大二下专业课宏观经济学颜色lecture.pptxVIP

Lecture 13 Neoclassical Model (part 2)0 1A Standard Neoclassical Growth ModelGeneral equilibriumInfinite horizonRepresentative agentsA variation: A-K modelSee my notes 2A Neo-classical Growth Model with Leisure-Labor ChoiceOne consumer, one firmConsumer and firm trade in marketsMarkets for consumption C and labor N 3Market Prices· Prices:Price of consumption normalized to one Price for N is real wage w The Household’s Problem in the Market EconomyUtility function U(C,l)C: Consumption (coconuts)l: LeisureBudget constraintConsumption expenditure equals e from capital and labor·p is given, capital e4· N is given by time constraint: N=h-l The Consumer’s PreferencesUtility function U(C,l)Assumptions:More is better than less: Diversity is good: Falling MRS,Consumption and leisure are normal goods5 Indifference Curves6 7Properties of Indifference CurvesDownward sloping: Follows frompositive marginal utilitiesConvex: Follows from falling marginalrate of substitution Indifference Curves8 Marginal Rate of SubstitutionMRS: the minimum # of Coconuts consumer is willing to give up for another unit of leisureEqual to minus slope of indifference curveMathematically:9 The Budget Constraint10 The Optimization Problem· Maximize utility subject to the budgetconstraint by choosing l and Cs.t.11 12Graphical RepresentationDraw indifference curves as beforeDraw budget constraint as a functionof leisureOptimal choice is point in the budgetset that lies on the highest indifference curve Graphical Optimization13 14e· Slope of indifference curve equals slope of budget constraintSlope of budget constraint: wage wResult:wage = MRSThis is a very general result: the MRS between any two goods is given bythe relative price! Mathematical OptimizationSubstitute constraints into U(C,l)First-order condition with respect to l:· Result (once again): wage = MRS15 Example·wage equals 10 coconuts per hourTime: 24 hoursProfit and tax: p=30 and T=30·16 ExampleMaximization problem:Solution:,17 18Predicting the