Models for dynamic macroeconomics phần 10 ppt

... need for a further increase in e to maintain a constant level of employment, because for c ∗ ≥ 1allproductionoppor- tunities are accepted. The locus of stationary points is thus vertical for c ∗ > ... 54 (a) Given the assumptions, the expression for the dynamics of e is given by ˙ e =(1− e)ac ∗ − e 2 b, from which, setting ˙ e = 0, an expression for the locus of stationary points...

Ngày tải lên: 09/08/2014, 19:21

... E t+1 [·]is therefore based on a broader information set than that at E t [·]. ³⁴ We could have adopted other conventions for the timing of the exogenous and endogenous stock variables. For example, ... labor demand change if ∂ 2 R(Z i , N)/∂ N 2 = 0for i = b, g? And if this were true only for i = b? 104 LABOR MARKET that it will always be possible for them to react immediately, and...

Ngày tải lên: 09/08/2014, 19:21

... Foundations of Modern Macroeconomics, Oxford: Oxford University Press. Jones, L. E., and R. Manuelli (1990) “A Model of Optimal Equilibrium Growth,” Journal of Political Economy, 98, 100 8 103 8. Maddison, ... finally, there is an equilibrium with low (but non- zero) activity. For a formal analysis of the dynamics we linearize the system of dynamic equations (5.1) and (5.13) around a gen...

Ngày tải lên: 09/08/2014, 19:21

... qualitatively realistic enough to offer practical implications for the dynamics of labor market flows, for the steady state of the economy, and for the dynamic adjustment process towards the steady state. COORDINATION ... (5.46) For a given value of Ë, the wage is independent of the unemployment rate. The system can therefore be solved recursively for the endogenous variables u, Ë,a...

Ngày tải lên: 09/08/2014, 19:21

... happens if Î =1and if Î =0? Models for Dynamic Macroeconomics 3 Great Clarendon Street, Oxford ox2 6dp Oxford University Press is a department of the University of Oxford. It furthers the University’s ... xiii 1 Dynamic Consumption Theory 1 2 Dynamic Models of Investment 48 3 Adjustment Costs in the Labor Market 102 4 Growth in Dynamic General Equilibrium 130 5 Coordination...

Ngày tải lên: 09/08/2014, 19:21

... utility function in terms of habit formation. (b) From the first-order condition of the maximization problem, derive the dynamic equation for c t+1 , and check that this formulation of utility violates ... specified, the information set used to form expectations of future incomes and to derive innovations is limited to past income values only. If agents form their expecta- tions using addit...

Ngày tải lên: 09/08/2014, 19:21

... the static models studied in introductory microeconomic courses. As to investment costs, a formal treatment of the problem needs to 2 Dynamic Models of Investment Macroeconomic IS–LM models assign ... unavoidable 64 INVESTMENT Figure 2.7. Dynamic effects of an announced future change of w one associated with the initial re-optimization in light of new, unforeseen information arrivin...

Ngày tải lên: 09/08/2014, 19:21

... general feature of dynamic optimization problems, namely the character of interaction between endogenous capital and exogenous forc- ing variables: the former depends on the whole dynamic path of ... derivations can be performed for cases where capital depreciates and/or the firm employs perfectly flexible factors (such as N in the previous sections’ models) . To obtain closed-form solut...

Ngày tải lên: 09/08/2014, 19:21

... these aspects by third parties. Many recent growth models allow for increasing rather than constant returns to scale, and are therefore naturally forced to study markets and productive structures ... ensured that the dynamic path of the economy maximized the welfare of a hypothetical representative agent. In the rest of this chapter we consider models for which the macro- economic d...

Ngày tải lên: 09/08/2014, 19:21

... 1990s,” Centre for Economic Performance Dis- cussion Paper 502; forthcoming in P. Aghion, R. Frydman, J. Stiglitz, and M. Woodford (eds.), Knowledge, Information and Expectations in Modern Macroeconomics: ... stochastic process for labor income, we have (E t+1 − E t ) y t+1 = ε t+1 , (E t+1 − E t ) y t+2 = −‰ε t+1 , (E t+1 − E t ) y t+i = 0 for i > 2. Applying the general formula f...

Ngày tải lên: 09/08/2014, 19:21