This book provides the reader with a practical foundation in general equilibrium theory, embeds the theory in a multi-sector dynamic framework, discusses how to practically link the theory to real economic data, and provides clear instructions on how to use existing software – in this case Mathematica
– to construct model simulations for policy and other analysis.
The book integrates traditional static trade theory into modern neoclassical growth theory so the reader has the sense of building upon known constructs as opposed to learning a sequence of different models. It also provides several examples of real economic problems with policy interests and shows how to "bring these problems to life" with theory and data.
Introduction: Orientation and Focus | The Preliminaries | The Two Sector Ramsey Model | The Three-Sector Ramsey Model | Extensions to the Three-Sector Model | The Extended Three-Sector Model | A Three-Sector - Two-Country World | Data Issues and the Social Accounting Matrix | Solution Methods in Transition Dynamics
Economics and Finance
, Modeling and Simulation