Economics 640: Macroeconomics
Fall 2014
Professor Shiamptanis
Assignment 1
(100 points: Due September 25)
1. (20 points) Consider the following application of the Solow model. Total output (measured in measured in billions of year-2005 dollars) is given b
Economics 640: Macroeconomics
Professor Shiamptanis
Past Examination 2
Answer Key
1. (a) The consumer solves
max ln cy + ln co
t
t+1
y o
ct ;ct+1
subject to
cy +
t
co
t+1
= wt :
1 + rt+1
FOC give
st =
1+
(1)
wt
The rm production function is f (kt ) = zkt
Economics 640: Macroeconomics
Fall 2014
Professor Shiamptanis
Assignment 2
(100 points: Due October 30)
1. (15 points) Suppose that a consumer can earn a higher wage rate for working overtime.
That is, for the rst q hours that the consumer works, he recei
Economics 640: Macroeconomics
Fall 2013
Professor Shiamptanis
Past Midterm Examination
1. Consider an overlapping generations model where everyone lives for two periods, and
the population evolves according to Nt = (1 + n) Nt 1 where n is the population g
Topic 2
Solow Growth Model
September 2014
Wilfrid Laurier University (Shiamptanis) ()
EC640: Solow Growth Model
September 2014
1 / 30
Motivation
Between 1960 and 2000, the income per capita was growing at an
average rate of 2.31% in Canada, 2.48% in the U
Topic 6
Overlapping Generations Model
Wilfrid Laurier University (C Shiamptanis) ()
October 2014
EC640: Macroeconomics
October 2014
1 / 28
Ricardian Equivalence Proposition does not always holds
A key feature of the Overlapping generations model is that
m