Rodolphe Dos Santos Ferreira is a Professor Emeritus at the University of Strasbourg, France. His research includes oligopolistic competition in industrial organization, general equilibrium theory and macroeconomics.Thomas Seegmuller is a Research Professor at CNRS and a member of the Aix-Marseille School of Economics, at Aix Marseille University, France. His research includes macroeconomic dynamics, environmental macroeconomics and demographic economics.

• Introduction xiRodolphe DOS SANTOS FERREIRA and Thomas SEEGMULLERChapter 1. Household Heterogeneity in Macrodynamics 1Robert A. BECKER1.1. Introduction: saver–spender economies 11.2. Mankiw's savers–spenders model 21.3. The benchmark model: Ramsey's optimal growth model 41.4. A two-agent Ramsey model 121.5. The Ramsey equilibrium model 161.6. Stationary Ramsey equilibrium models 191.7. Ramsey equilibrium dynamics 231.8. Conclusion 361.9. References 36Chapter 2. Aggregation of the Production System: Aggregate and Multisectoral Models of Optimal Growth 41Kazuo NISHIMURA and Alain VENDITTI2.1. Introduction 412.2. Aggregation of the production system 432.3. The aggregate model of optimal growth 532.4. The two-sector model of optimal growth 592.5. Extension to an economy with n + 1 sectors 672.6. Conclusion 692.7. References 70Chapter 3. Business Cycle Fluctuations and Monetary Policy under Heterogeneous Information 73Romain BAERISWYL, Pierrick CLERC and Camille CORNAND3.1. Introduction 73Contents vii3.2. A beauty-contest model 753.3. Monetary non-neutrality 793.4. Business cycle fluctuations 883.5. Communication and stabilization policies 923.6. References 102Chapter 4. Dynamical Systems 107Stefano BOSI4.1. Introduction 1074.2. Discrete-time dynamical systems 1084.3. Matrix powers 1084.4. Systems of ordinary difference equations 1204.5. Local bifurcations 1294.6. Continuous-time systems 1444.7. Local bifurcations in dimension one 1464.8. Local bifurcations in higher dimensions 1474.9. References 154viii Macroeconomics 1Chapter 5. Adaptive Learning and the Restricted Perceptions Approach 157William A. BRANCH5.1. Introduction 1575.2. Model 1595.3. Rational expectations equilibrium and E-stability 1635.4. Restricted perceptions equilibrium 1685.5. Applications 1765.6. Literature review and conclusion 1875.7. References 188Chapter 6. Welfarist Social Justice and Distributional Analysis 191Nicolas GRAVEL6.1. Introduction 1916.2. Welfarist normative evaluation 1946.3. Ranking distributions of a single observable attribute 2246.4. Conclusion 2446.5. References 245Chapter 7. Political Economy of Macroeconomic Outcomes 249Gilles SAINT-PAUL7.1. Introduction 2497.2. The political economy of short-term fiscal and monetary policy 2517.3. Distributive conflict and long-term growth 2787.4. Institutions and reform 2827.5. Conclusion 2967.6. References 296List of Authors 301Index 303

Rodolphe Dos Santos Ferreira is a Professor Emeritus at the University of Strasbourg, France. His research includes oligopolistic competition in industrial organization, general equilibrium theory and macroeconomics.Thomas Seegmuller is a Research Professor at CNRS and a member of the Aix-Marseille School of Economics, at Aix Marseille University, France. His research includes macroeconomic dynamics, environmental macroeconomics and demographic economics.

• Introduction xiRodolphe DOS SANTOS FERREIRA and Thomas SEEGMULLERChapter 1. Household Heterogeneity in Macrodynamics 1Robert A. BECKER1.1. Introduction: saver–spender economies 11.2. Mankiw's savers–spenders model 21.3. The benchmark model: Ramsey's optimal growth model 41.4. A two-agent Ramsey model 121.5. The Ramsey equilibrium model 161.6. Stationary Ramsey equilibrium models 191.7. Ramsey equilibrium dynamics 231.8. Conclusion 361.9. References 36Chapter 2. Aggregation of the Production System: Aggregate and Multisectoral Models of Optimal Growth 41Kazuo NISHIMURA and Alain VENDITTI2.1. Introduction 412.2. Aggregation of the production system 432.3. The aggregate model of optimal growth 532.4. The two-sector model of optimal growth 592.5. Extension to an economy with n + 1 sectors 672.6. Conclusion 692.7. References 70Chapter 3. Business Cycle Fluctuations and Monetary Policy under Heterogeneous Information 73Romain BAERISWYL, Pierrick CLERC and Camille CORNAND3.1. Introduction 73Contents vii3.2. A beauty-contest model 753.3. Monetary non-neutrality 793.4. Business cycle fluctuations 883.5. Communication and stabilization policies 923.6. References 102Chapter 4. Dynamical Systems 107Stefano BOSI4.1. Introduction 1074.2. Discrete-time dynamical systems 1084.3. Matrix powers 1084.4. Systems of ordinary difference equations 1204.5. Local bifurcations 1294.6. Continuous-time systems 1444.7. Local bifurcations in dimension one 1464.8. Local bifurcations in higher dimensions 1474.9. References 154viii Macroeconomics 1Chapter 5. Adaptive Learning and the Restricted Perceptions Approach 157William A. BRANCH5.1. Introduction 1575.2. Model 1595.3. Rational expectations equilibrium and E-stability 1635.4. Restricted perceptions equilibrium 1685.5. Applications 1765.6. Literature review and conclusion 1875.7. References 188Chapter 6. Welfarist Social Justice and Distributional Analysis 191Nicolas GRAVEL6.1. Introduction 1916.2. Welfarist normative evaluation 1946.3. Ranking distributions of a single observable attribute 2246.4. Conclusion 2446.5. References 245Chapter 7. Political Economy of Macroeconomic Outcomes 249Gilles SAINT-PAUL7.1. Introduction 2497.2. The political economy of short-term fiscal and monetary policy 2517.3. Distributive conflict and long-term growth 2787.4. Institutions and reform 2827.5. Conclusion 2967.6. References 296List of Authors 301Index 303

Rodolphe Dos Santos Ferreira is a Professor Emeritus at the University of Strasbourg, France. His research includes oligopolistic competition in industrial organization, general equilibrium theory and macroeconomics.Thomas Seegmuller is a Research Professor at CNRS and a member of the Aix-Marseille School of Economics, at Aix Marseille University, France. His research includes macroeconomic dynamics, environmental macroeconomics and demographic economics.

• Introduction xiRodolphe DOS SANTOS FERREIRA and Thomas SEEGMULLERChapter 1. Household Heterogeneity in Macrodynamics 1Robert A. BECKER1.1. Introduction: saver–spender economies 11.2. Mankiw's savers–spenders model 21.3. The benchmark model: Ramsey's optimal growth model 41.4. A two-agent Ramsey model 121.5. The Ramsey equilibrium model 161.6. Stationary Ramsey equilibrium models 191.7. Ramsey equilibrium dynamics 231.8. Conclusion 361.9. References 36Chapter 2. Aggregation of the Production System: Aggregate and Multisectoral Models of Optimal Growth 41Kazuo NISHIMURA and Alain VENDITTI2.1. Introduction 412.2. Aggregation of the production system 432.3. The aggregate model of optimal growth 532.4. The two-sector model of optimal growth 592.5. Extension to an economy with n + 1 sectors 672.6. Conclusion 692.7. References 70Chapter 3. Business Cycle Fluctuations and Monetary Policy under Heterogeneous Information 73Romain BAERISWYL, Pierrick CLERC and Camille CORNAND3.1. Introduction 73Contents vii3.2. A beauty-contest model 753.3. Monetary non-neutrality 793.4. Business cycle fluctuations 883.5. Communication and stabilization policies 923.6. References 102Chapter 4. Dynamical Systems 107Stefano BOSI4.1. Introduction 1074.2. Discrete-time dynamical systems 1084.3. Matrix powers 1084.4. Systems of ordinary difference equations 1204.5. Local bifurcations 1294.6. Continuous-time systems 1444.7. Local bifurcations in dimension one 1464.8. Local bifurcations in higher dimensions 1474.9. References 154viii Macroeconomics 1Chapter 5. Adaptive Learning and the Restricted Perceptions Approach 157William A. BRANCH5.1. Introduction 1575.2. Model 1595.3. Rational expectations equilibrium and E-stability 1635.4. Restricted perceptions equilibrium 1685.5. Applications 1765.6. Literature review and conclusion 1875.7. References 188Chapter 6. Welfarist Social Justice and Distributional Analysis 191Nicolas GRAVEL6.1. Introduction 1916.2. Welfarist normative evaluation 1946.3. Ranking distributions of a single observable attribute 2246.4. Conclusion 2446.5. References 245Chapter 7. Political Economy of Macroeconomic Outcomes 249Gilles SAINT-PAUL7.1. Introduction 2497.2. The political economy of short-term fiscal and monetary policy 2517.3. Distributive conflict and long-term growth 2787.4. Institutions and reform 2827.5. Conclusion 2967.6. References 296List of Authors 301Index 303