foundations of neoclassical growth Daron Acemoglu 经济增长导论课件.pdf

14.452 Economic Growth: Lectures 4, Foundations of Neoclassical Growth Daron Acemoglu MIT November 5, 2009. Daron Acemoglu (MIT) Economic Growth Lecture 4 November 5, 2009. 1 / 79 Preliminaries Introduction Foundations of Neoclassical Growth Solow model: constant saving rate. More satisfactory to specify the preference orderings of individuals and derive their decisions from these preferences. Enables better understanding of the factors that a§ect savings decisions. Enables to discuss the ìoptimalityî of equilibria Whether the (competitive) equilibria of growth models can be ìimproved uponî. Notion of improvement: Pareto optimality. Daron Acemoglu (MIT) Economic Growth Lecture 4 November 5, 2009. 2 / 79 Preliminaries Preliminaries Preliminaries I Consider an economy consisting of a unit measure of inÖnitely-lived households. I.e., an uncountable number of households: e.g., the set of households H could be represented by the unit interval 0, 1 . [ ] Emphasize that each household is inÖnitesimal and will have no e§ect on aggregates. Can alternatively think of H as a countable set of the form H = f1, 2, ..., Mg with M = ∞, without any loss of generality. Advantage of unit measure: averages and aggregates are the same Simpler to have H as a Önite set in the form f1, 2, ..., Mg with M large but Önite. Acceptable for many models, but with overlapping generations require the set of households to be inÖnite. Daron Acemoglu (MIT) Economic Gro