Macroeconomic Theory / Edition 2

Hardcover (Print)
Buy New
Buy New from
Buy Used
Buy Used from
(Save 28%)
Item is in good condition but packaging may have signs of shelf wear/aging or torn packaging.
Condition: Used – Good details
Used and New from Other Sellers
Used and New from Other Sellers
from $16.26
Usually ships in 1-2 business days
(Save 87%)
Other sellers (Hardcover)
  • All (16) from $16.26   
  • New (3) from $72.00   
  • Used (13) from $16.26   


This manual presents detailed solutions to all the problems contained in Macroeconomic Theory, Second Edition. The material in Sargent's book is up-to-date and quite challenging; an essential ingredient in understanding it is working the exercises.
The emphasis in this manual is on how to use the methods and procedures presented in Macroeconomic Theory, Second Edition to solve its exercises. The exercises not only illustrate the theoretical foundations of macroeconomic research but also treat issues and problems from the recent literature. This manual will serve as a useful reference for students and researchers alike.
"When the manuscript for the first edition of this book was sent to the publisher in 1977, I was only beginning to understand the ramifications of the cross-equation restrictions that the hypothesis of rational expectations imposes on an equilibrium stochastic process of a dynamic model. Some of those ramifications had leaked into the first edition of this book, but many more are present in this edition. A formula expressing these restrictions in linear models was published by Lars Hansen and me in 1980. That formula is applied repeatedly in this edition."
--Preface to the Second Edition
"The first edition appeared at a time when discussions of the 'policy ineffectiveness proposition' occupied much of the attention of macroeconomists. As work of John B. Taylor has made clear, the methodological and computational implications of the hypothesis of rational expectations for the theory of optimal macroeconomic policy far transcend the question of whether we accept or reject particular models embodying particular neutrality propositions. Indeed,relative to the simple early models of Barro and Sargent and Wallace, models in which government policy choices affect allocations require much more intricate exploitation of the cross-equation restrictions of rational expectations in optimally choosing government policy. The current edition contains many more examples of models in which a government faces a nontrivial policy choice than did the earlier edition."
--Preface to the Second Edition

Audience: Graduate students in economics.

Read More Show Less

Product Details

Meet the Author

Steve Heller has been a professional programmer for about 25 years, and is the President of Chrysalis Software Corporation, a consulting firm specializing in high-performance software, and practical, down-to-earth instructional materials. He is the author of two excellent books, Efficient C/C++ Programming and Who's Afraid of C++?.
Read More Show Less

Table of Contents

Nonstochastic Macroeconomics:
The "Classical" Model.
The Keynesian Model.
Tobins Dynamic Aggregative Model.
Miscellaneous Topics.
Dynamic Analysis of a Keynesian Model.
The Investment Schedule.
Introduction to Stochastic Macroeconomics:
Behavior Under Uncertainty.
Implicit Labor Contracts and Sticky Wages.
Difference Equations and Lag Operators.
Linear Least Squares Projections (Regressions).
Linear Stochastic Difference Equations.
The Consumption Function.
Government Debt and Taxes.
Investment Under Uncertainty.
Dynamic Optimal Taxation.
The Phillips Curve.
Optimal Monetary Policy.
Aspects of the New Classical Macroeconomics.
Formulas from Trigonometry.
Author Index.
Subject Index.
Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star


4 Star


3 Star


2 Star


1 Star


Your Rating:

Your Name: Create a Pen Name or

Barnes & Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation


  • - By submitting a review, you grant to Barnes & and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Terms of Use.
  • - Barnes & reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)