Macroeconomic theory. A dynamic general equilibrium approach.
type: Item
instance of: scholarly article
zbMATH Open document ID: 1239.91091
publication date: 2012-04-16T00:00:00Z
Mathematics Subject Classification ID: 91-02
Mathematics Subject Classification ID: 91B50
Mathematics Subject Classification ID: 91B51
Mathematics Subject Classification ID: 91B55
Mathematics Subject Classification ID: 91B62
Mathematics Subject Classification ID: 91B64
Mathematics Subject Classification ID: 90C39
Mathematics Subject Classification ID: 91G80
Mathematics Subject Classification ID: 90C15
Mathematics Subject Classification ID: 60H30
zbMATH DE Number: 6024392
zbMATH Keywords: macroeconomic models
zbMATH Keywords: real business cycle models
zbMATH Keywords: stochastic optimization methods
zbMATH Keywords: economic fluctuations
zbMATH Keywords: rational expectations
author: Michael Wickens
MaRDI profile type: Publication
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title: Macroeconomic theory. A dynamic general equilibrium approach.
review text: This book is a complete presentation of macroeconomic theory in a dynamic general equilibrium framework. The time-horizon of the models presented is equivalent to the set of natural numbers and in some of the questions presented such as financial markets, uncertainty is considered but the state space is considered to be a finite set. Dynamic programming, notions from calculus of variations, and the maximum principle are used or the problems considered are amenable to these treatments.NEWLINENEWLINENEWLINE NEWLINEA standard way of solution for a dynamic optimization problem of a function regarding the whole-time horizon subject to a set of constraints appearing in this book is the step-by-step solution. This way of solution is achieved by using some form of first order conditions and since the time-horizon is infinite a transversality condition is also being used. If the variables involve uncertainty this kind of optimization turns to be a sort of stochastic dynamic programming problem. The extended treatment of the relevance between the search theory that was the topic of the 2010 Nobel Prize in Economics and the efficient wages is an advantage of the book.
reviewed by: Christos E. Kountzakis
description: scientific article; zbMATH DE number 6024392