Diary of Econ 244, Spring 20

We have the third midterm

We finish the discussion of what to do.

We finish the discussion of damages and we start looking at the problem of what to do.

We continue wit the model of climate change and we look at damages.

We begin to look at climate change. We look models of Carbon Circulation.

We finish externalities (9).

We look at externalities.

We have the second midterm.

We talk about social insurance. Second Homework is due.

We finish talking about Social Security.

We look at how our theory accounts for international differences in hours worked. We start talking about Social Security. (267)

We continue looking at the problem of a household with consumption, and labor and capital income taxes. We look at the proposition that labor and consumption taxes are the same with and without labor income.

We start looking at how our theory accounts for international differences in hours worked.

Canceled

Canceled

We talk about a few other properties of the U.S. tax system. We discuss Social Welfare Functions. We start looking at the problem of a household with consumption, and labor and capital income taxes.

We finish Generational Accounting. We start talking about the U.S. income tax system and its properties (progressivity, regressivity, the marriage tax penalty).

We start looking at The Fiscal Situation in the U.S. and Generational Accounting (166). We go over a summary of Gokhale’s Generational Accounting findings. We start the history of U.S. income taxes, the U.S. income tax rates.

We review the Ricardian Propositions and its exceptions: Borrowing constraints, transfers of the tax burden (to the extent that altruism is not operational), and non lump sum taxation (looking for examples of it, like the poll tax or the tax of height).

We have the first midterm.

We start part III. We talk about the Laffer Curve and the Ricardian Proposition. The first homework is due. (Slide 152)

We go over income risk. We talk about various issues involved in the existence of precautionary savings.

We finish the many period model including an example and how it fares with respect to the empirical evidence.

We review the General Equilibrium Overlapping Generations Model. We talk about the fall of labor share and its 3 candidate explanations. We discuss in detail taxes in the two period model, including a discussion of what taxes could be both progressive and non distortionary. We start with Part II, the life cycle model. (Slide 94)

We discuss the two period Overlapping Generations Model. We discuss a the steady state (capital, wages, interest rate, consumptions). We look at dynamics. We look at population growth. We start talking about taxes. (To 78)

We finish solving the model with perfect borrowing. We look at borrowing constraints. We discuss bankruptcy and some properties of the U.S. bankruptcy code. We start looking at the general equilibrium model. (slide 58)

I continue the two period model with the constraints, the first order conditions and discussed the guarantee of a unique solution. I go onto the graphic description of the problem and performed comparative statics exploring the response of choices to changes in endowments and interest rates. (slide 47)

I finish with the facts (state and local, cyclical behavior, debt). I start the two period model with the description of the objective function. (slide 30).

We go over the rules of the course and some of the facts of the U.S. Federal sector (slide 17).