ECON 5010 Solutions to Problem Set #5
Consider the baseline Dynamic New Keynesian (DNK) model from Clarida, Gali and Gertler (2000):
t
=
Et
t+1
xt
= Et xt+1
rt
=
Et
t+1
+ xt
(1= )(rt
Et
t+1 )
+ gt
+ xt ;
where Et represents rational expectations based on
ECON 5010 Solutions to Problem Set #4
1. Ramsey growth model.
Calculate and graph the numerical saddle path for log utility and a Cobb-
Douglas production function. Use the following parameter values: discount rate ( = 0:05), capital
share parameter ( = 0
ECON 5010 Solutions to Problem Set #3
Empirical Macroeconomics. Go to the Federal Reserve Economic Database (FRED) and download data
on the prime bank loan rate (rt ) and total establishment nonfarm employees (ht ) over the period 1960
through 2010.
Trans
ECON 5010 Solutions to Problem Set #2
1. Consider the production function Y = AK + BL, where A and B are positive constants. Also assume
constant population growth at rate n and constant depreciation at rate . [Barro and Sala-i-Martin,
2004]
(a) Write out
ECON 5010 Solutions to Problem Set #1
1. Romer, 4th Edition, Exercise 1.1.
Solution.
(a)
_
_
_
Z (t)
d ln Z (t)
d ln[X (t)Y (t)]
d ln[X (t) + ln Y (t)]
d ln X (t) d ln Y (t)
X (t) Y (t)
=
=
=
=
+
=
+
:
Z (t)
dt
dt
dt
dt
dt
X (t) Y (t)
(b)
_
d ln Z (t)
d l
ECON 5010 Midterm Exam Fall 2011
1. (20 pts) Solow growth model. Write down all the relevant equations and variable denitions for the
textbook Solow growth model. Using a Cobb-Douglas production function, solve for the steady-state
levels of capital, outp
ECON 5010 Solutions to the Midterm Exam Fall 2011
1. (20 pts) Solow growth model. Write down all the relevant equations and variable denitions for the
textbook Solow growth model. Using a Cobb-Douglas production function, solve for the steady-state
levels
Solutions to the Final Exam
ECON 5010 Fall 2011
1. Ramsey Growth Model. (50 pts) Consider a Ramsey economy where agents have log utility and technology grows at
rate g . The following system of dierential equations describe the dynamics of this Ramsey eco
Solutions to the Final Exam
ECON 5010 Fall 2011
1. Ramsey Growth Model. (50 pts) Consider a Ramsey economy where agents have log utility and technology grows at
rate g . The following system of dierential equations describe the dynamics of this Ramsey eco