Economic Dynamics

This book provides a thorough introduction to dynamics, and to phase diagrams and their economic application. From the mathematical point of view it covers both quantitative and qualitative dynamic systems; continuous and discrete dynamics; linear and non-linear systems and single equations and systems of equations. It illustrates dynamic systems using Mathematica, Maple V and spreadsheets employing numerous numerical examples. It provides an introduction to phase diagrams and their use in both microeconomics and macroeconomics, explaining the nature of saddle path solutions. Besides standard topics in both microeconomics and macroeconomics, there is an extended treatment of open economy macroeconomics, including overshooting. It also provides an introduction to optimal control theory and chaos theory. Copious exercises are provided along with solutions at the end of each chapter. Online solutions package and instructor's manual available at www.cup.cam.ac.uk/0521479738.