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 website contains supplementary material
including programs and answers to exercises.