Treating the mathematical methods used in the economic dynamics, this book shows how they are utilised to build and analyse dynamical models. Accordingly, the focus is on the methods, and every new mathematical technique introduced is followed by its application to select economic models. The mathematical methods covered range from elementary linear difference and differential equations and simultaneous systems to the qualitative analysis of non-linear dynamical systems. Stability considerations are stressed throughout, including many advanced topics. Bifurcation theory and chaos theory are also dealt with. The reader is guided through a step-by-step analysis of each topic, be it a mathematical method or an economic model. This "user-friendly" feature is also present in the exercises.
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Since 1974 is Professor Giancarlo Gandolfo full professor of International Economics, Faculty of Economics, Sapienza University of Rome. Since 2005 he is member of the scientific committee of University of Rome La Sapienz Press. His main areas of research are international monetary economics, continuous time econometrics, mathematical methods and models of economic dynamics. He is recipient of several research grants by national and international institutions.
This fourth edition on economic dynamics is the premier source on dynamic mathematical tools for economists, with illustrations from many areas of current economic research. It presents the most advanced areas of nonlinear dynamics in a readable manner.
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