May 10, 2015
Problem Set 3
Econ 504 - Macroeconomic Theory II - Spring, 2013
Problem Set 3: Recursive Competitive Equilibrium
under Uncertainty
1. Consider the economy with shock to production. People are allowed to purchase statecontingent asset for next

Ebru Voyvoda
METU Department of Economics
Econ 502- Macroeconomic Theory
Fall 2016-17
Assignment 2.1
Due 25 Nov. 2016, 9:00 a.m
1. Remember how we defined the macro-relationships for a one sector model under Mark-Up Pricing
and Neo-classical model:
[MU]
[

ECON502
Assignment 1 Solutions
T.A: Burcu OZGUN
Notes on Assignment 1: Keep in mind that there are numerous ways to solve some of these
exercises. This sheet provides only one of these possible approaches to give you an idea about the
correct answers. As

Ebru Voyvoda
METU Department of Economics
Econ 502- Macroeconomic Theory
Fall 2016-17
Assignment 1
Due 2Nov. 2016
1. Consider the following cost minimization problem:
min WL + rPK
st. F(K,L) = X
Let F(K,N) be a constant returns to scale production functio

Ebru Voyvoda
METU Department of Economics
Econ 502- Macroeconomic Theory
Fall 2016-17
Assignment 2.0
Due 16 Nov. 2016, 9:00 a.m
1. Consider the standard two-period Diamond overlapping-generations model, where individuals are
alive for only two periods. Th

ECON502
Assignment 2.0 Solutions
T.A: Burcu OZGUN
Notes on Assignment 2: Notation may differ. It doesnt matter how you treat the technology
parameter A. Assumptions about depreciation and population growth rate also do not matter.
As long as you are consi

Eco504
Fall 2010
C. Sims
CAPITAL TAXES
1. R EVIEW :
SMALL TAXES
SMALL DEADWEIGHT LOSS
Static analysis suggests that deadweight loss from taxation at rate is 0( 2 )
that is, that for small tax rates the ratio of deadweight loss to revenue is
arbitrarily

Eco504
Spring 2009
C. Sims
The General Linear RE Model
February 11, 2009
c 2009 by Christopher A. Sims. This document may be reproduced for educational and research purposes,
so long as the copies contain this notice and are retained for personal use or d

Eco504
Spring 2010
C. Sims
RATIONAL INATTENTION EXERCISE
A price-setter has a loss function E[( P C )2 ] I where C is input cost, P is price,
and I is mutual information between the price-setters observations X (which he
can use to set P as P( X ) and C.

Eco504
Spring 2010
C. Sims
MID-TERM EXAM
(1) (45 minutes) Consider a model in which a representative agent has the objective function
1
C
max t
1
C,K,B t=0
t
(1)
and faces the constraints at each period t = 0, . . . ,
Ct + Kt +
B
Bt
= At Kt1 + Rt1 t1 t

Eco504
Spring 2010
C. Sims
EXERCISE AND READINGS FROM 4/29 LECTURE
The exercise, due Tuesday 5/4:
Consider the simplest neoclassical optimal growth model, written as a deterministic continuous time problem:
[
]
C 1
t
max E
e t dt
subject to
(1)
C,K
0 1

University of Toronto
Department of Economics
Macro Theory I (Second Part)
ECO 2021H,F 2000
Diego Restuccia
Homework 1: Due date Tuesday Nov. 14
Each problem is worth 25 points.
1. Exercise 2.2, Stokey, Lucas, and Prescott (SLP), page 12.
2. Exercise 2.6,

Econ 504 - Macroeconomic Theory II - Spring, 2015
April 19, 2015
Problem Set 3
Problem Set 3: Recursive Competitive Equilibrium
under Uncertainty
1. Government with useless consumption
Consider the following problem with a government which taxes the agent

Department of Economics
University of Toronto
Macro Theory I (Part II) ECO2021F
Diego Restuccia - Fall 2000
Final Exam
Make all extra assumptions that you consider necessary, but make sure to state them clearly.
1. (30 points) Consider an economy with mea

Econ 504 - Macroeconomic Theory II - Spring, 2015
March 26, 2015
Problem Set 2
Problem Set 2: Recursive Competitive Equilibrium
1. RCE of the Growth Model and FBWT
We have written the growth model in recursive language during lectures and claimed
that wit

Advanced Macroeconomics I
Lecture 2 (2)
Zhe Li
SUFE
Spring 2011
(SUFE)
Advanced Macro
Spring 2011
1 / 14
Sequential Method - Innite horizon
Why should macroeconomists study the case of an innite time
horizon?
Altruism: care about their children
Let u (ct

ECON502
Assignment 2.1 Solutions
T.A: Burcu OZGUN
Notes on Assignment 2.1: Here, I tried to provide you with a tentative set of solutions
before the mid term examination. I will put a more detailed version which includes total
points for each step when I