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| List of Figures | |
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| Dynamic Consumption Theory | |
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| Permanent Income and Optimal Consumption | |
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| Optimal consumption dynamics | |
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| Consumption level and dynamics | |
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| Dynamics of income, consumption, and saving | |
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| Consumption, saving, and current income | |
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| Empirical Issues | |
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| Excess sensitivity of consumption to current income | |
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| Relative variability of income and consumption | |
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| Joint dynamics of income and saving | |
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| The Role of Precautionary Saving | |
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| Microeconomic foundations | |
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| Implications for the consumption function | |
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| Consumption and Financial Returns | |
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| Empirical implications of the CCAPM | |
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| Extension: the habit formation hypothesis | |
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| Dynamic Programming | |
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| Review Exercises | |
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| Further Reading | |
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| References | |
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| Dynamic Models of Investment | |
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| Convex Adjustment Costs | |
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| Continuous-Time Optimization | |
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| Characterizing optimal investment | |
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| Steady-State and Adjustment Paths | |
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| The Value of Capital and Future Cash Flows | |
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| Average Value of Capital | |
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| A Dynamic IS-LM Model | |
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| Linear Adjustment Costs | |
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| Irreversible Investment Under Uncertainty | |
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| Stochastic calculus | |
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| Optimization under uncertainty and irreversibility | |
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| Hamiltonian Optimization Methods | |
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| Review Exercises | |
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| Further Reading | |
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| References | |
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| Adjustment Costs in the Labor Market | |
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| Hiring and Firing Costs | |
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| Optimal hiring and firing | |
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| The Dynamics of Employment | |
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| Average Long-Run Effects | |
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| Average employment | |
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| Average profits | |
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| Adjustment Costs and Labor Allocation | |
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| Dynamic wage differentials | |
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| (Two-State) Markov Processes | |
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| Exercises | |
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| Further Reading | |
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| References | |
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| Growth in Dynamic General Equilibrium | |
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| Production, Savings, and Growth | |
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| Balanced growth | |
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| Unlimited accumulation | |
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| Dynamic Optimization | |
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| Economic interpretation and optimal growth | |
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| Steady state and convergence | |
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| Unlimited optimal accumulation | |
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| Decentralized Production and Investment Decisions | |
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| Optimal growth | |
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| Measurement of "Progress": The Solow Residual | |
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| Endogenous Growth and Market Imperfections | |
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| Production and non-rival factors | |
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| Involuntary technological progress | |
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| Scientific research | |
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| Human capital | |
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| Government expenditure and growth | |
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| Monopoly power and private innovations | |
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| Review Exercises | |
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| Further Reading | |
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| References | |
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| Coordination and Externalities in Macroeconomics | |
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| Trading Externalities and Multiple Equilibria | |
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| Structure of the model | |
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| Solution and characterization | |
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| A Search Model of Money | |
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| The structure of the economy | |
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| Optimal strategies and equilibria | |
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| Implications | |
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| Search Externalities in the Labor Market | |
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| Frictional unemployment | |
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| The dynamics of unemployment | |
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| Job availability | |
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| Wage determination and the steady state | |
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| Dynamics | |
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| Market tightness | |
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| The steady state and dynamics | |
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| Externalities and efficiency | |
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| Strategic Interactions and Multipliers | |
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| Review Exercises | |
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| Further Reading | |
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| References | |
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| Answers to Exercises | |
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| Index | |