Review by Choice Review
Most of modern macroeconomics consists of calibrating dynamic general equilibrium (DGE) models and comparing their results with the relevant data. This book does exactly that for almost every macroeconomic topic imaginable. In 200 pages of tautly and clearly written prose, along with dozens of tables and graphs, Homburg (Leibniz Univ., Germany) provides a concise treatise on modern macroeconomics that would work well as a text for advanced undergraduates or first-year graduate students in economics. What sets this book apart from similar texts (e.g., M. Wickens, Macroeconomic Theory: A Dynamic General Equilibrium Approach, Princeton, 2012) is Homburg's treatment of expectations. Perfect foresight and rational expectations are the customary assumptions in the literature, but here the author applies adaptive expectations to all of the consumers and firms in DGE models. The result is a text that looks like a classic, middle-of-the-road book but that embodies a more nuanced approach to the subject. An especially nice feature is that the computer code for the basic model is included in an appendix so that instructors and students may modify the code as they work through the material. Summing Up: Essential. Upper-division undergraduates through professionals. --Louis D. Johnston, College of St. Benedict/St. John's University
Copyright American Library Association, used with permission.
Review by Choice Review
