Name: The ABCs of RBCs By George McCandless
SKU: 9780674028142
Price: 52.18 USD
Availability: InStock

The ABCs of RBCs Summary

The ABCs of RBCs: An Introduction to Dynamic Macroeconomic Models by George McCandless

The ABCs of RBCs is the first book to provide a basic introduction to Real Business Cycle (RBC) and New-Keynesian models. These models argue that random shocks-new inventions, droughts, and wars, in the case of pure RBC models, and monetary and fiscal policy and international investor risk aversion, in more open interpretations-can trigger booms and recessions and can account for much of observed output volatility.

George McCandless works through a sequence of these Real Business Cycle and New-Keynesian dynamic stochastic general equilibrium models in fine detail, showing how to solve them, and how to add important extensions to the basic model, such as money, price and wage rigidities, financial markets, and an open economy. The impulse response functions of each new model show how the added feature changes the dynamics.

The ABCs of RBCs is designed to teach the economic practitioner or student how to build simple RBC models. Matlab code for solving many of the models is provided, and careful readers should be able to construct, solve, and use their own models.

In the tradition of the freshwater economic schools of Chicago and Minnesota, McCandless enhances the methods and sophistication of current macroeconomic modeling.

The ABCs of RBCs Reviews

The ABCs of RBCs fills an important gap in the textbook literature in modern macroeconomics. It presents, in a self-contained, agile fashion, a variety of dynamic macroeconomic models that are currently used to understand business cycles in developed as well as developing countries. -- Martin Uribe, Duke University
The ABCs of RBCs is a focused text that does exactly what it sets out to do, which is to explain the current techniques for the analysis of real business cycle models. A highly useful primer. -- Kim Border, California Institute of Technology
For every economist who ever felt stymied by the process of numerically approximating equilibria of [RBC] models, and for all current and future graduate students who are or who will be aiming to learn this technology, this book is a truly wonderful treatment--a user's guide--to moving from the set of first-order conditions and budget and resource constraints that characterize the solutions to these models to putting these models on a computer and making them operational...This is a textbook in the truest sense--every word, diagram, and table have been assembled to make learning this technology as transparent as possible. For the most part, the exposition is truly outstanding. As you read the text, you feel as if they were detailed notes written by someone in the process of learning and distilling a lot of information about a difficult and nuanced topic. And this is exactly how it was done, as noted by McCandless in the text...While there is some overlap with other treatments in the literature, there are aspects of the book that are done better here than elsewhere...The book excels exactly where many texts do not by being remarkably transparent and explicit. If you occasionally feel that advanced economics textbooks are a bit like those impossible how-to-assemble furniture instructions we have all sweated over, this book is for you...This book would be a terrific fit in a first year graduate course in macroeconomics...or used in a second year course that focuses on quantitative analysis of macroeconomic models. -- Lee E. Ohanian * Journal of Economic Literature *

About George McCandless

George McCandless is an economist at the Central Bank of Argentina.

* Preface * Introduction Part One: Basic Models And Solution Methods 1. The Basic Solow Model * The Basic Model * Technological Growth * The Golden Rule * A Stochastic Solow Model * Log-Linear Version of the Solow Model * Capital * Output * Reprise 2. Savings in an OLG Model * The Basic OLG Model * An Example Economy * Dynamics * A Stochastic Version * Reprise * Matlab Code Used to Produce Figure 2.2 3. Infinitely Lived Agents * A Robinson Crusoe Economy with Fixed Labor * Variational Methods * A Robinson Crusoe Economy with Variable Labor * The General Model * Solution for a Sample Economy * A Competitive Economy * The Second Welfare Theorem * An Example Where the Representative Agent Economy and the Decentralized Economy Are Not Equal * Reprise 4. Recursive Deterministic Models * States and Controls * The Value Function * A General Version * Returning to Our Example Economy * Another Version of the Same Economy * An Approximation of the Value Function * An Example with Variable Labor * Reprise * Matlab Code for Figures 4.2 and 4.3 5. Recursive Stochastic Models * Probability * A Simple Stochastic Growth Model * A General Version * The Problem of Dimensionality * The Value Function for the Simple Economy * Calculating the Value Functions * Markov Chains * Reprise * Matlab Code 6. Hansen's RBC Model * Hansen's Basic Model * Log Linearization Techniques * The Basics of Log Linearization * Uhlig's Method of Log Linearization * Log-Linear Version of Hansen's Model * Solution Using Jump Variables * Calibration of the Log-Linear Model * Variances of the Variables in the Model * Hansen's Model with Indivisible Labor * Stationary State * Log-Linear Version of the Indivisible Labor Model * Impulse Response Functions * Reprise * Appendix 1: Solving the Log-Linear Model * Appendix 2: Blanchard and Kahn's Solution Method * General Version * Stochastic Shocks * Hansen's Model and Blanchard-Kahn * The Generalized Schur Method * Matlab Code * Solution to Basic Hansen Model * Approximating the Variances * Code for Appendix 2 7. Linear Quadratic Dynamic Programming * Taylor Approximations of the Objective Function * The Method of Kydland and Prescott * An Example * Solving the Bellman Equation * Calibrating the Example Economy * Adding Stochastic Shocks * The Example Economy * Calibrating the Example Economy * Hansen with Indivisible Labor * Impulse response functions * Vector Autoregressions * An Alternative Process for Technology * Reprise 178 * Matlab Code Part Two: Extensions Of The Basic Rbc Model 8. Money: Cash in Advance * Cooley and Hansen's Model * Finding the Stationary State * Solving the Model Using Linear Quadratic Methods * Finding a Quadratic Objective Function * Finding the Economy Wide Variables * Solving the Model Using Log Linearization * The Log Linearization * Solving the Log-Linear System * Impulse Response Functions * Seigniorage * The Model * The Stationary State * Log-Linear Version of the Model * Reprise * Appendix 1: CES Utility Functions * Appendix 2: Matrix Quadratic Equations * Matlab Code for Solving the CES Model with Seigniorage 9. Money in the Utility Function * The Model * Stationary States * Log-Linear Version of the Model * Seigniorage * The Full Model * Stationary States * Log Linearization * Reprise 10. Staggered Pricing Model * The Basic Model * The Final Goods Firms * The Intermediate Goods Firms * The Family * Equilibrium Conditions * The Full Model * The Stationary State * Log Linearization * Log Linearization of the Firm's Problem * The Final Goods Pricing Rule * The Intermediate Goods Pricing Rule * Inflation Equation (Phillips Curve) * Log Linear Version of the Model * Solving the Log Linear Model * Impulse Response Functions * Inflation Adjustment for Nonoptimizing Firms * The Stationary State * Log Linearization * Solving the Model * Impulse Response Functions * Reprise 11. Staggered Wage Setting * The Labor Bundler * First-Order Conditions for Families * The Rest of the Model * Equilibrium Conditions * The Full Model * The Stationary State * Log Linearization * Solving the Model * Impulse Response Functions * Reprise 12. Financial Markets and Monetary Policy * Working Capital * Households * Firms * Financial Intermediaries * The Full Model * The Stationary State * Log Linear Version of the Model * Impulse Response Functions * Economy with Annual Inflation of 100 Percent * Comparative Impulse Response Functions * Central Banking and Monetary Policy Rules * The Model with a Taylor Rule * Stationary States * Log-Linear Version and Its Solution * Comparing a Taylor Rule to a Friedman Rule * Reprise 13. Small Open Economy Models * The Preliminary Model * The Household * The Firm * Equilibrium Conditions * Stationary State * The Dynamic (Log-Linear) Model * Model with Capital Adjustment Costs * Closing the Open Economy * Interest Rates and Country Risk * The Dynamic Version * The Closed Open Economy with Money * The Open Economy Conditions * The Household * Firms * Equilibrium Conditions * The Full Model * The Stationary State * Log-Linear Version of Full Model * Reprise * References * Index

Additional information

Sku

CIN0674028147G

ISBN 13

9780674028142

ISBN 10

0674028147

Title

The ABCs of RBCs: An Introduction to Dynamic Macroeconomic Models by George McCandless

Author

George McCandless

Condition

Used - Good

Binding type

Hardback

Publisher

Harvard University Press

Year published

20080401

Number of pages

448

Prizes

N/A

Cover note

Book picture is for illustrative purposes only, actual binding, cover or edition may vary.

Note

This is a used book - there is no escaping the fact it has been read by someone else and it will show signs of wear and previous use. Overall we expect it to be in good condition, but if you are not entirely satisfied please get in touch with us

The ABCs of RBCs George McCandless

The ABCs of RBCs by George McCandless

Summary

Faster Shipping

The ABCs of RBCs Summary

The ABCs of RBCs: An Introduction to Dynamic Macroeconomic Models by George McCandless

The ABCs of RBCs Reviews

About George McCandless

Table of Contents

Additional information

Customer Reviews - The ABCs of RBCs