Solutions Manual for Recursive Methods in Economic Dynamics

Claudio Irigoyen is a graduate student in economics at the University of Chicago. Esteban Rossi-Hansberg is Professor of Economics and International Affairs, Princeton University. Mark L. J. Wright is Assistant Professor of Economics, University of California, Los Angeles.

• Foreword 1. Introduction 2. An Overview 3. Mathematical Preliminaries 4. Dynamic Programming under Certainty 5. Applications of Dynamic Programming under Certainty 6. Deterministic Dynamics 7. Measure Theory and Integration 8. Markov Processes 9. Stochastic Dynamic Programming 10. Applications of Stochastic Dynamic Programming 11. Strong Convergence of Markov Processes 12. Weak Convergence of Markov Processes 13. Applications of Convergence Results for Markov Processes 14. Laws of Large Numbers 15. Pareto Optima and Competitive Equilibria 16. Applications of Equilibrium Theory 17. Fixed-Point Arguments 18. Equilibria in Systems with Distortions

[Recursive Methods in Economic Dynamics] is a tour de force. The authors present a unified approach to the techniques and applications of recursive economic theory. The presentations of discrete-time dynamic programming and of Markov processes are authoritative. There is a wide-ranging series of examples drawn from all branches of the discipline, but with special emphasis on macroeconomics. In the short run, the book will be a vital reference in any advanced course in macroeconomic theory. In the long run, it may help to remove the traditional boundaries between microeconomic theory and macroeconomic theory.