Solutions Manual for

This solutions manual is a valuable companion volume to the classic textbook by Nancy L. Stokey, Robert E. Lucas, Jr., and Edward C. Prescott. The exercises in the Stokey et al. book are integral to the text, and thus, a reader cannot fully appreciate the text without understanding the results developed in the exercises. This manual provides detailed answers to the central exercises in . The authors’ selection of exercises is designed to maximize the reader’s understanding of . Solutions are presented to every question in the core chapters on recursive methods, as well as most questions from the chapters on mathematical background. Some questions from the chapters on applications of these techniques to economic models have been reserved so as to provide instructors with a crucial “test bank” of questions. Efficient and lucid in approach, this manual will greatly enhance the value of as a text for self-study.