Dynamic General Equilibrium Modelling

Computational Methods and Applications

  • Burkhard Heer
  • Alfred Maußner

Table of contents

  1. Front Matter
    Pages I-XIX
  2. Representative Agent Models

  3. Heterogeneous Agent Models

  4. Tools

    1. Pages 413-485
    2. Pages 487-506
  5. Back Matter
    Pages 507-540

About this book

Introduction

Modern business cycle theory and growth theory uses stochastic dynamic general equilibrium models. Many mathematical tools are needed to solve these models. The book 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. In such economies, the distribution of the individual state variables is endogenous. This part of the book also serves as an introduction to the modern theory of distribution economics. Applications include the dynamics of the income distribution over the business cycle or the overlapping-generations model. Through an accompanying home page to this book, computer codes to all applications can be downloaded.

Keywords

Business Cycles Computational Economics Dynamic General Equilibrium Modeling General Equilibrium General Equilibrium Modeling Growth Theory Heterogeneous Agents Stochastic Rational Expect agents growth growth model linear optimization modeling

Authors and affiliations

  • Burkhard Heer
    • 1
  • Alfred Maußner
    • 2
  1. 1.School of Economics and ManagementFree University of Bolzano-BozenBolzanoItaly
  2. 2.Department of EconomicsUniversity of AugsburgAugsburg

Bibliographic information

  • DOI https://doi.org/10.1007/b138909
  • Copyright Information Springer Berlin · Heidelberg 2005
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Business and Economics
  • Print ISBN 978-3-540-22095-4
  • Online ISBN 978-3-540-27312-7
  • About this book