Jump to ContentJump to Main Navigation
Recursive Models of Dynamic Linear Economies$
Users without a subscription are not able to see the full content.

Lars Peter Hansen and Thomas J. Sargent

Print publication date: 2013

Print ISBN-13: 9780691042770

Published to Princeton Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691042770.001.0001

Show Summary Details
Page of

PRINTED FROM PRINCETON SCHOLARSHIP ONLINE (www.princeton.universitypressscholarship.com). (c) Copyright Princeton University Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in PRSO for personal use.date: 29 June 2022

Theory and Econometrics

Theory and Econometrics

(p.3) Chapter 1 Theory and Econometrics
Recursive Models of Dynamic Linear Economies

Lars Peter Hansen

Thomas J. Sargent

Princeton University Press

This chapter sets out the book's focus, namely constructing and applying competitive equilibria for a class of linear-quadratic-Gaussian dynamic economies with complete markets. Here, an economy will consist of a list of matrices that describe people's household technologies, their preferences over consumption services, their production technologies, and their information sets. Competitive equilibrium allocations and prices satisfy some equations that are easy to write down and solve. These competitive equilibrium outcomes have representations that are convenient to represent and estimate econometrically. The chapter then discusses the construction of a class of economies, the computer programs used, followed by an overview of the subsequent chapters.

Keywords:   competitive equilibia, linear-quadratic-Gaussian-dynamic economies, complete markets, economy

Princeton Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us.