UID:
almafu_9958352500702883
Format:
1 online resource (320 pages) :
,
illustrations.
Edition:
Course Book.
Edition:
Electronic reproduction. Princeton, N.J. : Princeton University Press, 2009. Mode of access: World Wide Web.
Edition:
System requirements: Web browser.
Edition:
Access may be restricted to users at subscribing institutions.
ISBN:
9781400829811
Content:
In economic situations where action entails a fixed cost, inaction is the norm. Action is taken infrequently, and adjustments are large when they occur. Interest in economic models that exhibit ''lumpy'' behavior of this kind has exploded in recent years, spurred by growing evidence that it is typical in many important economic decisions, including price setting, investment, hiring, durable goods purchases, and portfolio management. In The Economics of Inaction, leading economist Nancy Stokey shows how the tools of stochastic control can be applied to dynamic problems of decision making under uncertainty when fixed costs are present. Stokey provides a self-contained, rigorous, and clear treatment of two types of models, impulse and instantaneous control. She presents the relevant results about Brownian motion and other diffusion processes, develops methods for analyzing each type of problem, and discusses applications to price setting, investment, and durable goods purchases. This authoritative book will be essential reading for graduate students and researchers in macroeconomics.
Note:
Frontmatter --
,
Contents --
,
Preface --
,
1. Introduction --
,
Part I. Mathematical Preliminaries --
,
Part II. Impulse Control Models --
,
Part III. Instantaneous Control Models --
,
Part IV. Aggregation --
,
A. Continuous Stochastic Processes --
,
B. Optional Stopping Theorem --
,
References --
,
Index.
,
In English.
Language:
English
DOI:
10.1515/9781400829811
URL:
https://doi.org/10.1515/9781400829811
URL:
https://doi.org/10.1515/9781400829811
