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This book presents a variety of computational methods used to solve dynamic problems in economics and finance. It emphasizes practical numerical methods rather than mathematical proofs and focuses on techniques that apply directly to economic analyses. The examples are drawn from a wide range of subspecialties of economics and finance, with particular emphasis on problems in agricultural and resource economics, macroeconomics, and finance. The book also provides an extensive Web-site library of computer utilities and demonstration programs.The book is divided into two parts. The first part develops basic numerical methods, including linear and nonlinear equation methods, complementarity methods, finite-dimensional optimization, numerical integration and differentiation, and function approximation. The second part presents methods for solving dynamic stochastic models in economics and finance, including dynamic programming, rational expectations, and arbitrage pricing models in discrete and continuous time. The book uses MATLAB to illustrate the algorithms and includes a utilities toolbox to help readers develop their own computational economics applications.

Computer worm - A computer worm is a self-replicating computer program, similar to a computer virus. A virus attaches itself to, and becomes part of, another executable program; however, a worm is self-contained and does not need to be part of another program to propagate itself.

Computer software - Computer software (or simply software) is that part of a computer system that consists of encoded information (or computer instructions), as opposed to the physical computer equipment (hardware) which is used to store and process this information. The term is roughly synonymous with computer program but is more generic in scope.

Computer simulation - A computer simulation or a computer model is a computer program that attempts to simulate an abstract model of a particular system. Computer simulations have become a useful part of modeling many natural systems in physics, chemistry and biology, human systems in economics and social science and in the process of engineering new technology, to gain insight into the operation of those systems.

Computer-generated - The term computer-generated most often refers to a sound or visual that has been created in whole or in part with the aid of computer software. It can, but does not customarily, refer to something produced solely by computer hardware, like a noise from a hard disk drive or a printed page from a printer (although the object printed on the paper may be computer-generated, the physical page itself is not).

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