Class Notes - [PDF] - updated: 12/10, 1:53PM
Lecture 1: Slides - [PDF]
Lecture 1: Slides - [PDF]
- We went over basic observations that we are interested in macro and tried to develop a two-sector model that speaks to it.
- If you want to read more on growth facts and observations, this is a very nice paper by Chad Jones and Paul Romer - The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital - [PDF]
- We further developed and simplified the two-sector model. Talked about aggregation, how to solve it and started thinking about its implications.
- New paper by Per Krusell and Timo Boppart on the decline of hours worked: Labor supply in the past, present, and future: a balanced-growth perspective - [PDF]
- Discussed various implications of the one-sector growth model. Started thinking about endogenous growth models.
- Discussed various version of the AK and AKH model as well as a special case of Romer's growth with externality paper and their implications
- Worked on a continuous time version of the one-sector growth model
- Started thinking about growth through productivity improvements or innovations.
- Discussed the basic version of Romer (1990)'s endogenous growth model via product innovation
- Started thinking about government policy and optimal policy problems
- Further discussed Uniform Commodity Taxation
- Extended our analysis of optimal taxation to dynamic models and showed the famous or infamous(!) Chamley-Judd result of zero capital taxation.
- Started introducing risk and randomness to our model.
- Discussed stationarity and long-run dynamics in stochastic models.
- Started discussing asset pricing
- Discussed The Equity Premium Puzzle and some of its resolutions
- Started the discussion of unemployment by looking at the McCall search model and the DMP model
- Discussed Rothschild and Diamond Paradox
- Solved the Burdett-Judd model
- Discussed Nash bargainging and the DMP model
- Finished the exposition of the DMP model
Problem Sets
Problem Set 1 - [PDF] Due on 11/3/2016 - Solution by Hakki [PDF]
Problem Set 2 - [PDF] Due on 11/15/2016 - Solution by Hakki [PDF]
Problem Set 3 - [PDF] Due on 11/23/2016 - Solution by Hakki [PDF]
Problem Set 4 - [PDF] Due on 12/7/2016 - Solution by Ali [PDF]
SL parts [PDF]
Problem Set 5 - [PDF] Due on 12/15/2016 - Solution by Ali and Hakki [PDF] SL parts [PDF]
Exams
Midterm - [PDF]; Solution - [PDF]
Final - [PDF]; Solution - [PDF]
Problem Set 1 - [PDF] Due on 11/3/2016 - Solution by Hakki [PDF]
Problem Set 2 - [PDF] Due on 11/15/2016 - Solution by Hakki [PDF]
Problem Set 3 - [PDF] Due on 11/23/2016 - Solution by Hakki [PDF]
Problem Set 4 - [PDF] Due on 12/7/2016 - Solution by Ali [PDF]
SL parts [PDF]
Problem Set 5 - [PDF] Due on 12/15/2016 - Solution by Ali and Hakki [PDF] SL parts [PDF]
Exams
Midterm - [PDF]; Solution - [PDF]
Final - [PDF]; Solution - [PDF]