Unformatted text preview: Preface to the first edition The conception of this book began in the autumn semester of 1990 when I under- took a course in Advanced Economic Theory for undergraduates at the University of Stirling. In this course we attempted to introduce students to dynamics and some of the more recent advances in economic theory. In looking at this material it was quite clear that phase diagrams, and what mathematicians would call qualita- tive differential equations, were becoming widespread in the economics literature. There is little doubt that in large part this was a result of the rational expectations revolution going on in economics. With a more explicit introduction of expec- tations into economic modelling, adjustment processes became the mainstay of many economic models. As such, there was a movement away from models just depicting comparative statics. The result was a more explicit statement of a model’s dynamics, along with its comparative statics. A model’s dynamics were explicitlydynamics, along with its comparative statics....
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- Fall '11