Macro 1 - Tepper School of Business
Lectures
- Lecture Notes [PDF]: Updated Thursday 12/6/2018 at 10:48 PM
- Lecture 1 (Slides: [PDF]):
- Started by discussing basic stylized facts in macro; developed the two sector G.E. model
- 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]
- Lecture 2:
- Further developed the two sector model. Proved first welfare theorem and discussed aggregation
- Lecture 3:
- Talked about aggregation and long-run behavior in the standard growth model. Started talking what causes lack of growth and fixed factors as well as population growth
- Lecture 4:
- Examined the long-run properties of the model in presence of population and productivity growth; started thinking about endogenous growth
- See the paper by Houthakker on how aggregation of a continuum of Leontief production functions can lead to Cobb-Douglass in the aggregate (With the heavy use of Pareto distributions)
- Lecture 5:
- Showed how endogenous growth can be generated by AK and AKH models and discussed their various properties
- Worked on the one-sector growth model in continuous time to see how to solve the model in continuous time
- Started thinking about increasing returns to scale
- Lecture 6:
- Worked out Romer (1986)'s model of growth with increasing returns and externalities
- Described how the equilibrium of an economy with monopolistic competition looked like
- Started describing Romer (1990)'s model of innovation and growth
- Lecture 7:
- Finished the discussion of Romer (1990)'s model of innovation and growth
- Started introducing government into our model
- Lecture 8:
- Talked about the Laffer curve and equivalent tax systems
- Discussed Diamond and Mirrlees (1971)'s result on production efficiency
- Started working on the primal approach to optimal taxation in a static economy
- Lecture 9:
- Finished discussion of the primal approach in the static problem and talked about how elasticities affect optimal taxes
- started working on the dynamic model
- Lecture 10:
- Finished discussion of optimal dynamic taxation
- Started on the model with uncertainty
- Lecture 11:
- Discussed further the model with uncertainty
- The very nice paper by Yaari on an alternative way to approach preferences under uncertainty: Link
- Lecture 12:
- Asset pricing and the Equity Premium Puzzle
Problem Sets
Problem Set 1 - [PDF] Due on 11/1/2018 - Solutions by Diana and Zahra - [PDF]
Problem Set 2 - [PDF] Due on 11/8/2018 - Solutions by Diana and Zahra - [PDF]
Problem Set 3 - [PDF] Due on 11/18/2018 - Solutions by Diana and Zahra - [PDF]
Problem Set 4 - [PDF] Due on 12/3/2018
Problem Set 5 - [PDF] Due on 12/12/2018
Last year's class page