Transcription of Lecture notes for Macroeconomics I, 2004
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Lecture notes for Macroeconomics I, 2004 Per KrusellPlease do NOT distribute without permission!Comments and suggestions are 1 IntroductionThese Lecture notes cover a one-semester course. The overriding goal of the course isto begin provide methodological tools for advanced research in Macroeconomics . Theemphasis is on theory, although data guides the theoretical explorations. We build en-tirely on models with microfoundations, , models where behavior isderivedfrom basicassumptions on consumers preferences, production technologies, information, and so is always assumed to be rational: given the restrictions imposed by the primi-tives, all actors in the economic models are assumed to maximize their studies emphasize decisions with a time dimension, such as variousforms of investments.
Lecture notes for Macroeconomics I, 2004 ... This makes dynamic optimization a necessary part of the tools we need to ... in turn, sequential maximization and dynamic programming. We assume throughout that time is discrete, since it leads to simpler and more intuitive mathematics. The baseline macroeconomic model we use is based on the ...
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