To harness the full power of computer technology, economists need to usea broad range of mathematical techniques. In this book, Kenneth Judd presentstechniques from the numerical analysis and applied mathematics literatures and showshow to use them in economic analyses.The book is divided into five parts. Part Iprovides a general introduction. Part II presents basics from numerical analysis onR DEGREESn, including linear equations, iterative methods, optimization, nonlinearequations, approximation methods, numerical integration and differentiation, andMonte Carlo methods. Part III covers methods for dynamic problems, including finitedifference methods, projection methods, and numerical dynamic programming. Part IVcovers perturbation and asymptotic solution methods. Finally, Part V coversapplications to dynamic equilibrium analysis, including solution methods for perfectforesight models and rational expectation models. A web site contains supplementarymaterial including programs and answers to exercises.