Dynamic Economics: Optimization by the Lagrange Method

by Gregory C. Chow

Overview

This work provides a unified and simple treatment of dynamic economics using dynamic optimization as the main theme, and the method of Lagrange multipliers to solve dynamic economic problems. The author presents the optimization framework for dynamic economics in order that readers can understand the approach and use it as they see fit. Instead of using dynamic programming, the author chooses instead to use the method of Lagrange multipliers in the analysis of dynamic optimization because it is easier and more efficient than dynamic programming, and allows readers to understand the substance of dynamic economics better. The author treats a number of topics in economics, including economic growth, macroeconomics, microeconomics, finance and dynamic games. The book also teaches by examples, using concepts to solve simple problems; it then moves to general propositions.

Product Details

ISBN-13:	9780195101928
Publisher:	Oxford University Press
Publication date:	02/13/1997
Edition description:	New Edition
Pages:	248
Product dimensions:	9.00(w) x 6.64(h) x 0.85(d)
Lexile:	1690L (what's this?)

About the Author

Gregory C. Chow is Class of 1913 Professor of Political Economy, Professor of Econometrics, and Director of the Econometric Research Program at Princeton University. He has also advised the Prime Ministers of Taiwan and China on economic policy and reform. He is the author of numerous books, including Analysis and Control of Dynamic Economic Systems (1975), Econometrics (1983), and Understanding China's Economy (1994).

Editorial Reviews

"Dr. Chow points out that the too-little-known direct Lagrangian procedure delivers all the optimal solutions that the popular indirect-utilities method can deliver, and does so more economically in the sense that redundant laborious calculations of any indirect utilities can be avoided...it is regrettable if the popular indirect method has eclipsed attention by scholars from the efficient and effective direct Lagrangian approach. We are all in Gregory Chow's debt for a cogent and needed important reminder."—Paul Samuelson, Pacific Economic Review

"Dynamic Economics convinced me of the usefulness of the Lagrange method....The book is very clear and easy to follow; applications are interesting and clearly treated."—Alberto Bisin, Massachusetts Institute of Technology

From the Publisher