TY  - BOOK
AU  - Hansen,Lars Peter
AU  - Sargent,Thomas J.
TI  - Recursive models of dynamic linear economies
T2  - The Gorman lectures in economics
SN  - 9780691042770 (hardcover : alk. paper)
AV  - HB135 .H36 2014
U1  - 330.01/511352 23
PY  - 2014///
CY  - Princeton, New Jersey
PB  - Princeton University Press
KW  - Economics
KW  - Mathematical models
KW  - local
KW  - Electronic books
N1  - Includes bibliographical references (p. 379-392) and index; Acknowledgements -- Preface -- Overview -- Theory and econometrics -- Tools -- Linear stochastic difference equations -- Efficient computations -- Components of economies -- Economic environments -- Optimal resource allocations -- A commodity space -- Competitive economies -- Representations and properties -- Statistical representations -- Canonical household technologies -- Examples -- Permanent income models -- Gorman heterogeneous households -- Complete markets aggregation -- References -- Subject index -- Author index -- MATLAB index; Economics
N2  - A guide to the economic modeling of household preferences, from two leaders in the field

A common set of mathematical tools underlies dynamic optimization, dynamic estimation, and filtering. In Recursive Models of Dynamic Linear Economies, Lars Peter Hansen and Thomas Sargent use these tools to create a class of econometrically tractable models of prices and quantities. They present examples from microeconomics, macroeconomics, and asset pricing. The models are cast in terms of a representative consumer. While Hansen and Sargent demonstrate the analytical benefits acquired when an analysis with a representative consumer is possible, they also characterize the restrictiveness of assumptions under which a representative household justifies a purely aggregative analysis.

Hansen and Sargent unite economic theory with a workable econometrics while going beyond and beneath demand and supply curves for dynamic economies. They construct and apply competitive equilibria for a class of linear-quadratic-Gaussian dynamic economies with complete markets. Their book, based on the 2012 Gorman lectures, stresses heterogeneity, aggregation, and how a common structure unites what superficially appear to be diverse applications. An appendix describes MATLAB programs that apply to the book's calculations
UR  - https://opac.northsouth.edu/cgi-bin/koha/opac-retrieve-file.pl?id=03a18b36e4fdf6e489a45076e53d0c3b
ER  -