New Approaches to Macroeconomic Modeling

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New Approaches to Macroeconomic Modeling

New Approaches to Macroeconomic Modeling
Publisher: Cambridge University Press | ISBN 10: 0521637694 | 1998 | PDF | 308 pages | 6.8 MB


This book contributes substantively to the current state of the art of macroeconomic modeling by providing a method for modeling large collections of heterogeneous agents subject to nonpairwise externality called field effects, i.e. feedback of aggregate effects on individual agents or agents using state-dependent strategies. Adopting a level of microeconomic description that keeps track of compositions of fractions of agents by "types" or "strategies", time evolution of the microeconomic states is described by (backward) Chapman-Kolmogorov equations.

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Tags: Modeling, Macroeconomic, Approaches
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