Honorable Mention in the category of Economics in the 1998 Professional/Scholarly Publishing Annual Awards Competition presented by the Association of American Publishers, Inc.

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.

Part I: Introduction 1. Introduction 2. Elementary Concepts in Numerical Analysis Part II: Basics from Numerical Analysis on Rn 3. Linear equations and Iterative Methods 4. Optimization 5. Nonlinear Equations 6. Approximation Methods 7. Numerical Integration and Differentiation 8. Monte Carlo and Simulation Methods 9. Quasi-Monte Carlo Methods Part III: Numerical Methods for Functional Problems 10. Finite-Difference Methods 11. Projection Methods for Functional Equations 12. Numerical Dynamic Programming Part IV: Perturbation Methods 13. Regular Perturbations of Simple Systems 14. Regular Perturbations in Multidimensional Systems 15. Advanced Asymptotic Methods Part V: Applications to Dynamic Equilibrium Analysis 16. Solution Methods for Perfect Foresight Models 17. Solving Rational Expectations Models References Index