An Introduction to Economic Dynamics

An examples-driven treatment of introductory economic dynamics for students with a basic familiarity of spreadsheets.

Ronald Shone (Author)

9780521800341, Cambridge University Press

Hardback, published 13 September 2001

238 pages, 5 b/w illus. 3 tables
24.4 x 17 x 1.4 cm, 0.58 kg

'Shone's book is based on the philosophy of learning by experimentation. This book, together with a web site with additional downloadable material, provides a modern learning environment which makes economic dynamics even more fun both for undergraduate students and their teachers.' Professor Cars Hommes, Center for Nonlinear Dynamics in Economics and Finance (CeNDEF), Department of Economics and Econometrics, University of Amsterdam

An examples-driven treatment of introductory economic dynamics for students with a basic familiarity with spreadsheets. Shone approaches the subject with the belief that true understanding of a subject can only be achieved by students themselves setting out a problem and manipulating it experimentally. Although all economics students now have access to spreadsheets, they are often used for little more than graphing economic data. This book encourages students to go several stages further and set up and investigate simple dynamic models. The book presents the essentials of macro and micro economic dynamics, including: demand and supply dynamics, Keynesian dynamics, IS-LM, Inflation-unemployment, dynamics of the firm, rational expectations and saddle points, fiscal dynamics and the Maastricht Treaty and Chaos theory. The book contains 50 exercises. The support website contains an additional 100 questions for students and 100 for lecturers: www.cambridge.org/resources/economics.

Preface
1. Introduction
2. Demand and supply dynamics
3. Simple Keynesian dynamics
4. Constructing trajectories in the phase plane
5. IS-LM dynamics
6. Inflation-unemployment dynamics
7. Dynamics of the firm
8. Saddles and rational expectations
9. Fiscal dynamics and the Maastricht Treaty
10. A little bit of chaos
Brief answers to selected exercises
Further reading.

Subject Areas: Applied mathematics [PBW], Microeconomics [KCC], Macroeconomics [KCB], Economic theory & philosophy [KCA]