Publisher Summary This chapter examines local and global approximation methods that
have been used or have potential future value in economic and econometric analysis. The …

Three eminent economists provide in this book a rigorous, self-contained treatment of
modern economic dynamics. Nancy L. Stokey, Robert E. Lucas, Jr., and Edward C. Prescott …

We describe a general numerical approach, the projection method, to solve operator
equations which arise in economic models. Principles from numerical analysis are then …

This paper develops an intertemporal general equilibrium theory of capital asset pricing.'It is
an attempt to put together ideas from the modern finance literature and the literature on …

We describe and compare several algorithms for approximating the solution to a model in
which inequality constraints occasionally bind. Their performance is evaluated and …

In the past ten or so years, there has been a revival of interest in equilibrium models of the
business cycle. The view had been that accounting for the persistence of cyclical …

Central to business cycle theory as well as to growth theory is the aggregate production
function, which relates the nation's output of goods and services to the inputs of capital and …

What I am going to describe for you is a revolution in macroeconomics, a transformation in
methodology that has reshaped how we conduct our science. Prior to the transformation …

This paper examines existence, continuity, and characterization of optimal paths under
“recursive” preferences. Current utility is a fixed (aggregator) function of current consumption …

This paper develops several comparative dynamics results for Ramsey-type
multidimensional dynamic optimization problems in economics. We provide sufficient …