Other Tools.