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