<p><br/></p><p>This book views many apparently disparate dynamic economic models as examples<br/>of a single class of models that can be adapted and specialized to study<br/>diverse economic phenomena. The class of models was created by using recent<br/>advances in (i) the theory of recursive dynamic competitive economies;1 (ii)<br/>methods for estimating and interpreting vector autoregression;2 (iii) linear optimal<br/>control theory;3 and (iv) computer languages for rapidly manipulating<br/>linear optimal control systems.4 We combine these elements to build a class of<br/>models for which the competitive equilibria are vector autoregressions that can<br/>be swiftly computed, represented, and simulated using the methods of linear<br/>optimal control theory. We use the computer language MATLAB to implement<br/>the computations. This language has a powerful vocabulary and a convenient<br/>structure that liberate time and energy from programming, and thereby spur<br/>creative application of linear control theory.</p>