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268891777
Recursive Macroeconomic Theory: A Complete and Patient Solution Manual
Stavka #:
268891777
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- IntroductionThe author is a university professor and economics researcher who believes that every graduate student in economics should work through Recursive Macroeconomic Theory from cover to cover, not only those interested in macroeconomics or financial economics. In the author’s view, the most important word in the title is not “macroeconomic,” but “recursive.” Researchers who master recursive methods can be orders of magnitude more productive than those who do not, much like a 1936 army equipped with powerful tanks confronting one that still relies entirely on cavalry. The author regards this comparison as no exaggeration.Recursive methods teach researchers to formulate economic problems in terms of state variables, continuation values, laws of motion, and fixed points. Once this way of thinking becomes natural, many problems that initially appear historical, institutional, or high-dimensional become far more organized and manageable. For this reason, the manual is intended not only for future macroeconomists. Although the macroeconomic applications are important, the recursive way of thinking is portable across many areas of economics.This book is challenging for almost all mortal beings. Out of love for ambitious and hard-working students, the author wrote this solution manual to serve as a patient companion in their efforts to master recursive methods. Python was chosen for the computational parts of the manual, and the author has no doubt that Thomas Sargent would approve. Python is readable, widely used, and well suited to combining numerical linear algebra, dynamic programming, simulation, and visualization. The accompanying code can be found by searching for enricosargent on GitHub.Students are strongly encouraged to work hard on each exercise before consulting the manual. They should identify the state variables, guess the value function when possible, check the first-order conditions, and follow the recursion for themselves. A solution manual is most valuable after a student has already struggled with the problem. Used at that stage, it can help students compare arguments, correct mistakes, and acquire the habits of recursive reasoning. Consulted too early, however, it may provide the answers while depriving students of the method.
| Publisher | Independently published |
| Publication date | 7 July 2026 |
| Language | English |
| Print length | 469 pages |
| ISBN-13 | 979-8186090823 |
| Item weight | 785 g |
| Dimensions | 15.84 x 3.18 x 23.46 cm |
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Recursive Macroeconomic Theory: A Complete and Patient Solution Manual
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