This third edition offers substantial new material, with three entirely new chapters and significant revisions to others. The new content reflects recent developments in the field, further illustrating the power and pervasiveness of recursive methods.

　　New chapters cover asset pricing empirics with possible resolutions to puzzles; analysis of credible government policy that entails state variables other than reputation; and foundations of aggregate labor supply with time averaging replacing employment lotteries. Other new material includes a multi-country analysis of taxation in a growth model, elaborations of the fiscal theory of the price level, and age externalities in a matching model.

　　The book is suitable for both first- and second-year graduate courses in macroeconomics and monetary economics. Most chapters conclude with exercises. Many exercises and examples use Matlab programs, which are cited in a special index at the end of the book.

作者簡介

Lars Ljungqvist

　　現職：Stockholm School of Economics

Thomas J. Sargent

　　現職：New York University

PART I: THE IMPERIALISM OF RECURSIVE METHODS
Ch1 Overview

PART II: TOOLS
Ch2 Time Series
Ch3 Dynamic Programming
Ch4 Practical Dynamic Programming
Ch5 Linear Quadratic Dynamic Programming
Ch6 Search, Matching, and Unemployment

PART III: COMPETITIVE EQUILIBRIA AND APPLICATIONS
Ch7 Recursive (Partial) Equilibrium
Ch8 Equilibrium with Complete Markets
Ch9 Overlapping Generations Models
Ch10 Ricardian Equivalence
Ch11 Fiscal Policies in a Growth Model
Ch12 Recursive Competitive Equilibria
Ch13 Asset Pricing Theory
Ch14 Asset Pricing Empirics
Ch15 Economic Growth
Ch16 Optimal Taxation with Commitment

PART IV: THE SAVINGS PROBLEM AND BEWLEY MODELS
Ch17 Self-Insurance
Ch18 Incomplete Markets Models

PART V: RECURSIVE CONTRACTS
Ch19 Dynamic Stackelberg Problems
Ch20 Insurance Versus Incentives
Ch21 Equilibrium without Commitment
Ch22 Optimal Unemployment Insurance
Ch23 Credible Government Policies, I
Ch24 Credible Government Policies, II
Ch25 Two Topics in International Trade

PART VI: CLASSICAL MONETARY AND LABOR ECONOMICS
Ch26 Fiscal-Monetary Theories of Inflation
Ch27 Credit and Currency
Ch28 Equilibrium Search and Matching
Ch29 Foundations of Aggregate Labor Supply

PART VII: TECHNICAL APPENDICES
A. Functional Analysis
B. Linear projections and hidden Markov models