Macroeconomic Analysis
ECON 6022 B
Fall 2011
Problem Set 2
September 27, 2011
DUE: 6:45 pm, Thursday, October 13, 2011. Please turn in your solution before the mid-term exam starts.
Late problem sets will not be accepted. Please do not submit your solutio
Macroeconomic Analysis
ECON 6022
Fall 2014
Oct 25, 2014
INSTRUCTIONS:
Timing and points: The exam lasts for 150 minutes. The maximal number of points to be attained for
this exam is 100 points.
Language: Please formulate your answers in English.
Identi
Macroeconomic Analysis
ECON 6022
Fall 2015
Problem Set 2
October 10, 2015
DUE: 2:00PM, Saturday, Oct 24, 2015. Please turn in your solutions in hard copies in assignment box at
KKL 9th oor with Stevens name and course code on it. Late problem sets will NO
Macroeconomic Analysis
ECON 6022 B
Fall 2011
Problem Set 4
November 3, 2011
1
Money and Business Cycles I
Q6, Chapter 15, Macroeconomics: A modern approach, Robert Barro, Page 388.
Solution:
The model predicts that deviations from trend GDP will be tempor
ECON 6022
Problem Set 4
Suggested Solutions
Fall 2014
December 10, 2014
1
Money and Business Cycles I
(Q6, Chapter 15, Macroeconomics: A modern approach, Robert Barro, Page 388)
When expectations are rational, errors made in estimating the price level wil
ECON 6022
Problem Set 3
Suggested Solutions
Fall 2014
November 23, 2014
1
Volatility of consumption and investment in a real business cycle
model
Consider a model with overlapping generations. In each period one consumer is born, and each consumer
lives f
Macroeconomic Analysis
ECON 6022
Fall 2014
Problem Set 1
September 26, 2014
DUE: 2:30PM, Monday, Oct 6, 2014. Please turn in your solutions in hard copies in Ms. Wang Xiaowens
mailbox at KKL 11th oor. Late problem sets will NOT be accepted.
1
The Solow Mo
ECON 6022
Problem Set 2
Suggested Solutions
Fall 2014
November 4, 2014
1
Optimal Consumption with Financial Wealth
In lecture 2, we saw an example where the household only lives for two periods. Now suppose the household
lives for N periods, from Period 1
ECON 6022
Problem Set 2
Suggested Solutions
Fall 2015
October 21, 2015
1
Halls Permanent Income Model (Optional)
Consider the Halls Permanent Income model. Consumer solves the following maximization problem:
max Et cfw_
i=0
i [(1/2)(C Ct+i )2 ]
subject t
Macroeconomic Analysis
ECON 6022A
Fall 2011
Problem Set 4
November 2, 2011
1
The price level and money demand
Suppose the price level in the economy is P . Real money demand L(Y, i) is the same as weve discussed in
Lecture 6. So nominal money demand is as
Macroeconomic Analysis
ECON 6022
Fall 2014
Problem Set 4
November 28, 2014
DUE: 14:30 pm, Wednesday, Dec.10. Late problem sets will not be accepted. Please put your answers into
Ms. Wang Xiaowens mailbox at 11/F KKL.
1
Money and Business Cycles I
(Q6, Cha
Macroeconomic Analysis
ECON 6022
Fall 2014
Problem Set 3
November 16, 2014
DUE: 2:30 pm, Monday, December 1, 2014. Please turn in your solutions in hard copies in Ms. Wang
Xiaowens mailbox at KKL 11th oor. Late problem sets will NOT be accepted.
1
Volatil
ECON 6022
Problem Set 1
Suggested Solutions
Fall 2014
September 26, 2014
1
The Solow Model with Exogenous Productivity Growth
Now consider an extension of the basic Solow Model in Lecture 2, where the production function takes the
following form,
Y = AK L
Macroeconomic Analysis
Econ 6022
Lecture 3
Fall, 2015
1 / 52
Goals
In Solow model we assume that saving rate is constant.
In other words, we have not understood the households
saving behavior.
In this lecture, we want to study why household save and
wh
Macroeconomic Analysis
Econ 6022
Lecture 5
Fall, 2015
1 / 84
Money
We have spent lots of time on Growth and Cycles
They are real models.
We need to understand the role played by Money in this
economy!
Money matters?
- Short run: We need money to under
Macroeconomic Analysis
Econ 6022
Lecture 4
Fall, 2015
1 / 63
Overview
What is a Business Cycle?
Business Cycle Facts
A framework for analysis of business cycles
2 / 63
Cycles and Growth in the U.S.
3 / 63
Stylized Business Cycles
4 / 63
Trend vs. Cycle
1
Precautionary Saving and Prudence
One behavior under uncertainty that is observed with regularity is the willingness to save
more in the present in response to increased uncertainty in the future. This behavior
is referred to as the precautionary saving
Macroeconomic Analysis
ECON 6022
Fall 2015
The Interest Rate and Savings
September 17, 2015
This exercise shows you how substitution, income and wealth eects play out in an inter-temporal model. It
will not be covered in the lecture and it is only intende
Overview
Physical Capital and Production Function
The Solow Model
Growth Accounting
Macroeconomic Analysis
Econ 6022
Lecture 2
Fall, 2015
1 / 55
Overview
Physical Capital and Production Function
The Solow Model
Growth Accounting
Recap: Lecture 1
Recent e
Macroeconomic Analysis
ECON 6022
Fall 2014
Problem Set 2
November 4, 2014
DUE: 2:30 pm, Monday, Nov 3, 2014. Please turn in your solutions in Ms. Wang Xiaowens mail box at
KKL 11th floor. Late problem sets will not be accepted. Please do not submit your s
Macroeconomic Analysis
ECON 6022
Fall 2015
Suggested Solution to Problem Set 4
December 1, 2015
1
Ricardian Neutrality I
Consider an economy that lasts for 2 periods t = 1, 2. The economy is populated by a mass 1 of households,
all equal, with preferences
Chapter 20
Consumption
Charles I. Jones, Stanford GSB
Preliminary, Comments Welcome
Learning Objectives:
In this chapter, we study
the neoclassical consumption model, in which individuals choose the time path of their
consumption to maximize utility.
ho
Macroeconomic Analysis
ECON 6022
Fall 2015
Problem Set 1
September 19, 2015
DUE: 12:00PM, Monday, Oct 5, 2015. Please turn in your solutions in hard copies in assignment box at
KKL 9th oor with Stevens name and course code on it. Late problem sets will NO
Macroeconomic Analysis
ECON 6022
Fall 2015
Solution to Problem Set 3
November 14, 2015
1
Volatility of consumption and investment in a real business cycle
model
Consider a model with overlapping generations. In each period one consumer is born, and each c
Overview
Physical Capital and Production Function
The Solow Model
Growth Accounting
Macroeconomic Analysis
Econ 6022
Lecture 2
Fall, 2015
1 / 55
Overview
Physical Capital and Production Function
The Solow Model
Growth Accounting
Recap: Lecture 1
Recent e
Life Cycle Earnings and the Household Saving Puzzle in a
Fast-Growing Economy
Zheng Michael Song
Fudan University and Chinese University of Hong Kong
Dennis T. Yang
Chinese University of Hong Kong
February 8, 2010
Abstract
Rising saving rate, prominent am
1
Precautionary Saving and Prudence
One behavior under uncertainty that is observed with regularity is the willingness to save
more in the present in response to increased uncertainty in the future. This behavior
is referred to as the precautionary saving
ECON 6022
Problem Set 1
Suggested Solutions
Fall 2016
September 20, 2016
1
Cobb-Douglas production function
Suppose the Cobb-Douglas production function takes the following form,
Y = A K N 1
where 0 < < 1 is a parameter.
1. Show that the production functi
Lecture Notes for E322
Bulent Guler
bguler@indiana.edu
Indiana University Bloomington
Bulent Guler (Indiana)
Macroeconomics [4th ed.]
Fall 2012
1 / 50
Chapter 10: Real Intertemporal Model With Investment
Chapter 10: Real Intertemporal Model With
Investmen