Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Answers Problem Set # 9 Problem 2 Consider a version of the environment studied by Stokey (1989) that was taught in class. Let (x, X, y) be the choice variables available to
Econ 387L: Macro II Spring 2006, University of Texas Instructor: Dean Corbae Problem Set #7- Question I Due 3/10/06, II Due 3/21/06 I. Consider the following version of the Lucas asset pricing model. Preferences are given by U (ct ) = ln(ct ). Each h
1
Labor Market Matching Models
The Hansen lotteries model is not a great framework to understand persistent equilibrium unemployment (the lottery is iid). The seminal work to understand equilibrium unemployment is Mortensen (1982) and Pissarides (
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Problem Set #4 Answers - Due 2/14/08 Using matlab, you are to obtain decision rules by the method of undetermined coefficients suggested in Christiano (2002) for the economy
Econ 387L: Macro II Spring 2006, University of Texas Instructor: Dean Corbae Problem Set #9- Part I Due 4/4/06, Part II Due 4/7/06 I. The first problem introduces you to dynamic programming in a finite T horizon stochastic growth model. Specifically,
Econ 387L: Macro II Spring 2006, University of Texas Instructor: Dean Corbae Problem Set #2- Due 1/31/06 You are to update the impulse response functions for real output and unemployment from Blanchard and Quah (1989). A decent treatment of VARs is i
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Problem Set #9 - Due 4/10/08
Consider a version of the environment studied by Stokey (1989) that was taught in class. Let (x, X, y) be the choice variables available to a r
Macro II: Answers to OG Practice Questions
February 20, 2008
Question 1 Consider an overlapping generations model in which agents live two periods. In period 1, they are endowed with e > 0 units of the single good. They have no endowment of leisure
Econ 387L: Macro II Spring 2004, University of Texas Instructor: Dean Corbae Answers - Final Exam Please answer each question on separate sheets. Remember to adjust the time you spend on each question in proportion to what they are worth. (1) 30 poin
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Problem Set #9 - Due 4/10/08
Consider a version of the environment studied by Stokey (1989) that was taught in class. Let (x, X, y) be the choice variables available to a r
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Answers Problem Set # 9 Problem 2 Consider a version of the environment studied by Stokey (1989) that was taught in class. Let (x, X, y) be the choice variables available to
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Problem Set #8- Due 4/3/08 This question comes from 5.1 (The One-Sector Model of Optimal Growth) of Stokey and Lucas (1989). In Chapter 2, Stokey and Lucas introduced the pr
Econ 387L: Macro II Spring 2006, University of Texas Instructor: Dean Corbae Problem Set #8- Due 3/28/06 I. This question explores the equivalence between time 0 Arrow-Debreu forward markets and Arrow's sequential representation in a nonstochastic ex
Econ 387L: Macro II Spring 2006, University of Texas Instructor: Dean Corbae Problem Set #8- Due 3/28/06 I. This question explores the equivalence between time 0 Arrow-Debreu forward markets and Arrow's sequential representation in a nonstochastic ex
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Answers Problem Set # 7 Part 1: (1) V1 (k1 , z1 ) = maxu (z1 f (k1 ) + (1 - ) k1 - k2 )
k2
Note that, since u0 > 0, k2 (s1 ) = 0. Thus, we have
V1 (k1 , z1 ) = u (z1 f (k
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Answers Problem Set #6 Consider the following version of the Lucas asset pricing model. Preferences are given by U (ct ) = ln(ct ). Each household is endowed with project th
Econ 387L: Macro II Spring 2006, University of Texas Instructor: Dean Corbae Problem Set #10 - Part I Due 4/11/06, Part II Due 4/14/06 I. A firm has a production technology yt = F (kt , kt+1 ) where F : R+ R+ R+ . Assume that F is continuously diff
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Problem Set #6- Due 3/20/08 Consider the following version of the Lucas asset pricing model. Preferences are given by U (ct ) = ln(ct ). Each household is endowed with proje
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Problem Set #10- Due 4/17/08 I. Consider an economy populated by a largen number of identical people who live from period 0 through T (where T is possibly infinite). In each
Econ 387L: MacroII Spring 2008, University of Texas at Austin Instructor : Dean Corbae
Problem Set 10 Solution
1. t Nt + qt Bt+1 + t Bt = Bt + Gt 2. The Household's problem is to solve:
T X t=0
(1)
max subject to
t u (ct , Nt )
(2)
ct + qt
Econ 387L: Macro II Spring 2006, University of Texas Instructor: Dean Corbae Problem Set #11- Due 4/18/06 I. Consider an economy populated by a largen number of identical people who live from period 0 through T (where T is possibly infinite). In each
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Problem Set #11- Due 4/24/08 1. We will consider a cash-in-advance environment to study "Unpleasant Monetarist Arithmetic". The technology is given by yt = nt where nt [0,
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Problem Set #3- Due 2/5/08 Using matlab, you are to obtain decision rules by the method of undetermined coefficients suggested in Christiano (2002) for the economy in Hansen
Solving Dynamic Equilibrium Models by a Method of Undetermined Coefficients
Macroeconomics II - Spring 2006 Department of Economics, University of Texas Instructor Dean Corbae Composed by Jeff Thurk1 1. INTRODUCTION You saw in class that one can solv
Solving Dynamic Equilibrium Models by a Method of Undetermined Coefficients
Macroeconomics II - Spring 2006 Department of Economics, University of Texas Instructor Dean Corbae Composed by Jeff Thurk1 1. INTRODUCTION You saw in class that one can solv
Economics 387L. Macroeconomics II. Spring 2008. Department of Economics, University of Texas Professor: Dean Corbae, Office: BRB 3.134A, Phone: 512-475-8530 Email: corbae@eco.utexas.edu, web: www.eco.utexas.edu/~corbae Office hours: Friday, 9-10:30am
Economics 387L. Macroeconomics II. Spring 2006. Department of Economics, University of Texas Professor: Dean Corbae, Office: BRB 3.134A, Phone: 512-475-8530 Email: corbae@eco.utexas.edu, web: www.eco.utexas.edu/~corbae Office hours: Thursday, 3:30-5p
Econ 387L: Macro II Spring 2008, University of Texas Instructor: Dean Corbae Problem Set #12- Due 5/1/08 1. Consider the following search model of money. Time is discrete and there is a continuum of agents with population normalized to 1. Any particu
Econ 387L: MacroII Spring 2008, University of Texas at Austin Instructor : Dean Corbae
Solutions to Problem Set #13, April 29, 2008 1. Consider the following search model of money. Time is discrete and there is a continuum of agents with population
Rational Expectations Equilibria in the OG Model with Production
Russell Cooper October 25, 2006
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Stochastic Money Transfers
Consider the overlapping generations model presented in class. The key aspects developed in other notes are: agents work