Handout #4: Real Business Cycle Theory
ECON 302 Claremont Graduate University Fall 2014
Professor John Rutledge
TA Juan Carlos Arriaza
Business Cycle Theory try to explain the short run fluctuations of the economy from a
peak to trough. The fluctuation of
Handout #1: The Solow Growth Model, First Part.
ECON 302 Claremont Graduate University Fall 2014
Professor John Rutledge
TA Juan Carlos Arriaza
We will start with the Solow Growth Model in our first session
1. Production Function
() = (), (), ()
Where ()
Handout #A: IS LM model
ECON 302 Claremont Graduate University Fall 2014
Professor John Rutledge
TA Juan Carlos Arriaza
In this handout, we will analyze the IS LM model which is the equilibrium in the Goods
and Financial Markets and the impact of fiscal a
Solutions Homework No.2
ECON 302, Fall 2014
Professor John Rutledge
1. Real Business Cycle. Considered the two period times problem for
business cycle
= ( ) + ( ) +
( )
+
+
( )
+
s.t.
+
= +
+
+
Where represent leisure, c represents consumption, r is
Solutions Homework No.1
ECON 302, Fall 2014
Professor John Rutledge
1
Endogenous Growth Model. Assume a production function without = (Note that
the production function is a linear function of capital) with b >0. There is no population
growth (n = 0) and
Handout #3: The Solow Growth Model, Final Part.
ECON 302 Claremont Graduate University Fall 2014
Professor John Rutledge
TA Juan Carlos Arriaza
In the last session, we start studying a simplified model of knowledge accumulation without
capital.
In this se
Handout #2: The Solow Growth Model, Second Part.
ECON 302 Claremont Graduate University Fall 2014
Professor John Rutledge
TA Juan Carlos Arriaza
In this session, our outline will be
Static comparative: the impact of a change in the saving rate
The Impact
Handout #7: Nominal Rigidity, Final Part
ECON 302 Claremont Graduate University Fall 2014
Professor John Rutledge
TA Juan Carlos Arriaza
Lucas Island Model
It was built by Robert Lucas. He incorporate micro-foundations in the analysis of the
relationship
Handout #6: Nominal Rigidity, Second Part
ECON 302 Claremont Graduate University Fall 2014
Professor John Rutledge
TA Juan Carlos Arriaza
In this lecture, we start talking about Phillips curve and Augmented Phillips curve. Then,
we will talk about Lucas s
Handout #5: Nominal Rigidity, First Part
ECON 302 Claremont Graduate University Fall 2014
Professor John Rutledge
TA Juan Carlos Arriaza
In this session, we will start talking about Nominal Rigidity in the goods and labor market.
First, we will remember t
Last Edited: 9/3/14
CGU Division of Politics and Economics
CGU Economics Department
ECON 302 Macroeconomic Analysis I
Fall 2014
Course Instructor: Dr. John Rutledge
Office: TBA
Phone: 203 313 4000 (M)
E-mail: john.rutledge@cgu.edu or drjohnrutledge@mac.co