The Art of Smooth Pasting (Hardback)A. Dixit (author)
- We can order this
The main mathematical ideas are presented in a context which with which economists will be familiar. Using a binomial approach to Brownian motion, the mathematics is reduced to simple algebra, progressing to some equally simple limits. The starting point of the calculus of Brownian motion - 'Ito's Lemma' - emerges by analogy with the economics of risk-aversion. Conditions for the optimal regulation of Brownian motion, including the important, but often mysterious, 'smooth pasting' condition, are derived in a similar way. Each theoretical derivation is illustrated by developing a significant economic application, drawn mainly from recent research in macroeconomics and international economics.
Publisher: Taylor & Francis Ltd
Number of pages: 88
Weight: 227 g
Dimensions: 216 x 140 x 12 mm
You may also be interested in...
Would you like to proceed to the App store to download the Waterstones App?