Dynamic Economic Analysis
Deterministic Models in Discrete Time

Concise yet rigorous, this textbook provides a clear and systematic introduction to the theory and application of dynamic economic models.

Gerhard Sorger (Author)

9781107443792, Cambridge University Press

Paperback / softback, published 12 February 2015

304 pages, 30 b/w illus.
24.4 x 18.8 x 1.5 cm, 0.64 kg

'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

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.

Preface
Part I. Difference Equations: 1. Basic concepts
2. Linear difference equations
3. Autonomous difference equations
4. One-dimensional maps
Part II. Dynamic Optimization: 5. Optimization techniques
6. Dynamic inconsistency and commitment
7. Dynamic games
8. Dynamic competitive equilibrium
References
Index.

Subject Areas: Game theory [PBUD], Optimization [PBU], Econometrics [KCH], Economics [KC]