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Preface | |
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Introduction | |
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Basic Models and Solution Methods | |
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The Basic Solow Model | |
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The Basic Model | |
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Technological Growth | |
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The Golden Rule | |
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A Stochastic Solow Model | |
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Log-Linear Version of the Solow Model | |
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Capital | |
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Output | |
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Reprise | |
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Savings in an OLG Model | |
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The Basic OLG Model | |
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An Example Economy | |
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Dynamics | |
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A Stochastic Version | |
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Reprise | |
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Matlab Code Used to Produce Figure 2.2 | |
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Infinitely Lived Agents | |
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A Robinson Crusoe Economy with Fixed Labor | |
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Variational Methods | |
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A Robinson Crusoe Economy with Variable Labor | |
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The General Model | |
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Solution for a Sample Economy | |
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A Competitive Economy | |
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The Second Welfare Theorem | |
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An Example Where the Representative Agent Economy and the Decentralized Economy Are Not Equal | |
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Reprise | |
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Recursive Deterministic Models | |
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States and Controls | |
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The Value Function | |
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A General Version | |
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Returning to Our Example Economy | |
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Another Version of the Same Economy | |
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An Approximation of the Value Function | |
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An Example with Variable Labor | |
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Reprise | |
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Matlab Code for Figures 4.2 and 4.3 | |
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Recursive Stochastic Models | |
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Probability | |
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A Simple Stochastic Growth Model | |
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A General Version | |
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The Problem of Dimensionality | |
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The Value Function for the Simple Economy | |
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Calculating the Value Functions | |
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Markov Chains | |
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Reprise | |
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Matlab Code | |
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Hansen's RBC Model | |
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Hansen's Basic Model | |
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Log Linearization Techniques | |
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The Basics of Log Linearization | |
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Uhlig's Method of Log Linearization | |
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Log-Linear Version of Hansen's Model | |
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Solution Using Jump Variables | |
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Calibration of the Log-Linear Model | |
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Variances of the Variables in the Model | |
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Hansen's Model with Indivisible Labor | |
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Stationary State | |
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Log-Linear Version of the Indivisible Labor Model | |
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Impulse Response Functions | |
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Reprise | |
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Appendix 1: Solving the Log-Linear Model | |
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Appendix 2: Blanchard and Kahn's Solution Method | |
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General Version | |
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Stochastic Shocks | |
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Hansen's Model and Blanchard-Kahn | |
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The Generalized Schur Method | |
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Matlab Code | |
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Solution to Basic Hansen Model | |
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Approximating the Variances | |
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Code for Appendix 2 | |
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Linear Quadratic Dynamic Programming | |
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Taylor Approximations of the Objective Function | |
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The Method of Kydland and Prescott | |
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An Example | |
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Solving the Bellman Equation | |
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Calibrating the Example Economy | |
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Adding Stochastic Shocks | |
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The Example Economy | |
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Calibrating the Example Economy | |
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Hansen with Indivisible Labor | |
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Impulse Response Functions | |
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Vector Autoregressions | |
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An Alternative Process for Technology | |
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Reprise | |
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Matlab Code | |
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Extensions of the Basic RBC Model | |
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Money: Cash in Advance | |
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Cooley and Hansen's Model | |
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Finding the Stationary State | |
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Solving the Model Using Linear Quadratic Methods | |
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Finding a Quadratic Objective Function | |
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Finding the Economy Wide Variables | |
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Solving the Model Using Log Linearization | |
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The Log Linearization | |
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Solving the Log-Linear System | |
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Impulse Response Functions | |
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Seigniorage | |
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The Model | |
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The Stationary State | |
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Log-Linear Version of the Model | |
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Reprise | |
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Appendix 1: CES Utility Functions | |
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Appendix 2: Matrix Quadratic Equations | |
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Matlab Code for Solving the CES Model with Seigniorage | |
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Money in the Utility Function | |
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The Model | |
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Stationary States | |
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Log-Linear Version of the Model | |
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Seigniorage | |
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The Full Model | |
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Stationary States | |
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Log Linearization | |
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Reprise | |
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Staggered Pricing Model | |
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The Basic Model | |
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The Final Goods Firms | |
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The Intermediate Goods Firms | |
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The Family | |
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Equilibrium Conditions | |
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The Full Model | |
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The Stationary State | |
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Log Linearization | |
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Log Linearization of the Firm's Problem | |
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The Final Goods Pricing Rule | |
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The Intermediate Goods Pricing Rule | |
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Inflation Equation (Phillips Curve) | |
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Log Linear Version of the Model | |
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Solving the Log Linear Model | |
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Impulse Response Functions | |
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Inflation Adjustment for Nonoptimizing Firms | |
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The Stationary State | |
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Log Linearization | |
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Solving the Model | |
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Impulse Response Functions | |
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Reprise | |
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Staggered Wage Setting | |
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The Labor Bundler | |
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First-Order Conditions for Families | |
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The Rest of the Model | |
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Equilibrium Conditions | |
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The Full Model | |
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The Stationary State | |
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Log Linearization | |
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Solving the Model | |
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Impulse Response Functions | |
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Reprise | |
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Financial Markets and Monetary Policy | |
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Working Capital | |
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Households | |
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Firms | |
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Financial Intermediaries | |
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The Full Model | |
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The Stationary State | |
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Log Linear Version of the Model | |
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Impulse Response Functions | |
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Economy with Annual Inflation of 100 Percent | |
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Comparative Impulse Response Functions | |
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Central Banking and Monetary Policy Rules | |
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The Model with a Taylor Rule | |
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Stationary States | |
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Log-Linear Version and Its Solution | |
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Comparing a Taylor Rule to a Friedman Rule | |
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Reprise | |
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Small Open Economy Models | |
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The Preliminary Model | |
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The Household | |
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The Firm | |
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Equilibrium Conditions | |
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Stationary State | |
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The Dynamic (Log-Linear) Model | |
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Model with Capital Adjustment Costs | |
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Closing the Open Economy | |
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Interest Rates and Country Risk | |
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The Dynamic Version | |
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The "Closed" Open Economy with Money | |
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The Open Economy Conditions | |
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The Household | |
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Firms | |
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Equilibrium Conditions | |
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The Full Model | |
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The Stationary State | |
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Log-Linear Version of Full Model | |
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Reprise | |
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References | |
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Index | |