Homework #10
Economics 411
Fall, 2011, Due Thursday, December 2.
Christiano
1. Consider the `Moral Hazard I' model in the manuscript, `Government
Policy, Credit Markets and Economic Activity'. Conside
Homework #9
Economics 411
Due Wednesday, November 23
Christiano
1. (Financial friction theory of Solow residual). Consider an economy
in which a nal good is produced using the following Dixit-Stiglitz
Homework #8
Economics 411, fall 2011
Due Wednesday, November 16
Christiano
1. Consider the Christiano-Harrison model analyzed in the previous homework. You established a characterization result for th
Homework #7
Economics 411, fall 2011
Due Wednesday, November 9
Christiano
1. (Dynamic Ine ciency in OG Models). Consider the overlapping generations model in which the utility of the generation born a
Homework #6
Economics 411
Due Wednesday, November 2
Christiano
1. Consider a two-sector economy with the following preferences:
1
X
t
u (ct ; lt ) ;
t=0
where
u (c; l) =
(
[c(1 l) ]1
1
; 6= 1; > 0
:
l
Homework #5
Economics 411, Fall 2011
Due Wednesday, October 26.
Christiano
1. Consider the neoclassical growth model in the second question of homework 4, in which 6= : Consider two alternative de nit
Homework #4
Economics 411, Fall 2011
Due Wednesday, October 19.
Christiano
1. Suppose a planner chooses to maximize, by choice of c0 ; c1 ; c2 ; : : : ; the
following expression:
u(c0 ) + [ u(c1 ) +
2
Homework #3
Economics 411-1
Due Wednesday, October 12
Christiano
1. Consider the version of the neoclassical growth model in which preferences have the following form:
1
X
t
u (ct
c) ;
t=0
where c > 0
Homework #2
Economics 411-1
Due Wednesday, October 5
Christiano
1. This question is designed to illustrate Blackwell's Theorem, Theorem
3.3 on page 54 of S-L. That theorem represents a set of conditio
Economics 411
Christiano
(Revised)
Financial Frictions Under Asymmetric Information and Moral Hazard
In the past two decades several economies have experienced a `Sudden Stop':
over a brief period of