ADVANCED MACROECONOMICS Lecture 1 Introduction 电子科大经管学院马捷
ADVANCED MACROECONOMICS Lecture 1 Introduction 电子科大经管学院 马捷 1
Contents The Class.... ·Topics Growth Facts -Questions -Harrod-Domar Model 电子科大经管学院马捷 2 元元元元元
Contents The Class…. Topics Growth Facts Questions Harrod-Domar Model 电子科大经管学院 马捷 2
Topics Growth Theories (Week 1-5) Models of Exogenous Growth Models of Endogenous Growth 。New Growth Theory Fluctuation Theories (Week 7-8) ·RBC Models The "new Keynesian"model Consumption and Investment (Week 9) Unemployment (Week 10) 电子科大经管学院马捷 3
Topics Growth Theories (Week 1-5) • Models of Exogenous Growth • Models of Endogenous Growth • New Growth Theory Fluctuation Theories (Week 7-8) • RBC Models • The "new Keynesian" model Consumption and Investment (Week 9) Unemployment (Week 10) 电子科大经管学院 马捷 3
You? -Are you interested in Macroeconomic? Any Macro class before? -Your major? 0 Which programming and econometric software are you using? 电子科大经管学院马捷 元元元元元
You? Are you interested in Macroeconomic? Any Macro class before? Your major? Which programming and econometric software are you using? 电子科大经管学院 马捷 4
Growth Facts (1) GDP in constant 2000 US$(Source:WDI 2009) 1.20E+13 1.0oE+13 -China 8.00E+12 -Japan -Mexico 6.00E+12 -Nigeria 4.00E+12 -Singapore -Spain 2.00E+12 -United Kingdom -United States 0.00E+00 8温器昏百客暑雪金金員目育 电子科大经管学院马捷 5 元元兄
Growth Facts (1) GDP in constant 2000 US$ (Source: WDI 2009) 电子科大经管学院 马捷 5 0.00E+00 2.00E+12 4.00E+12 6.00E+12 8.00E+12 1.00E+13 1.20E+13 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 China Japan Mexico Nigeria Singapore Spain United Kingdom United States
Growth Facts(2) -GDP per capita in constant 2000 US$(WDI 2009) 45000 40000 35000 -China 30000 -Japan -Mexico 25000 -Nigeria 20000 -Singapore 15000 -Spain 10000 -United Kingdom 5000 -United States 0 昌喜曾昌魯营客会昌員 电子科大经管学院马捷 6 元元兄
Growth Facts (2) GDP per capita in constant 2000 US$ (WDI 2009) 电子科大经管学院 马捷 6 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 China Japan Mexico Nigeria Singapore Spain United Kingdom United States
Jones Facts(1998) 1.Large variation in per capita income across economics 2.Countries can move from being poor to being rich and vice-versa For instance:Hong Kong,South Korea and vice- versa:Argentina 3.Growth in output and growth in trade volume are closely related Jones,C.I.(1998),Introduction to Economic Growth,W.W. Norton,New York,Chapters 1-5,8,9 and Appendix A
7 Jones Facts (1998) * 1. Large variation in per capita income across economics 2. Countries can move from being poor to being rich and vice-versa For instance: Hong Kong, South Korea and viceversa: Argentina 3. Growth in output and growth in trade volume are closely related *Jones, C. I. (1998), Introduction to Economic Growth, W.W. Norton, New York, Chapters 1 - 5, 8, 9 and Appendix A
Questions Why persistent differences? -Why large differences in growth rates? What drives growth in the world overall? 电子科大经管学院马捷 8 元元元元元元
Questions Why persistent differences? Why large differences in growth rates? What drives growth in the world overall? 电子科大经管学院 马捷 8
Magic numbers Let yo be the GDP per capita at year 0,y the GDP per capita at year T,and x the average annual growth rate over that period Then, y=(1+x)T yo Taking logs,we compute lny灯-lnyo=Tln(1+x)≈Tx, or equivalently x=(In yr-In yo )/T
Magic numbers Let y0 be the GDP per capita at year 0, yT the GDP per capita at year T , and x the average annual growth rate over that period. Then, yT = (1+ x ) T y0 Taking logs, we compute ln yT - ln y0 = T ln(1+ x) ≈T x, or equivalently x = (ln yT - ln y0 )/T . Chyi, Macro I, 2006
Magic numbers For example: 1.US per-capita GDP,1995 prices ·$3300in1870 grew by a factor≈I0 "$32500in2000 →average growth rate: g=[ln(32500)-ln(3300)]/130=1.75%. 2.China with a annual rate as high as 10%, which accumulates to a factor of 17.45 over the 30-year period
Magic numbers For example: 1. US per-capita GDP, 1995 prices $3300 in 1870 $32500 in 2000 average growth rate: g = [ln(32500)-ln(3300)]/130=1.75%. 2. China with a annual rate as high as 10%, which accumulates to a factor of 17.45 over the 30-year period. grew by a factor ≈ 10 Chyi, Macro I, 2006
