## Macro 1 - Tepper School of Business

Class Notes - [__PDF__] - updated: 12/10, 1:53PM

Lecture 1: Slides - [__PDF__]__PDF__]

Lecture 1: Slides - [

- 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 - [

Problem Set 2 - [

Problem Set 3 - [

Problem Set 4 - [

SL parts [

Problem Set 5 - [

**Exams**

Midterm - [

Final - [