Macroeconomics ─ An Integrated Approach

This paperback edition is not available in the U.S. and Canada. Many undergraduatetexts treat macroeconomics as a set of distinct topics rather than as a unified body of theory andempirical findings. In contrast, this text by Alan Auerbach and Laurence Kotlikoff uses a singleanalytic framework--the two-period life-cycle model--to explore and connect each of the major issuesin contemporary macroeconomics. The model describes the evolution of the economy over time in termsof the behavior of overlapping generations of individuals, each of whom lives for two periods: youthand old age. This versatile framework can encompass most macroeconomic schools of thought throughthe alteration of key assumptions. The use of one basic model also allows the authors to exploreimportant topics not always addressed adequately in other texts; these include credit constraints,real business cycles, generational accounting, and international capital flows markets.Written in aclear, accessible style, this shortened and simplified second edition provides a systematic way tointerpret macroeconomic outcomes, to understand various policy proposals, and to appreciate howindividuals and firms fit into the big picture.Not for sale in U.S. and Canada