Methods of Macroeconomic Dynamics

Stephen Turnovsky has made numerous important contributions to the field of intertemporal general equilibrium macroeconomics. This new text contains the core of his work and stands apart from other related texts in its treatment of rational expectations methods and its rigorous analysis of policy issues, an overarching concern that runs through the different models.Methods of Macroeconomic Dynamics provides a comprehensive treatment of dynamic modeling for first- and second-year graduate students. It focuses on certain key macroeconomic models -- selected from early as well as recent research - to teach students how dynamic modeling is used to analyze the effects of policy on economic growth and performance. Large portions of the text are devoted to rational expectations models and to the representative agent model in continuous time. Professionals will find the book useful as a reference that offers both a broad overview of the evolution of methods of macroeconomic dynamics and a detailed explanation of the technical aspects of the most recent dynamic models. Organized in four parts, chapters cover traditional macrodynamics, rational expectations, intertemporal optimization and, in what is perhaps the most novel aspect, continuous-time stochastic models. These models have the attractive feature of enabling issues where risk plays a central role -- such as corporate finance and asset privacy -- to be integrated into the macroeconomic system in a comprehensive yet transparent way. Part I condenses much of the material in the author's earlier text, Macroeconomic Analysis and Stabilization Policy (1977), while part II updates some of the subject matter of that text in light of more recent developments. Parts III and IV deal with current topics in macroeconomics, with an emphasis on distortionary taxation, endogenous growth, and open economy issues.Turnovsky, Stephen J. is the author of 'Methods of Macroeconomic Dynamics' with ISBN 9780262200981 and ISBN 0262200988.