Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2015
Economics 164
Prof. Gary Hansen
Assignment 2
1. The neoclassical production function is a function F K , N , where K is capital and N
is labor, that satisfies the following assumptions:
(i) Constant returns to scale: F ( K , N ) F K , N for all 0 ;
(ii) P
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2015
Economics 164
Prof. Gary Hansen
Answer to Assignment 5 (Problem 2)
2. Consider a Malthusian model with capital. That is, Yt S 1 K t 2 ( At Lt )11 2 ,
At 1 (1 g ) At , and Lt 1 (1 ) Lt . In this case S is the (constant) quantity of land, L is
labor, and A
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2014
Economics 164L
Prof. Gary Hansen
Possible Topics for Economics in Action Conference
Basic Organization: Students will work in groups of three and prepare a 10 minute presentation.
Each member of the group will participate in the presentation and speak for
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2015
Econ 164
Technical Note 4: Malthus to Solow
The Model Economy
A general formulation of this economy is one in which there are two production
processes available for producing output. The first is denoted the Malthus Technology and is
land intensive like t
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2014
Economics 164
Prof. Gary Hansen
Assignment 2
1. The neoclassical production function is a function F K , N , where K is capital and N
is labor, that satisfies the following assumptions:
(i) Constant returns to scale: F ( K , N ) F K , N for all 0 ;
(ii) P
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2015
Economics 164
Prof. Gary Hansen
Assignment 1
The purpose of this assignment is to familiarize you with some of the properties of
difference equations. Economic time series in the models we will be studying will evolve
according to this type of equation. I
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2015
Economics 164
Fall 2012
Name_
Student ID Number_
Answers to Midterm Exam
Instructions: You have 75 minutes to complete this exam. No calculators, notes, or
other devices are allowed. You should write your answers on this sheet. If you get stuck
on problem
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2015
Economics 164
Prof. Gary Hansen
Assignment 3
In this assignment, the goal is to study the evolution of per capita output in the Solow
growth model with population growth and technological progress. Assume that total output is
determined by Yt K t ( At Lt
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2015
Week 6 Note: Malthusian Model: What
happens when you add Das Kapital?
Colin Weiss
November 13, 2014
Deriving the stationary dierence equation with
exogenous population growth
In class, we went through this complicated process to take our dierence
equation
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2015
Econ 164
Technical Note 5: Making the Growth Rate Endogenous
The goal here is to augment the basic Solow growth model with a theory for how useable
knowledge ( At ) is produced and thereby to have a model that determines the rate of growth of
At . The mod
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2015
Economics 164
Prof. Gary Hansen
Assignment 4
1. Consider the Malthusian model where Yt S ( At Lt )1 , At 1 (1 g ) At , and
Lt 1 (1 ) Lt . In this case S is the (constant) quantity of land, L is labor, and A is
technological progress. Assume that , g 0 .
a
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2015
Econ 164
Technical Note 2: The Optimal Rate of Savings
The basic Solow growth model with CobbDouglas production is summarized by the
following set of equations:
AK t L1 , where 0
t
Yt
Kt
Lt
(1
1
) Kt
(1
1
1 and A 0 ,
sYt , where 0
) Lt , where
1 and 0
s
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Spring 2015
ECON 164: Theory of Economic Growth
Pablo Fajgelbaum
UCLA
March 31, 2015
Fajgelbaum (UCLA)
ECON 164: Introduction
March 31, 2015
1 / 49
ECON 164: Theory of Economic Growth
Teacher is Pablo Fajgelbaum, away this week
Classes
Mondays and Wednesdays, 2:00 to
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Spring 2015
Notes on the Solow Model
Pablo Fajgelbaum
Last Updated: March 25, 2015
1
Intro
These notes present the basic version of the Solow model.
Sections 2 to 6 in these notes complement Chapter 3 from Weils textbook
Section 7 in these notes complements Sectio
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Spring 2015
Problem Set 2: Due Monday, June 8
Econ 164
UCLA Department of Economics
May 23, 2015
You can work in groups (up to 3 people). You can turn a single problem set for the
group. The problem set is due on Monday, June 8th
You can submit your problem set by em
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Spring 2015
Notes on the Solow Model (II)
Pablo Fajgelbaum
Last Updated: April 20, 2015
1
Intro
These notes correspond to the classes of 04/13, 04/15, 04/20 and 04/22.
We continue developing the Solow model. In these lectures we look at dynamics.
2
Review
We alrea
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Spring 2015
ECON 164: Theory of Economic Growth (UPDATED:
04/06)
Pablo Fajgelbaum
UCLA
April 19, 2015
Fajgelbaum (UCLA)
ECON 164: Introduction
April 19, 2015
1 / 53
ECON 164: Theory of Economic Growth
Classes
Mondays and Wednesdays, 2:00 to 3:15 pm
O ce Hours: Friday
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Spring 2015
ECON 164: Theory of Economic Growth
Population
Pablo Fajgelbaum
UCLA
April 27, 2015
Fajgelbaum (UCLA)
ECON 164: Population
April 27, 2015
1 / 22
Population and Growth in the Long Run: Overview
Note: these slides complement Chapter 4 of Weil textbook
s
Faj
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Spring 2015
ECON 164: Theory of Economic Growth (Spring 2015)
Pablo Fajgelbaum (UCLA)
Lectures: Mondays and Wednesdays, 2:00 to 3:15 pm (Haines A2)
Office Hours: Fridays, 12 PM (8347 Bunche Hall)
Midterm Exam: Monday, May 4, in class.
Final Exam: Thursday, June 11,
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Spring 2015
Problem Set 1
Econ 164
UCLA Department of Economics
April 24, 2015
You can work in groups (up to 3 people). You can turn a single problem set for the
group. The problem set is due on Wednesday, April 29th.
1. Consider the following standard Solow Growth M
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Spring 2015
Notes on the Solow Model (I) with Answers to
Practice Questions
Pablo Fajgelbaum
Last Updated: April 20, 2015
1
Intro
These notes correspond to the class of 04/08
These notes present the basic version of the Solow model.
Basic idea: dierences in capita
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Spring 2015
Notes on the Solow Model (I)
Pablo Fajgelbaum
Last Updated: April 8, 2015
1
Intro
These notes correspond to the class of 04/08
These notes present the basic version of the Solow model.
Basic idea: dierences in capital per worker drive dierences in inco
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Spring 2015
Notes on the Solow Model (II) with Answers to
Practice Questions
Pablo Fajgelbaum
Last Updated: April 20, 2015
1
Intro
These notes correspond to the classes of 04/13, 04/15, 04/20 and 04/22.
We continue developing the Solow model. In these lectures we l
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2014
Educations Effect on Income Inequality: A Further Look
Ryan Wells
Abstract
Income inequality affects countries across all levels of development and with varying
demographic, sociological, and economic characteristics. Utilizing a globalization framework
t
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2014
Annotated Bibliography A3
1. Dunn, Catherine. "S&P: Income Inequality and 'Education Gap' Hurting Economic Growth."
International Business Times. IBT Media Inc., 5 Aug. 2014. Web. 19 Oct. 2014.
Summary: Dunn explains the existent and ever growing income i
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2014
Prof. Safarzadeh
Quiz # 3
Time: 50 Minutes
UNIVERSITY OF SOUTHERN CALIFORNIA
Marshall School of Business
EON 352 Macroeconomic for Business
Fall 2015
Version A
Student Name:_
I. Choose the Best Answer to the following questions:
1. Velocity of money is:
a
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2014




What is the Lipsitzs main claim?
o Unspoken benefits to whiteness
o Systematic advantages
o Abundance of whiteness in US culture
o Thesis: The investment of whiteness is created by, and existent in United States
culture and society in general, whi
Advanced Topics in Macroeconomics: Theory of Economic Growth
ECON 164

Fall 2014
Macroeconomics
Test Yourself
Chapter7
1.
Which of the following is a characteristic of "bonds"?
a. pay zero interest.
b. can be used for transactions.
c. are sold for a price that varies inversely with the interest rate.
d. all of the above.
e. none of th