Emprical Overview: Key
1. Consider the following regression result:
GDP Growtht = .02 0.01F ertilityt + 0.03EDU CAT IONt + t
(1)
a. All else equal, a unit unit increase in education (possibly measures in years of schooling)
corresponds to a 0.03 unit incr
ECO 270: Econometric Methods1
All economics majors at Bates must take considerable coursework in econometrics. This
topic is therefore redundant with coursework that students have taken, are taking, or will take
later. So I will keep this material brief.
Econ 270: Introduction and Brief Review of Principles1
Before beginning the heart of the class, we will rst discuss some more general material.
More so than in microeconomics, two good Principles of Macroeconomics classes may cover very
dierent ground. We
Growth: Empirical Evidence: Problems
I obtained data from the St. Louis Fed on the ratio of total government consumption and
investment to GDP, as well as the male civilian unemployment rate. The data are quarterly
and run from January 1947 through April
Econ 270: Theoretical Modeling1
Economics is certainly not the only social science to use mathematical theoretical models to
examine a particular question. But economics, since the 1960s, has evolved into the most formal
of the social sciences and as a re
ECO 270: Aggregate Production and the Solow Model1
This represents our rst attempt at a formal theoretical model. Most students will nd this topic
much more challenging than the material we have covered to date. Before beginning, recall that models are ju
Introduction: Key
1. Which which subeld(s) of macroeconomics best ts the following questions:
a. This is a classic question in the subeld of business cycles as it concerns short-run
macroeconomic performance. Because monetary policys eects are largely lim
Growth: Production and the Solow Model: Key
1. Obviously this is a subjective question. In my opinion, the assumption that total factor
productivity is exogenous is weak. By making this assumption, we limit the models ability
to discuss events or polices
ECO 270: Growth, The Endogenous Growth Model1
The Solow Model oers some important insights into economic growth. But once that
model converges to its steady state, the only source of sustained growth is from increased
TFP. Explaining why TFP increases is
Econ 270: Growth, the Empirical Evidence
We now begin this courses examination of long run macroeconomic conditions, a eld known
as economic growth. Before beginning, consider the following two examples as motivation:
1. Regardless of whether either count
Growth: Endogenous Growth: Problems
1.The key dierence between the two is that TFP is exogenous in the Solow Model while it is
endogenous in the Endogenous Growth Model. Specically, the growth of new ideas depends
on rms choice of how much labor to devote