Macroeconomic Theory

Dublin Core

Title

Macroeconomic Theory

Subject

Macroeconomic Theory

Description

After a quick warm-up for dynamic general equilibrium models in the first part
of the course we will discuss the two workhorses of modern macroeconomics, the
neoclassical growth model with infinitely lived consumers and the Overlapping
Generations (OLG) model. This first part will focus on techniques rather than
issues; one first has to learn a language before composing poems.
I will first present a simple dynamic pure exchange economy with two infinitely
lived consumers engaging in intertemporal trade. In this model the
connection between competitive equilibria and Pareto optimal equilibria can be
easily demonstrated. Furthermore it will be demonstrated how this connection
can exploited to compute equilibria by solving a particular social planners
problem, an approach developed first by Negishi (1960) and discussed nicely by
Kehoe (1989).

Creator

Dirk Krueger

Files

Collection

Tags

Citation

Dirk Krueger , “Macroeconomic Theory,” Portal Ebook UNTAG SURABAYA, accessed March 15, 2025, https://ebook.untag-sby.ac.id/items/show/186.