Econ 502
Franois Gourio
Midterm - Spring 2011
Intructions: Budget your time carefully. The exam is 1h20mn and there are 80pts: 1pt = 1mn.
Any attempt to cheat will be severely punished I will give a failing grade for the course and report
the cheater to t
Econ 502, Spring 2012
Franois Gourio
Homework 1
ANSWER KEY
Problem 1: A technology shift in the Solow model
Consider the discrete-time Solow model:
kt+1 =
sf (kt ) + (1
)kt
;
(1 + n) (1 + g )
k0 given, with kt = Kt =(At Lt ):
p
(1) Suppose that f (k ) = A
EC 502, Spring 2012
Midterm sample
Short questions (answer in 5 lines no proof required but a graph or a couple of
equations may be useful)
(1) Explain how a rational consumer adjusts his consumption and savings after winning the lottery.
(State whatever
Econ 502
Franois Gourio
Midterm - Spring 2011
Intructions: Budget your time carefully. The exam is 1h20mn and there are 80pts: 1pt = 1mn.
Any attempt to cheat will be severely punished I will give a failing grade for the course and report
the cheater to t
Econ 502, Spring 2012
Franois Gourio
Homework 5 Answer Key
Instructor: Francois Gourio
Problem 1: Investment
Consider a rm that chooses capital to maximize the expected present discounted value of prots:
!
1
s
X
1
Vt = Et
( t+s ; Kt+s ) PtK s It+s C (It+s
Econ 502, Spring 2012
Francois Gourio
Homework 4
Due Thursday, March 3rd in the TF session, or Thursday March 2nd in class
Consumption Smoothing: Empirical Tests
Like Homework 2, this problem requires you to analyze real data using econometric tools. Agai
Econ 502, Spring 2012
Francois Gourio
Homework 1
Due Friday, Feb 3rd in the TF session, or Thursday Feb 2nd in class
Problem 1: A shift in the production function in the Solow model
Consider the discrete-time Solow model:
kt+1 =
sf (kt ) + (1
)kt
;
(1 + n
CAS EC 502 A1: Macroeconomics
Spring 2012
Instructor
Francois Gourio, assistant professor of economics.
O ce: room 400, 264/270 Bay State Road.
O ce hours: Mon 3-5, Fri 2-3.
Email: [email protected]
Logistics
Lectures: Tu-Th 11-12:30, room GCB 209.
Review s
Econ 502, Spring 2012
Franois Gourio
Homework 6 - Answer Key
Instructor: Francois Gourio
Problem 1: Simple General Equilibrium Model: a shock to demand
Consider the two period model we solved in class, with xed labor supply and government spending,
C1 + G
Econ 502, Spring 2012
Francois Gourio
Homework 2
Due Friday, Feb 10rd in the TF session, or Thursday Feb 9nd in class
Cross-country variation in income per capita and convergence: Empirics
This problem requires you to analyze real data using econometric t
Ec 502: Financial crisis
Franois Gourio
Boston University
2012
Franois Gourio (BU)
Ec 502
2012
1 / 43
2007-2009 Financial crisis I
1
Housing boom in the 2000s
Prices and construction rose
2
House prices fall starting in 2006
subprime borrowers start defau
Lectures on Growth Overview
Franois Gourio
2012
Franois Gourio ()
Lectures on Growth Overview
2012
1/3
Key facts we introduced at the beginning of class
Fact 1: positive, stable growth of 2% per capita in US and developed
countries, since around 1800 (ind
Ec 502: Notes on Consumption and Savings
Franois Gourio
1
Motivation
These notes focus on an important economic choice: how much to consume vs. save.
When we analyzed the Solow model, we assumed that people saved a constant share s of their
income.
But, t
Syllabus
EC 502 Macroeconomics Fall 2016
Course Overview:
Instructor:
Simon Gilchrist
[email protected]
Room 404, 270 Bay State Road
Office Hours: T: 3:30-5:00, W 2:00-3:30
Teaching Assistant:
Pak Shing Ho
[email protected]
Office Hours: Th: 12:30-2:00.
Course De
EC 502 Lecture 8: Technological
Change and Growth
Stephen J. Terry*
The last lecture covered various theories for why different countries may have different levels of
productivity A(t). However, we have not discussed any explanations for the long-term gro
EC 502 Lecture 4: Implications of the Solow Model
Stephen J. Terry*
1
Convergence
1.1
Solow Theory
The central transition equation for kt in the Solow model is
kt+1 =
1
s
f (kt ) +
kt ,
(1 + g)(1 + n)
(1 + g)(1 + n)
implying that the growth rate of kt fro
EC 502 Lecture 10: Consumption and
Euler Equations
Stephen J. Terry*
1
From Growth to Business Cycles
Weve repeatedly emphasized that GDP or output or income grows at something like a constant
rate on average in the long run in economies like the US. Howe
Econ 502, Spring 2012
Franois Gourio
c
Homework 3 Answer Key
Problem 1: Distribution of Income Dynamics in the Solow Model
Consider the Solow model, with the following modication. There are two types of people, workers
and capitalists. There are Lt worker
Econ 502, Spring 2012
Francois Gourio
Homework 5
Due Friday, March 30th in the TF session, or Thursday March 29th in class
Instructor: Francois Gourio
Problem 1: Investment
Consider a rm that chooses capital to maximize the expected present discounted val
Econ 502, Spring 2012
Francois Gourio
Homework 3
Due Friday, Feb 17rd in the TF session, or Thursday Feb 18nd in class
Problem 1: Distribution of Income Dynamics in the Solow Model
Consider the Solow model, with the following modi cation. There are two ty
Econ 502, Spring 2012
Franois Gourio
Homework 4 Answer key
Consumption Smoothing: Empirical Tests
Note: I posted on blackboard a Stata do-le that does all the computations of this problem set.
Question 1
(b) Provide a set of summary statistics including m
Econ 502, Spring 2012
Franois Gourio
Homework 7 - Answer Key
Instructor: Francois Gourio
Problem 1 Monetary and Fiscal Policy
Consider an economy where output is growing at 2% per year, i.e.
Yt+1
= 1:02;
Yt
and the real interest rate is 4%. The current pu
Econ 502, Spring 2012
Franois Gourio
Homework 7
Due in class, Thursday, April 26th
Instructor: Francois Gourio
Problem 1 Monetary and Fiscal Policy
Consider an economy where output is growing at 2% per year, i.e.
Yt+1
= 1:02;
Yt
and the real interest rate
Econ 502, Spring 2012
Francois Gourio
Homework 5
Due Friday, March 30th in the TF session, or Thursday March 29th in class
Instructor: Francois Gourio
Problem 1: Investment
Consider a rm that chooses capital to maximize the expected present discounted val
Econ 502, Spring 2012
Franois Gourio
Homework 6
Due Thursday, April 12
Instructor: Francois Gourio
Problem 1: Simple General Equilibrium Model: a shock to demand
Consider the two period model we solved in class, with xed labor supply and government spendi
Overview & Growth Facts
EC 502: Macro Theory
Stephen Terry
Boston University
1
Course Logistics
I
I
I
Contact info, office hours, and section time on syllabus
Self-contained lecture notes will be posted on Blackboard
in advance of each class. I will not p
EC 502 Lecture 6: Solow Model with Human
Capital in the Data
Stephen J. Terry*
Our goal is to come up with a working theory for why some nations are poorer or richer than others.
The Solow model predicts a positive correlation between the savings rate and
EC 502 Lecture 5: Solow Model in
Continuous Time
Stephen J. Terry*
1
Continuous Time Basics
We have previously worked with discrete time using integer values for t = 0, 1, 2, . However, this
lecture introduces a version of the Solow model in continuous ti
EC 502 Lecture 14: Investment with Adjustment
Costs and Financial Constraints
Stephen J. Terry*
In the previous lecture we discussed the firm value maximization problem for investment, i.e.
s
X
1
max Et
Dt+s ,
1+r
cfw_It+s
s=0
s=0
s.t. Dt+s = (Kt+s ; A
EC 502 Lecture 15: General Equilibrium and
Real Business Cycles
Stephen J. Terry*
In the previous two major topics, weve considered the optimal consumption/savings choice of
households and the optimal investment choice of firms separately. These are known
EC 502 Lecture 17: Even More On Real
Business Cycles
Stephen J. Terry*
1
Infinite-Horizon RBC Model: Uncertainty & No Capital
Just like our approach to studying consumption and investment, were building up towards a full,
infinite horizon RBC model with u
EC 502 Lecture 16: More on Real Business Cycles
Stephen J. Terry*
1
Adding Fiscal Policy via Government Spending
Lets start with the two-period RBC model with fixed labor supply from last time. We can summarize
the equilibrium with the same equations as b
EC 502: Problem Set 1
Due: February 2 (start of class)
1.
GDP Data for Atlantis
The Central Statistical Bureau of the island nation of Atlantis, which uses the Triton as its
currency, produced the following data for the small country. The population data