Recursive Methods in Economic Dynamics
A magnificent work that is bound to have immense influence on the ways economists think about dynamic systems for many years to come. My own guess is that this book will eventually acquire the stature, say, of Hicks'sValue and Capitalor Samuelson'sFoundations. (Thomas J. Sargent, Hoover Institution)The book is atour de force. The authors present a unified approach to the techniques and applications of recursive economic theory. The presentations of discrete-time dynamic programming and of Markov processes are authoritative. There is a wide-ranging series of examples drawn from all branches of the discipline, but with special emphasis on macroeconomics. In the short run, the book will be a vital reference in any advanced course in macroeconomic theory. In the long run, it may help to remove the traditional boundaries between microeconomic theory and macroeconomic theory. (Andrew Caplin, Columbia University)This book is a wonderful collection of results on the techniques of dynamic programming with great applications to economics written by giants in the field. (Sanford J. Grossman, University of Pennsylvania)