1
Absolute and Conditional Convergence
1. Explain whether the neoclassical growth model predicts absolute convergence or
conditional convergence. What is the difference between the two?
2. Suppose that the population growth rate, n, can vary as an economy
Endogenous Technological Progress
(Varieties Model)
[ Ch. 6 B/S book ]
Ec1430 Harvard University 2014
Producers of final output
Model based on Paul Romer (1987, 1990). Competitive
producers of final product have free access to production
function of Spen
Convergence and
Modernization
Ec1430 Harvard University
Fall 2014
Iron Law convergence rate of 2% per
year in prior empirical work. 35 years to
close half of gap, 115 years for 90%.
Implies poor tend to catch up to rich but
not rapidly.
Absolute (uncondit
Time Remaining
Time Remaining
Time Remaining
JAGANNATH UNIVERSITY
Department of Finance
Bachelor Of Business Administration
Welcome
To
Our Presentation
Presented By:
Epimetheus-I
Serial No:
Name of the members of the group
Roll Number
Designation
01
Sulta
GDP
The term GDP means Gross Domestic Product. GDP is arguably the most important of all
economic statistics as it attempts to capture the state of the economy in one number.
GDP is the monetary value of all the finished goods and services produced within
The global price hike
When the cost of something becomes far more expensive than its original price is known as
price hike.
The world has just experienced the recession and the affected countries are trying to recover
it but the recent global price hike i
The regulation of the money supply and interest rates by a central bank, such as the Central
Bank of Bangladesh in order to control inflation and stabilize currency. Monetary policy is
one the two ways the government can impact the economy. By impacting t
Report of FIN-5101:
Modern Finance Theory
Term Paper On
Portfolio Construction using Microsoft Excel
Submitted To
Kawsar Ahmed Shiblu
Lecturer
Department of Finance
Faculty of Business Studies
Jagannath University, Dhaka
Submitted By
Sultan Ahmed Khan
Rep
Assignment of Fin-2104:
Business Statistics-II
Term Paper on
The influence of different variables on profit of a company
Submitted to
Saud Ahmed
Course Instructor/ Lecturer,
Department of Finance,
Faculty of Business Studies
Jagannath University, Dhaka
Su
The ICC Cricket World Cup is the premier international championship of men's One Day
International (ODI) cricket. The event is organized by the sport's governing body, the
International Cricket Council (ICC), with preliminary qualification rounds leading
Price Hike in Power
Form the birth of our country we are facing a great deal of problem related to electricity and
gas. In this civilized era no one can keep pace to the world without enough supply of
electricity and gas. Without the enough supply of powe
Assignment of Fin-2209:
Macroeconomics
A case study of Bangladesh- Inflation, Unemployment, Growth Trend
A Report On
Submitted to
Saud Ahmed
Course Instructor/ Lecturer,
Department of Finance,
Faculty of Business Studies
Jagannath University, Dhaka
Submit
Rare Macroeconomic
Disasters
Side effect of macroeconomic & financial
crises of 20072011 is that economists
became more receptive to models of asset
pricing and macro dynamics based on rare
macro disasters.
Explanatory power for array of assetpricing puzz
Tax Smoothing and Strategic
Debt
Two-period model. Outputs Y1, Y2;
consumptions C1, C2; government
purchases G1, G2; taxes T1, T2.
Use simple way to introduce tax
distortions (e.g.
tax on labor income). Suppose that loss
of
output depends on square of tax
Ec1430 Section 2: Solow-Swan Model with Human Capital
September 18, 2014
Two basic approaches to modeling human capital: Lucas 1988 / Mankiw-Romer-Weil 1992, and Nelson
Phelps 1966. The rst category describes growth as a function of human capital change,
Section 4: Endogenous Growth Model
October 3, 2014
1
More about Ramsey Model
1.1 Recap
dct =
dt
ct
f
kt x
dkt = f kt ct ( + n + x) kt
dt
1.2 Transition Dynamics
To draw the phase diagram in
(c, k)
space, we rst determine the two loci for
dc
dt
dk
dt
dc
Introduction: Growth Facts
Ec 1430
U.S. Growth in the Long Run
U.S. GDP per capita in 2000$:
in 1869, 2366$
in 2011, 37000$
Over 142 years (1869-2011):
U.S. per capita GDP rose by factor of 15.6
average growth rate of 1.94% per year
U.S. Growth in the Lon
Ec1430 Section 3: Ramsey Model
September 26, 2014
In the Ramsey model, we endogenize the saving rate by including household intertemporal utility maximization. This gives a richer structure of the transition dynamics to the steady state and a more complet
Solow Growth Model
(Ch. 1 B/S book)
Ec 1430 Harvard University 2014
Basic Structure
Neoclassical production function:
Y F K , L, A
A: non-rival, non-excludible technology. One-sector
technology: Y goes for C or K (gross investment).
K, capital, is cumul
1
Land in the Ramsey Model
Suppose that production involves labor L, capital K, and land , in the form of a constantreturn CES production function:
Y = A [ a ( K L 1 )
1
+ (1 a )
1
]
1
,
where A > 0, a > 0, 0 < a < 1, and > 0. Technological progress is a
Public debt, Finite Horizons in NGM
Ec1430 Robert Barro Harvard University 2014
Budget Constraints
Government bonds, B, infinitesimal maturity, pay real
interest rate r. Government b.c. is
rB G T dB dt .
T is lump-sum taxes. Household assets per person
(w
Economics 1430
Midterm Examination
Spring 2014
I. True/False/Uncertain. Explain briefly why each statement is true, false, or uncertain.
Explanation determines grade. (8 minutes each.)
1. The Solow growth model does well in matching empirically observed c
Neoclassical Growth Model
(Ramsey-Cass-Koopmans model)
[ Ch. 2 B/S book ]
Harvard University 2014
Households
Competitive households, firms. Labor supply as in Solow,
L t L 0 e , set L 0 1 . Define c t C t L t .
nt
Representative household seeks to maxim
Ec1430 Section 1: Conditional Convergence
September 12, 2014
1
Empirical Analysis
In lecture, we have shown the absolute convergence fails badly in terms of the cross-country data. In a
simple regression, the relation between growth rate and per-capita is
Environmental Protection,
Rare Disasters, and Discount
Rates
Robert J. Barro
Low Discount Rates?
Discount rates play central role in Stern
Review and related literature. Spending
money now to reduce environmental
pollution modeled as generating benefits
i
[Pick th
Case Study of Fin-2210:
Management Information System
Case Study on
El-Alamein for printing & packaging goes digital
Submitted to
Md. Monzur Morshed Bhuiya
Associate Professor,
Department of Finance,
Faculty of Business Studies,
Jagannath Univers