Econ 721 - Macro II - Spring 2009
Prof. Oksana Leukhina
T.A. Fernando Chague
Homework 1 - Solutions
1. Consider the following "Edgeworth-box" economy with two commodities (say apples
and bananas). The
Econ 721 - Macro II - Spring 2009
Prof. Oksana Leukhina
T.A. Fernando Chague
Recitation 10: Uncertainty II
1. Consider a simple one-tree pure exchange economy. The only source of consumption is
the fr
Professor: Oksana Leukhina
University of NC - Chapel Hill
Econ 720 - Macro Theory
Final Exam Answers
(120 pts)
Closed books/closed notes exam. You may use your calculator. Show all your work!
Question
ECON 721
Macroeconomic Theory
Professor: Oksana Leukhina
Department of Economics
UNC
Spring 2009
Advanced Macroeconomic Theory II
Lecture:
Professor:
Office hrs:
Recitation:
GA:
Class Website:
Tuesday
Econ 721 - Macro II - Spring 2009
Prof. Oksana Leukhina
T.A. Fernando Chague
Recitation 12: Overlapping Generations Models - SOLUTION
1. Consider an overlapping generations endowment economy with a si
Econ 721 - Macro II - Spring 2009
Prof. Oksana Leukhina
T.A. Fernando Chague
Recitation 11: Simple Model with Uncertainty
1. Consider an economy that lasts for only one period. There are two consumers
Econ 721 - Macro II - Spring 2009
Prof. Oksana Leukhina
T.A. Fernando Chague
Recitation 9: Uncertainty
1. An economy consists of two innitely lived consumers named i = 1; 2. There is one
nonstorable c
Econ 721 - Macro II - Spring 2009
Prof. Oksana Leukhina
T.A. Fernando Chague
Recitation 8: Ricardian Equivalence
1. Consider the following generation of agents. Each generation t lives for one period,
Econ 721 - Macro II - Spring 2009
Prof. Oksana Leukhina
T.A. Fernando Chague
Recitation 7: NGM and Welfare Analysis
1. Consider the NGM model with taxes on consumption and capital income. Assume
Nt =
Econ 721 - Macro II - Spring 2009
Prof. Oksana Leukhina
T.A. Fernando Chague
Recitation 6: Matlab and NGM
1. Consider the Neoclassical Growth Model. The consumer problem is:
max
1
X
t
[ln (ct ) + ln (
Econ 721 - Macro II - Spring 2009
Prof. Oksana Leukhina
T.A. Fernando Chague
Recitation 6: Matlab and NGM
1. Consider the Neoclassical Growth Model. The consumer problem is:
max
1
X
t
[ln (ct ) + ln (
Econ 721 - Macro II - Spring 2009
Prof. Oksana Leukhina
T.A. Fernando Chague
Recitation 5: Cake Problem
1. Consider a cake-eating problem. Suppose you are presented with a cake of size W0 .
At each po
Professor: Oksana Leukhina
RA: Fernando Chague
University of NC - Chapel Hill
Econ 721 - Macro Theory
Your Name .
ANSWERS to MIDTERM 2
This is a closed notes/books exam. Good luck.
Question 1 (35 poin
Instructor: Oksana Leukhina
University of NC - Chapel Hill
Advanced Macro Theory II
MIDTERM1
Solution
Question 1 (30 points)
a. (5) State the functional equation (FE) formulation of the simple neoclas