Numerical Methods in Economics (The MIT Press)

Judd's book is a masterpiece which will help transform the way economic theory is done. It harnesses the computer revolution in the service of economic theory by collecting together a whole array of numerical methods to simulate and quantify models that used to be purely algebraic and qualitative.

Deductive economic theory is dead! Long live computational economic theory. Ken Judd's book is a brilliant exposition of how we can do theory without theorems in economics.

This book is a masterwork written by a giant in the field. Here are very fast computational methods tailor-made by Judd for economics. These methods will enable researchers to dispense with artificial assumptions which have been made in the past in order to purchase analytical tractability. The power of the methods is illustrated by many examples. This book may have the same impact on the practice of economic theorizing as computational methods have had upon statistical inference.

Recent advances in computer power have permitted enormous progress in the numerical solution and analysis of complex economic model. Numerical Methods in Economics clearly presents a vast range of materials on this topic, from background mathematics through numerical algorithms to economic applications. Students will find this volume an accessible introduction to the field; experienced practitioners will find it a perennial reference.

Kenneth Judd's book is a landmark that will establish him as one of the founding fathers of the nascent field of computational economics. The book is an impressive contribution not only for its breadth, but also for its mathematical depth and sophistication. But in the final analysis Numerical Methods in Economics is an eminently practical 'cookbook' filled with many clearly described recipes for solving a broad variety of models in fields ranging from economic theory, macroeconomics, to public economics. I would recommend that any serious economist have a copy of this book on their desk, regardless of whether their interest in theory or in applications. An understanding of effective numerical methods is quickly becoming an indispensable for doing any sort of high level work in economics.