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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 | |