Recursive Methods in Economic Dynamics

ISBN-13: 9780674750968

ISBN-10: 0674750969

Author: Nancy L. Stokey, Robert E. Lucas Jr.

Edition: First Edition

Publication date:
Harvard University Press
Hardcover 608 pages
Economics, Physics
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Acknowledged author Nancy L. Stokey wrote Recursive Methods in Economic Dynamics comprising 608 pages back in 1989. Textbook and etextbook are published under ISBN 0674750969 and 9780674750968. Since then Recursive Methods in Economic Dynamics textbook received total rating of 3.5 stars and was available to sell back to BooksRun online for the top buyback price of $25.42 or rent at the marketplace.


Three eminent economists provide in this book a rigorous, self-contained treatment of modern economic dynamics. Nancy L. Stokey, Robert E. Lucas, Jr., and Edward C. Prescott develop the basic methods of recursive analysis and emphasize the many areas where they can usefully be applied.

After presenting an overview of the recursive approach, the authors develop economic applications for deterministic dynamic programming and the stability theory of first-order difference equations. They then treat stochastic dynamic programming and the convergence theory of discrete-time Markov processes, illustrating each with additional economic applications. They also derive a strong law of large numbers for Markov processes. Finally, they present the two fundamental theorems of welfare economics and show how to apply the methods developed earlier to general equilibrium systems.

The authors go on to apply their methods to many areas of economics. Models of firm and industry investment, household consumption behavior, long-run growth, capital accumulation, job search, job matching, inventory behavior, asset pricing, and money demand are among those they use to show how predictions can be made about individual and social behavior. Researchers and graduate students in many areas of economics, both theoretical and applied, will find this book essential.