**Hardcover**|

**$94.00 Text**|

**£64.95**| ISBN: 9780262100717 | 656 pp. | 7 x 9 in | September 1998

## Instructor Resources

## Numerical Methods in Economics

## Overview

To harness the full power of computer technology, economists need to use a broad range of mathematical techniques. In this book, Kenneth Judd presents techniques from the numerical analysis and applied mathematics literatures and shows how to use them in economic analyses.The book is divided into five parts. Part I provides a general introduction. Part II presents basics from numerical analysis on R^n, including linear equations, iterative methods, optimization, nonlinear equations, approximation methods, numerical integration and differentiation, and Monte Carlo methods. Part III covers methods for dynamic problems, including finite difference methods, projection methods, and numerical dynamic programming. Part IV covers perturbation and asymptotic solution methods. Finally, Part V covers applications to dynamic equilibrium analysis, including solution methods for perfect foresight models and rational expectation models. A website contains supplementary material including programs and answers to exercises.

## Endorsements

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**Avinash K. Dixit**, Princeton University

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**Jean Charles Rochet**, Professor of Mathematics and Economics, Institut D'économie Industrielle, Toulouse, France

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**W. A. Brock**, Department of Economics, University of Wisconsin

*Numerical Methods in Economics*clearly presents a vast range of materials on this topic, from background mathematics through numerical algorithms to economic applications. Students will find this volume an accessible introduction to the field; experienced practitioners will find it a perennial reference.”

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**James M. Poterba**, Mitsui Professor of Economics, MIT

*Numerical Methods in Economics*is an eminently practical ‘cookbook’ filled with many clearly described recipes for solving a broad variety of models in fields ranging from economic theory, macroeconomics, to public economics. I would recommend that any serious economist have a copy of this book on their desk, regardless of whether their interest in theory or in applications. An understanding of effective numerical methods is quickly becoming an indispensable for doing any sort of high level work in economics.”

—

**John Rust**, Department of Economics, Yale University

## Awards

Honorable Mention in the category of Economics in the 1998 Professional/Scholarly Publishing Annual Awards Competition presented by the Association of American Publishers, Inc.