TY  - BOOK
AU  - Stokey,Nancy L
AU  - Lucas,Jr,Robert E
AU  - Prescott,Edward C.
TI  - Recursive methods in economic dynamics
SN  - 0674750969
U1  - 330.0151 
PY  - 1989///
CY  - Cambridge
PB  - Harvard University Press
KW  - Economics
KW  - Economics mathematics
KW  - Dynamic programming
KW  - Business & Economics
KW  - Recursive method
N1  - Includes index, references and index of theorems; Introduction -- An overview -- Mathematical Preliminaries -- Dynamic Programming under Certainty -- Applications of Dynamic Programming under Certainty -- Deterministic Dynamics -- Measure Theory and Integration -- Markov Process -- Stochastic dynamic Programming -- Applications of Stochastic Dynamic Programming -- Strong Convergence of Markov Processes -- Weak Convergence of Markov Processes -- Applications o convergence Results for Markov Processes -- Laws of Large Numbers -- Pareto Optima and Competitive Equilibria -- Applications of Equilibrium Theory -- Fixed- Point Arguments -- Equilibria in Systems with Distortions
N2  - 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
ER  -