{"product_id":"art-of-smooth-pasting-1","title":"Art of Smooth Pasting","description":"This book aims to widen the understanding of stochastic dynamic choice and equilibrium models. It offers a simplified and heuristic exposition of the theory of Brownian motion and its control or regulation, rendering such methods more accessible to economists who do not require a detailed, mathematical treatment of the subject.\nThe 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.","brand":"Harwood-Academic Publishers","offers":[{"title":"Default Title","offer_id":54249170141528,"sku":"9783718653843","price":107.99,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0278\/1295\/4195\/files\/9783718653843_fcc19372-48cb-4889-a5e3-7a27966bb5b3.jpg?v=1779343218","url":"https:\/\/agendabookshop.com\/products\/art-of-smooth-pasting-1","provider":"Agenda Bookshop","version":"1.0","type":"link"}