Matthias Doepke - Marcroeconomics - Chapter 12 pdf

... on young. Government’s per-capita payments to the old, ,inperiod +1. Table 12. 1: Notation for Chapter 12 12.3 Social Security 127 Substituting back into equations (12. 13) and (12. 14) gives us optimal ... the market-clearing interest rate, 0 ? 12. 2 Temporary Changes in Government Spending 123 All of the figures that follow make the following assumptions: That in periods 1-5 the...

Ngày tải lên: 04/07/2014, 10:20

... single shock has long-run effects, and investment goes through a full cycle in response to this shock. Response to a Single Shock -0 .01 -0 .005 0 0.005 0.01 0.015 0.02 0.025 123 45678 Periods Deviation ... computers. Monetary shocks: We saw in Chapter 8 on inflation that there are real effects of mon- etary policy. Therefore random changes to money supply or interest rates are a po-...

Ngày tải lên: 04/07/2014, 10:20

... production function equa- tion (11.1) exhibits constant returns to scale, which means that if we double both inputs, output also doubles. Our choice of a constant-returns-to-scale production function ... with 1 See Chapter 1 for a discussion of growth rates and how to compute them. Chapter 11 Economic Growth This chapter examines the determinants of economic growth. A startling fact abo...

Ngày tải lên: 04/07/2014, 10:20

... 13.1: A government revenue func- tion that exhibits a Laffer curve. A Lump-sum Tax Now let us introduce a lump-sum tax of amount . 2 No matter what income the house- hold accumulates, it will be ... function of . The government’s period-by-period revenue function ( ) is now simply: ( )= ( SS SS ) where SS is the steady-state investment level (which is tax-exempt). We can find SS by solving ......

Ngày tải lên: 04/07/2014, 10:20