Methods and Applications of Economic Dynamics (Contributions to Economic Analysis) (Contributions to Economic Analysis)

A discussion of various aspects of dynamic behaviour of empirical macroeconomic, and in particular, macroeconometric models, is presented in this book. The book addresses several theoretical and practical aspects concerning the modelling and analysis of long-run equilibrium behaviour, adjustment dynamics and stability. Tools are developed to identify and interpret the main determinants of the dynamics of models. The tools involve, among others, error-correction mechanisms, eigenvalue analysis, feedback closure rules, graph theory, learning behaviour, steady-state analysis, and stochastic simulation. Their usefulness is demonstrated by interesting applications to a number of well-known national and multi-national models.