Recursive Methods in Economic Dynamics

　　Review
　　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's Value and Capital or Samuelson's Foundations.
　　--Thomas J. Sargent, Hoover Institution
　　Product Description
　　This rigorous but brilliantly lucid book presents... (展开全部) 　　Review
　　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's Value and Capital or Samuelson's Foundations.
　　--Thomas J. Sargent, Hoover Institution
　　Product Description
　　This rigorous but brilliantly lucid book presents a self-contained treatment of modern economic dynamics. Stokey, Lucas, and Prescott develop the basic methods of recursive analysis and illustrate the many areas where they can usefully be applied.
　　After presenting an overview of the recursive approach, the authors develop economic applications for deterministic dynamic programming and the stability theory of first-order difference equations. They then treat stochastic dynamic programming and the convergence theory of discrete-time Markov processes, illustrating each with additional economic applications. They also derive a strong law of large numbers for Markov processes. Finally, they present the two fundamental theorems of welfare economics and show how to apply the methods developed earlier to general equilibrium systems.
　　The authors go on to apply their methods to many areas of economics. Models of firm and industry investment, household consumption behavior, long-run growth, capital accumulation, job search, job matching, inventory behavior, asset pricing, and money demand are among those they use to show how predictions can he made about individual and social behavior. Researchers and graduate students in economic theory will find this book essential.　　

　　Robert Emerson "Bob" Lucas, Jr. (born September 15, 1937 in Yakima, Washington) is an American economist at the University of Chicago. He is among the 10 best economists in the world according to IDEAS/RePEc. He received the Nobel Prize in Economics in 1995. He is married to economist Nancy Stokey.
　　He received his B.A. in History in 1959 and Ph.D. in Economics in 1964, both from the University of Chicago. He taught at the Graduate School of Industrial Administration (now Tepper School of Business) at Carnegie Mellon University until 1975, when he returned to the University of Chicago.
　　One of the most influential economists since the 1970s, he changed the foundations of macroeconomic theory (previously dominated by the Keynesian economics approach), arguing that a macroeconomic model should be built in analogy with microeconomic models. He is well known for his investigations into the implications of the assumption of rational expectations. He developed the "Lucas critique" of economic policymaking, which holds that relationships that appear to hold in the economy, such as an apparent relationship between inflation and unemployment, could change in response to changes in economic policy. He also developed the Lucas-Islands model, which suggests that people are tricked by unsystematic parts of monetary policy, the Lucas-Uzawa model (with Hirofumi Uzawa) of human capital accumulation, and stated the "Lucas paradox" why not more capital is flowing from developed countries to developing countries.
　　Contents [hide]
　　1 Trivia
　　2 Bibliography
　　3 References
　　4 See also
　　5 External links
　　[edit] Trivia
　　His ex-wife, Rita Lucas, upon their divorce in 1988, had a clause placed in their divorce settlement that she would receive half of any Nobel Prize won by Lucas in the next seven years. When Lucas did win the Nobel Prize in 1995 (falling just within the time limit), she was awarded half of the prize money. [1]
　　He did Economics for his PhD on "quasi-Marxist" grounds. He believed that economics was the true driver of history, and so he planned to fully immerse himself in economics and then migrate back to the history department. [2]
　　[edit] Bibliography
　　Lucas, Robert (1972). "Expectations and the Neutrality of Money". Journal of Economic Theory 4: 103–124. doi:10.1016/0022-0531(72)90142-1.
　　Lucas, Robert (1976). "Econometric Policy Evaluation: A Critique". Carnegie-Rochester Conference Series on Public Policy 1: 19–46. doi:10.1016/S0167-2231(76)80003-6.
　　Lucas, Robert (1988). "On the Mechanics of Economic Development". Journal of Monetary Economics 22: 3–42. doi:10.1016/0304-3932(88)90168-7.
　　Lucas, Robert (1990). "Why Doesn't Capital Flow from Rich to Poor Countries". American Economic Review 80: 92–96.
　　Lucas, Robert (1981). Studies in Business-Cycle Theory. MIT Press. ISBN 0-262-62044-8.
　　Lucas, Robert (1995) - MONETARY NEUTRALITY Prize Lecture - 1995 Nobel Prize in economics , December 7, 1995
　　Stokey, Nancy; Robert Lucas; and Edward Prescott (1989), Recursive Methods in Economic Dynamics. Harvard University Press, ISBN 0674750969.
　　[edit] References
　　Kasper, Sherryl. The Revival of Laissez-Faire in American Macroeconomic Theory: A Case Study of Its Pioneers (2002) ch 7
　　Associated Press (1995-10-21), “Nobel winner noble in loss; accord awards half of prize to ex-wife”, Boston Globe: 65, <http://www.boston.com/globe/search/stories/nobel/1995/1995f.html>
　　[edit] See also
　　Macroeconomics
　　New classical economics
　　Rational Expectations
　　List of economists
　　Nobel Prize in Economics
　　[edit] External links
　　Robert E. Lucas, Jr.'s website at University of Chicago
　　Biography
　　Robert E. Lucas, Jr. – Autobiography
　　Nobel Prize Press Release
　　IDEAS/RePEc