Macro 1 Tepper School of Business

Macro 1 - Tepper School of Business

Lectures

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

Problem Sets
Problem Set 1 - [PDF] Due on 11/1/2018
Problem Set 2 - [PDF] Due on 11/8/2018
Problem Set 3 - [PDF] Due on 11/18/2018

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