Diary of Econ 7210, Spring 23, 2nd Session
1. 5 Mar 24 We review again Competitive finish Measure Theory
4. Mar 22 We went over endogenous productivity and competitive search. We start Measure Theory
3. Mar 20 Pricing Securities and Competitive Search
- We use no arbitrage conditions to price all kind of securities. We
discuss the role of Preference Shocks. We start endogenous
productivity and competitive search.
2. Mar 15 Recursive Equilibria without and with Distortions and the Lucas Tree
- We talk about the economy with a stock market. We start talking
about economies with heterogeneity, starting with wealth. We talk
about other types of heterogeneity (skills) and move into a two
country economy. We start the Lucas tree. We look at Lucas trees
and derive a pricing condition.
1. Mar 13 Intro
- I describe the course and discussed some context of what are the
main facts over which macro has to be organized around:
- output per capita has grown at a roughly constant rate
- the capital-output ratio has remained roughly constant (where
capital is measured using the perpetual inventory method
based on past consumption foregone)
- the capital-labor ratio has grown at a roughly constant rate
equal to the growth rate of output
- the wage rate has grown at a roughly constant rate equal to
the growth rate of output
- the real interest rate has been stationary and, during long
periods, roughly constant
- labor income as a share of output has remained roughly constant
- hours worked per capita have been roughly constant.
- I discuss what restrictions do these facts pose on the models
that we use.
- I discuss some of the limitations of this point of view.
- I discuss what is the meaning of an equilibrium (a mapping
from environment to allocations)
- I go very fast over RCE equilibrium. First an optimal one. Then a
few that are not optimal: We pose a government that spends.
- We describe equilibrium of economies where the welfare theorems are
of no use: a government financing a public good with capital income
taxes.
- We discuss an environment with capital income taxation and
government debt.
- We talk about various forms of habits and/or externalities in
consumption.
Author: José Víctor Ríos Rull
Created: 2023-03-22 Wed 15:55
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