Recursive macroeconomic theory

Author: Yang Kuishi, Sa Gent, Chen Yanbin, Wang Zhongyu
Publisher:
Publish Date: 2005-10-01
Features: Recursive methods are a powerful tool in dynamic macroeconomics. This book not only includes introductory materials on recursive tools, such as standard applications in asset pricing, but also covers advanced topics like the analysis of reputation mechanisms and contract design. When discussing these tools, the book provides sufficient technical details to enable readers to handle practical problems with ease. These applications cover many important topics, such as equilibrium asset prices, market incompleteness, wealth distribution, fiscal and monetary theories of inflation, government debt, optimal labor and capital taxes, time consistency and credible government policies, optimal social insurance, economic growth, and labor market dynamics. Where numerical simulations are required, the book not only offers suggestions on how to proceed but also provides references for further reading.