Numerical Methods in Economics [Hardcover]

Kenneth L. Judd (Author)

Book Description

ISBN-10: 0262100711 | ISBN-13: 978-0262100717 | Publication Date: October 27, 1998

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 web site contains supplementary material including programs and answers to exercises.

Editorial Reviews

Review

"Judd's book is a masterpiece which will help transform the way economictheory is done. It harnesses the computer revolution in the service ofeconomic theory by collecting together a whole array of numerical methodsto simulate and quantify models that used to be purely algebraic andqualitative." Avinash K. Dixit , Sherrerd University Professor of Economics, Princeton University

About the Author

Kenneth L. Judd is a Senior Fellow at the Hoover Institution.

Product Details

• Hardcover: 633 pages
• Publisher: The MIT Press (October 27, 1998)
• Language: English
• ISBN-10: 0262100711
• ISBN-13: 978-0262100717
• Product Dimensions: 9.2 x 7.2 x 1.2 inches
• Shipping Weight: 1.6 pounds (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (6 customer reviews)
• Amazon Best Sellers Rank: #262,015 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

49 of 52 people found the following review helpful:

5.0 out of 5 stars An essential resource for all applied economists., May 3, 1999

By 

Stanley E. Zin ([e-mail]) (Pittsburgh, PA) - See all my reviews

This review is from: Numerical Methods in Economics (Hardcover)

Judd ties together a vast amount of material--from the most basic to the most advanced--that is essential to anyone doing computational work in economics, econometrics or finance. The book is sufficiently self-contained to serve as the single reference book on computational methods for the average economist. In addition, Judd highlights the origins of most methods and points to strengths, weaknesses, and future theoretical research directions. Economic/finance examples are used throughout the book to make the concepts easy to understand and apply. The only thing keeping this book from being perfect is a complete set of software tools, but given the breadth of the book, this might be too much to ask.

9 of 9 people found the following review helpful:

5.0 out of 5 stars An excellent and useful text, September 9, 2006

By 

Gideon P. Du Rand "G du Rand" (New York, NY, USA) - See all my reviews
(REAL NAME)   

This review is from: Numerical Methods in Economics (Hardcover)

This is the type of book I've been looking for for a long time: It tells you directly what problems are solved by numerical approximation, what methods have been developed for such applications, how to use them, what to watch out for and most importantly, what "tricks" are available to make things easier - this is something you will never pick up in an academic paper and in very few courses.

The structure is very illuminating: simple examples of common problems are followed by generalized versions which are usefull for anyone to apply to their own work. Care is taken to point out the strenghts and weaknesses of various procedures so that the best one can be selected.

As to the critisisms that it does not go deep enough: its not supposed to. It covers in enough detail most (all) of the important methods used by the top economic researchers today, and if the problem you are working on requires more detail than is in the text, precise and extensive references are provided to further understand that particular area.

a very practical and forthright book.

1 of 1 people found the following review helpful:

3.0 out of 5 stars Good theoretical book, May 30, 2010

By 

Eszter Hirschberg (Israel) - See all my reviews
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Amazon Verified Purchase

This review is from: Numerical Methods in Economics (Hardcover)

The book is very theoretical and it is really hard to use it in applied work. The book is very demanding and hard to read. You have to have very rich mathematical background to understand the book. Not for beginners to start. A very little number of useful examples which clarify to understand the theoretical staff.