Recursive methods offer a powerful approach for characterizing and solving complicated problems in dynamic macroeconomics. Recursive Macroeconomic Theory provides both an introduction to recursive methods and advanced material, mixing tools and sample applications. The second edition contains...

Dynamical systems -- Deterministic linear systems -- Deterministic nonlinear systems -- Stochastic difference equations -- Markov processes -- Ergodic theory and stationary processes -- Dynamic optimization -- Markov decision process model -- Finite-horizon dynamic programming --...