This course covers the Standard Trade model. It unifies Ricardian trade and the Heckscher-Ohlin model. The model shows that trade improves welfare. We then analyze trade barriers. We discuss when they can improve welfare for the country implementing them.
Ce cours est une introduction à la théorie de la croissance unifiée, qui essaie de comprendre l'évolution de l'économie pour toute l'histoire de l'humanité. Un élément central de cette théorie est la relation entre la consommation par tête, l'effet du progrès technologique sur la dépréciation du capital humain et comment ces deux facteurs déterminent le niveau d'éducation. Enfin, nous verrons également quelques applications empiriques de la théorie pour illustrer ses concepts clés.
This course introduces the Solow and Ramsey models for the students of L3.
The Ramsey model is a central workhorse model in modern macroeconomics that builds upon the Solow model by endogenizing savings. This improvement allows for a more realistic depiction of long-run economic growth, as individuals now have an incentive to save more in anticipation of future consumption. The course will cover the basic structure of the model and its key assumptions, including the role of intertemporal tradeoffs. Students will learn how to solve for the model's steady-state equilibrium.
Extension of the Ramsey model that incorporates a government. We analyse how fiscal policy affects the convergence of the model towards its steade state under different assumptions.
The Overlapping Generations (OLG) Model is a macroeconomic framework that departs from the Ramsey model by assuming that individuals only live for some periods or time, which creates heterogeneity across generations. Unlike the Ramsey model, the decentralized solution to the OLG model may not be optimal, and government intervention may be necessary. For instance, the OLG model shows that creating a public pension system may be optimal. The OLG model is very flexible and can accommodate a large range of assumptions. We revisit some papers that change the baseline model in interesting ways.