One-Sector Growth Model Notes
1 The representative household's problem
The representative household enjoys consumption and leisure time in all periods t = 0, 1,., .
The household has no exogenous income, but it has fixed time endowments in each period, h
Econ 3102 - Competitive Equilibrium in the One-period
Macroeconomy
John Seliski
6/23/11
1
Competitive Equilibrium
Given scal policy G 0, a competitive equilibrium in this economy is a household allocation (C ; ` ; n ), a
rm allocation N , prots , lump-sum
Micro 3101 Homework 3 - solution Production function 1. (25 pt.) (a) APL = f (L; K) AL0:7 K 0:3 AK 0:3 = = L L L0:3
(The last simpli.cation is not required). Similarly, APK = (b) M PL M PK (c) T RS = (d) f ( L; K) = A( L)0:7 ( K)0:3 = AL0:7 K 0:3 = f (L;
Micro 3101
Homework Assignment 3 Due on Monday 04/06/2009
Production functions. 1. For the production function f (L, K) = AL0.7 K 0.3 , do the following: (a) Find the Average Product functions for labor and capital (APL , APK ). (b) Find the Marginal Prod
University of Minnesota
Econ 3102: Intermediate Macroeconomics
Practice Final
1
Denitions (10 points)
2
Short Answers (15 points)
3
Solow Growth Model (15 points)
1 =4
3=4
Consider the Solow growth model studied in Chapter 6, with technology given by Yt =
Econ 3102: Intermediate Macroeconomics
Homework #3 Answer Key
1
Problems (65 points)
Exercise 1 (30 points)
Consider a two-period economy where we have a representative consumer, a representative rm, and a government. The representative consumer derives u
University of Minnesota
Econ 3102: Intermediate Macroeconomics
Practice Midterm
1
Denitions (10 points)
2
Short Answers (20 points)
3
Consumer problem (10 points)
s
Consider a representative consumer whose preferences over consumption and leisure are give
Econ 3102: Intermediate Macroeconomics
Homework #1 Answer Key
1
Problems (65 points)
Exercise 1 (10 points)
First note that the utility function is undened when C = 0 or ` = 0, so we need only focus on the cases
in which C > 0 and ` > 0.
(a) Derive the ma
Econ 3102: Intermediate Macroeconomics
Homework #2 Answer Key
1
Problems (55 points)
Exercise 1 (20 points)
Consider a simple one-period, closed-economy model where the representative consumer has utility function
U (C; `) = C 1=2 `1=2 and has h available
Econ 3102: Intermediate Macroeconomics
Homework #4 Answer Key
1
Problems (55 points)
Exercise 1 (35 points)
Consider a innite horizon setup. The representative household (consumer) enjoys consumption and leisure
time in all periods t = 0, 1,. The househol
University of Minnesota
Department of Economics
Econ 3102: Intermediate Macroeconomics
Handout 6
1
The representative households problem
The representative household enjoys consumption and leisure time in all periods t = 0,
1,.,. The household has no exog
University of Minnesota Department of Economics Econ 3102: Intermediate Macroeconomics Handout 5
Just for completeness, this handout presents the denition of a competitive equilibrium (CE) for a two-period economy, and characterizes its solution. To ease
Micro 3101 Solution to Homework Assignment 4
Monopoly 1. (a) To find the Marginal Revenue, we first have to "invert" the demand function to the inverse demand function as P = 100 - Q. The total revenue is then T R (Q) = P Q = 100Q - Q2 . Differentiating T
Micro 3101 Homework Assignment 4 Due on Monday 04/20/2009
Monopoly 1. Suppose that there is a single producer in the market, with the following total cost function Q2 T C(Q) = + 10Q + 20 2 The demand for the market is given by Q = 100 - p (a) Calculate th
Calculus refresher
Disclaimer: I claim no original content on this document, which is mostly a summary-rewrite of what any standard college calculus book offers. (Here I've used Calculus by Dennis Zill.) I consider this as a brief refresher of the bare-bo
University of Minnesota
Department of Economics
Econ 3102: Intermediate Macroeconomics
Problem Set 1 Answer Key
1
Problems (65 points)
Exercise 1 (10 points)
Consider the utility function U (C, ) = logC + (1 )log .
(a) Derive the marginal utility of consu
Econ 3102 - Competitive Equilibrium Notes
John Seliski
6/19/11
1
The Economic Agents in our Economy
1.1
Consumers
Suppose that there exists a representative consumer in this economy whose preferences over consumption
(C ) and leisure (`) are represented b
Notes on Constructing Capital Series
National accounts generally do not report a series for the capital stock, so the capital stock must be
constructed using the perpetual inventory method:
Kt+1 = Kt (1 ) + It
where is a constant depreciation rate of capi
Growth Accounting Framework The growth accounting framework used in this course is based on the aggregate production function taking the Cobb-Douglas form: Yt = At K t L1 , t where Yt is output, At is total factor productivity (TFP), K t is capital input,
Calculus refresher
Disclaimer: I claim no original content on this document, which is mostly a summary-rewrite of what any
standard college calculus book offers. (Here Ive used Calculus by Dennis Zill.) I consider this as a brief
refresher of the bare-bon