IEEE JOURNAL ON SELECTED AREAS IN COMMUNICATIONS, VOL. 8, AUGUST 2006 1421 Guest Editorial Nonlinear Optimization of Communication Systems. Topological shape optimization design of. Troubleshooting and Optimization of Commercial. Critical Elements of Success in Vertical Basket Centrifuge Process. Something Old, Something New. ELEMENTS OF DYNAMIC OPTIMIZATION. ELEMENTS OF DYNAMIC OPTIMIZATION. An optimization study. Recommended for publication by Associate Editor K. Chiang upon evaluation of. Here, i represents the number of number of elements.
Cyclical Fluctuations in Continuous Time Dynamic Optimization Models: Survey of General Theory and an Application to Dynamic Limit Pricing. In this chapter, we reconsider the analytical results on the existence of cyclical fluctuations in continuous time dynamic optimization models with two state variables and their applications to dynamic economic theory. In the first part, we survey the useful analytical results which were obtained by Dockner and Feichtinger (J Econom 5.
A Mathematical Note on Stabilization Policy and Dynamic Inefficiency. Elements of dynamic optimization. A Mathematical Note on Stabilization Policy and. Editor, Shanghai Scientific. Fundamental Methods of Mathematical Economics by Alpha C. Elements of Dynamic Optimization (Hardcover). Editor-in-Chief Chuan Chiang Chen. Journal of Applied Mechanical Engineering is an Open Access journal and aims to. Design of Elements is a required course for.
Liu (J Math Anal Appl 1. Asada and Yoshida (Chaos, Solitons and Fractals 1. In the second part, we provide an application of these analytical results to a particular continuous time dynamic optimizing economic model, that is, a model of dynamic limit pricing with two state variables, which is an extension of Gaskins (J Econom Theor 3: 3. Key words. Cyclical fluctuations. Continuous time. Dynamic optimization models. Hopf Bifurcation. Dynamic limit pricing.
My Homepage: Reviews Schreviews, Part 3. Introduction. The domain of graduate macroeconomics texts in the market today is relatively small. Even so, the choice of a particular text tends to vary from department to department, even from instructor to instructor. Several texts have established themselves as standards, and even when not used as a primary text, are often cited as supplementary ones on instructors. This review will provide a graduate student.
At the same time, the review provides the unique perspective of a graduate student in the evaluation of these texts, a viewpoint that may be lost on battle- hardened professors and researchers. Reviews therefore (intentionally) either completely ignore, or relegate to a secondary consideration, each book. Nonetheless, many considerations of readers in these categories intersect with those of graduate students, and so this review might well be of value to this wider audience.
The second edition is not substantially different from the first, although it adds a chapter on macroeconomic policy (the first interweaved discussions of fiscal and monetary policy into other chapters), and updates several others, especially with regard to empirical results. It eases the reader into most chapters, and even readers who have no macroeconomics background will not encounter major problems (save for the exception of the chapter on Keynesian macro, and clearly some exposure to micro would be desirable). The text does expect some basic calculus and employs a liberal amount of algebra, but most chapters do not require mathematical sophistication beyond this level (some basic dynamic programming at the level of Chiang (1. The book is also very strong on comparative statics analyses - in fact, in this respect, the book does a better job than the competition.
For example, most chapters terminate with a section on empirical applications. This allows the reader to evaluate the validity of the theory, since at graduate level, one needs to be discerning about proposed theories, and not be swept away by elegant math with little empirical support. Hence, students from more rigorous doctoral programs might find Advanced Macroeconomics insufficiently advanced; the book would thus make for good background reading, but in these cases, is inadequate as a primary text. This, however, does not disqualify the book from being used at the advanced undergraduate or masters level. The book treats the main foundations of economic growth - both exogenous and endogenous - at a fairly brisk pace, starting with the basics of both in the first chapter (the Solow- Swan model and the AK model, respectively). The book's style is not dissimilar to Blanchard & Fisher's opening chapters, and some might view it as an updated, although somewhat more pithy, version of that text.
Consequently, most first- year courses will (conceivably) only progress through till chapter five of the book (possibly leaving out the proposition- proving appendices along the way), leaving the chapters on technological change and diffusion, labor changes, and empirics to later courses. Throughout, the authority of two leading figures in the field shines through, but despite these credentials, the book is not inaccessible. Each is liberally annotated, allowing a student to move from the more abstract equations to the geometric presentation - which is clearly an advantage when seeking to build intuition as well as helping readers internalize the models. The appendices are also useful not just for those intending to specialize in macro but also for those who simply have an intellectual interest in exploring various minutiae associated with the models. As such, readers whose prior preparation was mainly built on Chiang (1.
Simon & Blume (1. The coverage, admittedly, is slightly biased towards a New Keynesian viewpoint, but the overall presentation is complete. It should be noted, however, that the text does evoke corner reactions from most students - either they love the text, or they absolutely detest it.
Clearly, then, the emphasis is on macroeconomic theory - the reader would therefore need a certain level of discipline and maturity to carry these models into the context of real- world cases. Still, the conscientious reader will glean from this book a thorough grounding in (somewhat dated) modern macroeconomics, one that is careful to instill a sense of appreciation for the train of intellectual development of each idea.
For example, in the chapter on money, Blanchard and Fisher begin with the Samuelson OLG model with money, move on to Clower's cash- in- advance constraint model, before a long discussion of the Baumol- Tobin GE model with money. Most chapters are not excessively technical, although chapter five (on multiple equilibria and stability) does require a fair amount of patience (and persistence) on the part of the student to plough through. However, in personal communication with on eof the authors, it appears that the esteemed professors have no plans to offer an updated version of the book. Nonetheless, the superb presentation, careful rigor, and significant coverage clearly earn the book the title of the best introductory macro text at the graduate level. The chapter on search models, for example, deals with Mc. Call's and Jovanic's models, as opposed to the more standard Pissarides treatment.
Similarly, topics such as competitive equilibrium with complete markets, models of incomplete markets, and optimal social insurance command extensive coverage. Even the chapter on OLG models adopts the graphical apparatus from authors such as Gale and Brock in introducing the model, rather than the more common Samuelson style. Clearly, readers will have to believe (as the authors do) in the universality of the recursive approach, and be willing to invest their intellectual capital in it. Equation density is high, and although the opening chapters purportedly build the mathematical foundations used in the rest of the book, unless these topics are specifically addressed in lectures, it can be rather opaque to the reader. In addition, it assumes some familiarity with time series analysis, since topics such as Markov chains and stochastic linear difference equations are introduced with little elaboration.
Finally, the book is not ashamed of introducing numerical techniques, and hence those without some background in this area (not quite to the level of Judd (1. However, it is not recommended for those engaging in self- study, or for students who are more inclined towards a less mathematical treatment.
Like the Blanchard & Fisher text, it is very much of an acquired taste. The book is a pedagogical marvel, and the exposition not only makes the material interesting, but also accessible. While the authors have written the text with second- year students in international finance in mind, the text can be easily adapted to a first- year macroeconomics course, skipping the parts that are of greater interest only to international economists. Most students will find these boxes a breath of fresh air, since they often link the theoretical material to real- world applications. The boxes also serve to update the reader on the state of empirical work in these respective areas. Optimization is dynamic, but the authors have taken the effort to gradually build up the student's abilities (and confidence) by starting with a simple two- period, real model, before extending the analysis to multiple periods and flexible prices, culminating in the sticky price, monetary model of chapter 1. Although it is unlikely that the book can be appreciably covered in a semester, a selection of topics would render the text an excellent, micro- founded introduction to (open- economy) macroeconomics.
Most of the models are in discrete time, and are solved via substitution of constraints into the objective function to render an unconstrained maximization/minimization problem. They deviate from this only in certain cases, such as in the section dealing with the Tobin model of capital adjustment costs (where the Langrangian is employed). The first is how well the authors have managed to synthesize the traditional macroeconomics literature with the work on international finance, thus providing a smooth and coherent treatment of open- economy issues, such as the current account and exchange rate, early on in the graduate student's career. Second, the chapters on sticky- price models (chapters 8- 1. New Keynesian models. In particular, chapter 1. The stress is on the dynamics of macroeconomics, and, as the title implies, the exposition concentrates on methodologies employed in macrodynamics.
The book may be divided into four logical parts: (a) Traditional models, which essentially covers the IS- LM and AD- AS model, but with asset accumulation in order to introduce dynamics; (b) Rational expectations models, which introduces the models such as the Cagan hyperinflation, Lucas supply function, and Barro- Gordon models; (c) Intertemporal optimization, which builds a representative agent model and subsequently applies it to various contexts such as taxation and monetary policy; and (d) Applications and extensions, with a concentration on endogenous growth theory and continuous time stochastic optimization. Most models are presented in continuous time, which can be a hurdle for students without an adequate background in differential equations. In addition, Turnovsky's style of introducing models involves a presentation of key equations, followed by a discussion of each. This means that the text is structured more as expanded lecture notes, rather than a traditional textbook. The result is that the text will be very valuable in the hands of a competent instructor, but is less useful for self- study purposes.
Instructors might relish the increased flexibility offered by this, but readers will need to carefully work through the text in order to glean key models.