Modern business cycle theory and growth theory uses stochastic dynamic general equilibrium models. Many mathematical tools are needed to solve these models. The book presents various methods for computing the dynamics of general equilibrium models. In part I, the representative-agent stochastic...

Part I: Representative Agent Models: Basic Models -- Perturbation Methods: Framework and Tools -- Perturbation Methods: Solutions -- Perturbation Methods: Model Evaluation and Applications -- Weighted Residuals Methods -- Simulation-Based Methods -- Discrete State Space Value Function Iteration...

This paper introduces the reader into the apparatus behind the popular New Keynesian Phillips (NKPC) curve. It derives several log-linear versions of this curve and recursive formulations of the Calvo-Yun price staggeringmodel that is behind this curve. These formulations can be used for...