EC 502: Problem Set 1
Solutions
Due: February 4, 2016 (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
Ec 502 Problem Set 3
Spring 2017 Prof. Adam M. Guren
1. (Consumption Lecture 1) Consider a household that lives for two periods and consumes
C1 in period 1 and C2 in period 2. The household earns a wage (1 + r) W in period
2 and can save or borrow S which
Arbitrage and Financial Decision Making
Outline
Evaluating Costs and Benefits
Interest Rates and the Time Value of Money
Present Value and the NPV Decision Rule
Arbitrage and the Law of One Price
No-Arbitrage and Security Prices
The Price of Risk
2
Evalua
Time Value of Money
Deadlines
Check HW due dates!
12 exercises posted for Chapter 3
12 exercises posted for Chapter 4
Yuliya Daniels, TA for Tuesday and Thursday Classes
Email: [email protected]
Office hours:
Thu from 5 PM to 6 PM, Room 520E
Franklin Wood, T
Valuing Bonds
Deadlines
Check HW due dates!
10 exercises posted for Chapter 5
10 exercises posted for Chapter 6
11 exercises posted for Chapter 7
2
Outline for Today
Bond Cash Flows, Prices, and Yields
Dynamic Behavior of Bond Prices
The Yield Curve and B
Interest Rates
Deadlines
Check HW due dates!
12 exercises posted for Chapter 4
10 exercises posted for Chapter 5
Yuliya Daniels, TA for Tuesday and Thursday Classes
Email: [email protected]
Office hours:
Thu from 5 PM to 6 PM, Room 520E
Franklin Wood, T
Ec 502 Lecture 5: Human Capital and the Solow Model
Adam M. Guren1
February 2, 2017
Today we are going to look at the role of human capital in growth. We will focus on a
famous paper by Mankiw, Romer, and Weil (1992) which argues that the Solow model does
Ec 502 Problem Set 1 Solutions
Spring 2017 Prof. Adam M. Guren
1. (Lecture 1) Consider the following production function:
Y = AL K
(a) Does this production function have diminishing returns to each input
i. If + < 1?
Diminishing returns is related to the
Course Requirements
What is Macroeconomics?
Roadmap for the Semester
Introduction to Economic Growth
Economics 502: Macroeconomics
Adam M. Guren
Boston University
Spring 2017
Course Requirements
What is Macroeconomics?
Roadmap for the Semester
Introductio
Ec 502 Lecture 3: Implications of the Solow Model
Adam M. Guren1
January 26, 2017
Today we will talk about several implications of the Solow model and start thinking
about how well it can explain various features of the data.
1
Convergence
In the first l
Ec 502 Lecture 2: The Solow Model
Adam M. Guren1
January 24, 2017
1
Ingredients to the Solow Model
The Solow model is the workhorse model of economic growth and it won Robert Solow
the Nobel Prize
It provides a simple theory to understand the determinan
Ec 502 Lecture 4: The Solow Model in Continuous Time
Adam M. Guren1
January 31, 2017
Today we will re-analyze the Solow model in what is known as continuous time. This is
how Romer and Jones and Vollrath cover the Solow model. In some ways it is more conv
Ec 502 Problem Set 2
Spring 2017 Prof. Adam M. Guren
Note: The bulk of this problem set is the data exercise (questions 3 and 4). You should
be brief for questions 1-2.
1. (Lecture 7, very short answer) The prime minister of a developing country comes to
Ec 502 Problem Set 4
Spring 2017 Prof. Adam M. Guren
1. (Investment Lecture 1) User Cost and the Housing Market:
The user cost model is frequently applied to the housing market. This question walks
you through thinking about the user cost of capital in ho
Ec 502 Lecture 1: Production Functions
Adam M. Guren1
January 19, 2017
Having discussed some of the facts about growth, in the next class we will turn to the
workhorse model of growth: the Solow Model. The Solow Model helps us understand how
investment in
Syllabus
EC 502 Macroeconomics Fall 2015
Course Overview:
Instructor:
Simon Gilchrist
[email protected]
Room 404, 270 Bay State Road
Oce Hours: T: 3:30-5:00, W 2:00-3:30
Course Description:
This course explores theoretical and empirical issues of central im