Introduction

This introduction to general equilibrium modelling takes an integrated approach to the analysis of macroeconomics and finance. It provides students, practitioners, and policymakers with an easily accessible set of tools that can be used to analyze a wide range of economic phenomena.

Key features

Provides a consistent framework for understanding dynamic economic models

Introduces key concepts in finance in a discrete time setting

Develops simple recursive approach for analyzing a variety of problems in a dynamic, stochastic environment

Sequentially builds up the analysis of consumption, production, and investment models to study their implications for allocations and asset prices

Reviews business cycle analysis and the business cycle implications of monetary and international models

Covers latest research on asset pricing in overlapping generations models and on models with borrowing constraints and transaction costs

Includes end-of-chapter exercises allowing readers to monitor their understanding of each topic

Online resources are available at www.cambridge.org/altug_labadie