Spending a Windfall: American Precious Metals and Euro-Asian Trade,
|
|
- Meghan Barnett
- 5 years ago
- Views:
Transcription
1 Spending a Windfall: American Precious Metals and Euro-Asian Trade, Nuno Palma (European University Institute and University of Groningen) André C. Silva (Nova SBE) American Economic Association Congress, San Francisco CA, 2016
2 Facts I The current account surplus of China today is not an historical novelty
3 Facts I The current account surplus of China today is not an historical novelty I From 1500 to 1800, silver comprised 90% of China s imports from Europe and European colonies (Pomeranz 2001, p.273)
4 Facts I The current account surplus of China today is not an historical novelty I From 1500 to 1800, silver comprised 90% of China s imports from Europe and European colonies (Pomeranz 2001, p.273) I China had scarcity of precious metals and di culties in setting a monetary standard
5 What we do I "[T]he rise of European trade with the east should be seen primarily as a consequence not of trade routes to the east but of the discovery of America [because of the discovery of precious metals]" (Harley 2004, p.179)
6 What we do I "[T]he rise of European trade with the east should be seen primarily as a consequence not of trade routes to the east but of the discovery of America [because of the discovery of precious metals]" (Harley 2004, p.179) I We test this hypothesis using a structural model which can simulate the counterfactual
7 What we do I "[T]he rise of European trade with the east should be seen primarily as a consequence not of trade routes to the east but of the discovery of America [because of the discovery of precious metals]" (Harley 2004, p.179) I We test this hypothesis using a structural model which can simulate the counterfactual I Using a dynamic general equlilibrium model, we construct a quantiative counterfactual in which a new route to Asia is found, without the discovery of precious metals
8 Llamas carrying precious metals in America
9 Motivation
10 Why is this important? I Precious metals contributed to the rise of Western Europe (Pomeranz 2001)
11 Why is this important? I I Precious metals contributed to the rise of Western Europe (Pomeranz 2001) Causal importance of new exotic goods to estimulate an industrious revolution (de Vries 2008, Voth 2008, Hersh and Voth 2009)
12 Why is this important? I I I Precious metals contributed to the rise of Western Europe (Pomeranz 2001) Causal importance of new exotic goods to estimulate an industrious revolution (de Vries 2008, Voth 2008, Hersh and Voth 2009) Importance of Asian luxuries in promoting Europe s industrial development (Berg 2004, 2007)
13 Why is this important? I I I Precious metals contributed to the rise of Western Europe (Pomeranz 2001) Causal importance of new exotic goods to estimulate an industrious revolution (de Vries 2008, Voth 2008, Hersh and Voth 2009) Importance of Asian luxuries in promoting Europe s industrial development (Berg 2004, 2007) I Porcelain, tea, silk (the iphones of the time)
14 Why is this important?
15 Why is this important? Source: Broadberry et al (2015)
16 Preview of results I Even with the new sea routes to Asia, without American precious metals early modern Euro-Asian trade would have been negligible
17 Preview of results I Even with the new sea routes to Asia, without American precious metals early modern Euro-Asian trade would have been negligible I Simulated dynamic general equilibrium model with calibrated transaction costs suggests that under the monetary injection European purchases of Asian goods are up to 4.5 times those of the unshocked baseline scenario
18 Preview of results I Even with the new sea routes to Asia, without American precious metals early modern Euro-Asian trade would have been negligible I Simulated dynamic general equilibrium model with calibrated transaction costs suggests that under the monetary injection European purchases of Asian goods are up to 4.5 times those of the unshocked baseline scenario I Most of the observed increase in Euro-Asian trade is explained by the monetary injections, as opposed to a fall in transportation costs
19 American treasure: arrivals to Europe Fine silver, tones Gold, tones Initial stock, Europe (1492) Imports to Europe Total imports Sources: Costa, Rocha and Sousa (2010), Hamilton (1970), Morineau (1985), Braudel and Spooner (1967), Velde and Weber (2000)
20 Model I Dynamic general equilibrium model
21 Model I Dynamic general equilibrium model I European representative agent
22 Model I Dynamic general equilibrium model I European representative agent I Asian representative agent
23 Model I Dynamic general equilibrium model I European representative agent I Asian representative agent I The only di erence is that only the European economy receives a monetary windfall
24 Model I Dynamic general equilibrium model I European representative agent I Asian representative agent I The only di erence is that only the European economy receives a monetary windfall I 2 agents, 2 consumption goods, and money
25 Model I European representative agent problem max cee,c ea,m et t=0 β t u (c eet, c eat, m e,t ) s.t. p 1t c eet + p 2t c eat (1 + b) + m e,t p 1t A e + m e,t 1 + d t.
26 Model I European representative agent problem max cee,c ea,m et t=0 β t u (c eet, c eat, m e,t ) s.t. p 1t c eet + p 2t c eat (1 + b) + m e,t p 1t A e + m e,t 1 + d t. I c eet : consumption in Europe of European goods
27 Model I European representative agent problem max cee,c ea,m et t=0 β t u (c eet, c eat, m e,t ) s.t. p 1t c eet + p 2t c eat (1 + b) + m e,t p 1t A e + m e,t 1 + d t. I c eet : consumption in Europe of European goods I c eat : consumption in Europe of Asian goods
28 Model I European representative agent problem max cee,c ea,m et t=0 β t u (c eet, c eat, m e,t ) s.t. p 1t c eet + p 2t c eat (1 + b) + m e,t p 1t A e + m e,t 1 + d t. I c eet : consumption in Europe of European goods I c eat : consumption in Europe of Asian goods I m e,t : precious metals
29 Model I European representative agent problem max cee,c ea,m et t=0 β t u (c eet, c eat, m e,t ) s.t. p 1t c eet + p 2t c eat (1 + b) + m e,t p 1t A e + m e,t 1 + d t. I c eet : consumption in Europe of European goods I c eat : consumption in Europe of Asian goods I m e,t : precious metals I b: iceberg cost
30 Model I European representative agent problem max cee,c ea,m et t=0 β t u (c eet, c eat, m e,t ) s.t. p 1t c eet + p 2t c eat (1 + b) + m e,t p 1t A e + m e,t 1 + d t. I c eet : consumption in Europe of European goods I c eat : consumption in Europe of Asian goods I m e,t : precious metals I b: iceberg cost I A e : production in Europe
31 Model I European representative agent problem max cee,c ea,m et t=0 β t u (c eet, c eat, m e,t ) s.t. p 1t c eet + p 2t c eat (1 + b) + m e,t p 1t A e + m e,t 1 + d t. I c eet : consumption in Europe of European goods I c eat : consumption in Europe of Asian goods I m e,t : precious metals I b: iceberg cost I A e : production in Europe I d t : discoveries of precious metals
32 Closing the system I Analogous problem for the Asian representative agent
33 Closing the system I Analogous problem for the Asian representative agent I Market clearing conditions L e c eet + L a c aet (1 + b) = L e A e L e c eat (1 + b) + L a c aat = L a A a L e m e,t + L a m a,t = L e m e,t 1 + L e d t + L a m a,t 1
34 Closing the system I Analogous problem for the Asian representative agent I Market clearing conditions L e c eet + L a c aet (1 + b) = L e A e L e c eat (1 + b) + L a c aat = L a A a L e m e,t + L a m a,t = L e m e,t 1 + L e d t + L a m a,t 1 I L e : population in Europe
35 Closing the system I Analogous problem for the Asian representative agent I Market clearing conditions L e c eet + L a c aet (1 + b) = L e A e L e c eat (1 + b) + L a c aat = L a A a L e m e,t + L a m a,t = L e m e,t 1 + L e d t + L a m a,t 1 I L e : population in Europe I L a : population in Asia
36 Functional forms u (c et, m et ) = where c et ac η et + (1 a) m η et 1 σ ω γ 1 γ 1 γ ceet + (1 ω) γ 1 c 1 σ η 1 γ 1 γ eat γ γ 1
37 Equilibrium p 1t A e + m e,t 1 + d t p 1t c eet p 2t c eat (1 + b) m e,t = 0 c eet c eat = ω 1 ω p2t (1 + b) p 1t γ (1 a) m η 1 et = ac η 1 et c et 1 c eet p 1t ac β η et+1 +(1 ac η et +(1 a)mη et+1 a)m η et 1 σ η η ac η 1 c et+1 1 et+1 c eet+1 p 1t+1
38 Calibration Parameter Value Calibrated structural parameters Discount factor β 0.98 Elasticity of Substitution Parameter σ 2 Elasticity of Substitution Parameter η Elasticity of Substitution γ 2 Home bias ω 0.86 Consumption weight a e 0.75 Population, Europe (millions) L E 74 Population, Asia (millions) L A 360 European Income A e Asian Income A a Estimated structural parameters Euro-Asian trade transct. cost (bf. the new rout) b i 10 Euro-Asian trade transct. cost (aft. the Discoveries) b f 8
39 Method 1. Find initial steady state
40 Method 1. Find initial steady state I Use data on per capita precious metals in Europe
41 Method 1. Find initial steady state I Use data on per capita precious metals in Europe 2. Find nal steady state
42 Method 1. Find initial steady state I Use data on per capita precious metals in Europe 2. Find nal steady state I Use data on accumulated discoveries of precious metals
43 Method 1. Find initial steady state I Use data on per capita precious metals in Europe 2. Find nal steady state I Use data on accumulated discoveries of precious metals 3. Calculate the transition with data on the discoveries from 1531 to 1790
44 Method 1. Find initial steady state I Use data on per capita precious metals in Europe 2. Find nal steady state I Use data on accumulated discoveries of precious metals 3. Calculate the transition with data on the discoveries from 1531 to 1790 I Decrease iceberg cost to simulate the discovery of the new route to Asia
45 Data 10 Discoveries
46 0 Results Europe Asia Prices of Consumption Goods
47 Results 70 Net Exports of Precious Metals from Europe (% of Discoveries) Figure: "China was the main and ultimate destination directly or through intermediaries of Spanish American silver since the sixteenth Net Exports of European Goods to Asia (Relative to Initial Steady State) century" 1 (Irigoin 2009) 0.9
48 Results 5 Consumption per Capita (Relative to Initial Steady State) c ee c ea c ae c aa
49 Results Net Exports of European Goods to Asia (Relative to Initial Steady State)
50 Results c ee c ea c ae c aa 4.5 European Net Imports of Asian Goods (Relative to Initial Steady State) b I = 10, b F = 8, 2 e =!0:02, 2 a =!0:02,. e = 2:00,. a = 2:00
51 Results 5 Consumption per Capita (Relative to Initial Steady State) New Route, with Discoveries of Precious Metals New Route, without Discoveries of Precious Metals c ea c ae c ae c ea
52 Results c ea c ae c ae c ea 4.5 European Net Imports of Asian Goods (Relative to Initial Steady State) New Route, with Discoveries of Precious Metals New Route, without Discoveries of Precious Metals b I = 10, b F = 8, 2 e =!0:02, 2 a =!0:02,. e = 2:00,. a = 2:00
53 Our simulation matches the empirical facts I Intercontinental trade is only a small fraction of total output
54 Our simulation matches the empirical facts I Intercontinental trade is only a small fraction of total output I Imports of Asian goods in Europe are higher than imports of European goods in Asia
55 Our simulation matches the empirical facts I Intercontinental trade is only a small fraction of total output I Imports of Asian goods in Europe are higher than imports of European goods in Asia I European agents have higher equilibrium consumption levels, but not much higher
56 Our simulation matches the empirical facts I Intercontinental trade is only a small fraction of total output I Imports of Asian goods in Europe are higher than imports of European goods in Asia I European agents have higher equilibrium consumption levels, but not much higher I Equilibrium nominal price is higher in Europe
57 Our simulation matches the empirical facts I Intercontinental trade is only a small fraction of total output I Imports of Asian goods in Europe are higher than imports of European goods in Asia I European agents have higher equilibrium consumption levels, but not much higher I Equilibrium nominal price is higher in Europe I We hence explain the "standards of living debate" puzzle of early modern economic history which asks why were both nominal wages and prices higher in Europe (Allen 2005)
58 We provide an economic explanation I Historians traditional explanations have relied on cultural factors:
59 We provide an economic explanation I Historians traditional explanations have relied on cultural factors: I "For some inexplicable reason Orientals have always had a penchant for hoarding treasure" (Hamilton 1929, p. 347)
60 We provide an economic explanation I Historians traditional explanations have relied on cultural factors: I I "For some inexplicable reason Orientals have always had a penchant for hoarding treasure" (Hamilton 1929, p. 347) "Spanish plunder was mainly in the form of precious metals. These were very important in nancing European trade with Asians, who were not very interested in buying European products" Maddison (2007, p.312)
61 We provide an economic explanation I Historians traditional explanations have relied on cultural factors: I I "For some inexplicable reason Orientals have always had a penchant for hoarding treasure" (Hamilton 1929, p. 347) "Spanish plunder was mainly in the form of precious metals. These were very important in nancing European trade with Asians, who were not very interested in buying European products" Maddison (2007, p.312) I Instead, our explanation emerges as a consequence of rational agents taking decisions in a dynamic, GE context
62 Conclusions I American precious metals were the major driving impulse behind early modern Euro-Asian trade
63 Conclusions I American precious metals were the major driving impulse behind early modern Euro-Asian trade I Contribution to the great divergence debate
64 Conclusions I American precious metals were the major driving impulse behind early modern Euro-Asian trade I Contribution to the great divergence debate I Contribution to the early modern standards of living debate
65 Conclusions I American precious metals were the major driving impulse behind early modern Euro-Asian trade I Contribution to the great divergence debate I Contribution to the early modern standards of living debate I Contribution to the European industrious revolution literature
Global Value Chain Participation and Current Account Imbalances
Global Value Chain Participation and Current Account Imbalances Johannes Brumm University of Zurich Georgios Georgiadis European Central Bank Johannes Gräb European Central Bank Fabian Trottner Princeton
More informationI CAN STATEMENTS 6TH GRADE SOCIAL STUDIES
6TH GRADE SOCIAL STUDIES I can compare historical issues involving rights, roles and statues of individuals. I can describe the relationships among specialization, division of labor, productivity of workers
More informationTHEORIES OF GLOBAL INTERCONNECTIONS. APWH Unit 6 Part to Present
THEORIES OF GLOBAL INTERCONNECTIONS APWH Unit 6 Part 4 1900 to Present Myth of Isolation Truly isolated cultures have never existed 1000s of years, human groups have been in contact with each other (ex.
More informationLecture 4 The Centralized Economy: Extensions
Lecture 4 The Centralized Economy: Extensions Leopold von Thadden University of Mainz and ECB (on leave) Advanced Macroeconomics, Winter Term 2013 1 / 36 I Motivation This Lecture considers some applications
More information1. Money in the utility function (start)
Monetary Economics: Macro Aspects, 1/3 2012 Henrik Jensen Department of Economics University of Copenhagen 1. Money in the utility function (start) a. The basic money-in-the-utility function model b. Optimal
More informationGeneral Examination in Macroeconomic Theory SPRING 2013
HARVARD UNIVERSITY DEPARTMENT OF ECONOMICS General Examination in Macroeconomic Theory SPRING 203 You have FOUR hours. Answer all questions Part A (Prof. Laibson): 48 minutes Part B (Prof. Aghion): 48
More informationThe Geography of Development: Evaluating Migration Restrictions and Coastal Flooding
The Geography of Development: Evaluating Migration Restrictions and Coastal Flooding Klaus Desmet SMU Dávid Krisztián Nagy Princeton University Esteban Rossi-Hansberg Princeton University World Bank, February
More informationFinancial Factors in Economic Fluctuations. Lawrence Christiano Roberto Motto Massimo Rostagno
Financial Factors in Economic Fluctuations Lawrence Christiano Roberto Motto Massimo Rostagno Background Much progress made on constructing and estimating models that fit quarterly data well (Smets-Wouters,
More informationModern Urban and Regional Economics
Modern Urban and Regional Economics SECOND EDITION Philip McCann OXFORD UNIVERSITY PRESS Contents List of figures List of tables Introduction xii xiv xvii Part I Urban and Regional Economic Models and
More informationMoney, Barter, and Hyperinflation. Kao, Yi-Cheng Department of Business Administration, Chung Yuan Christian University
Money, Barter, and Hyperinflation Kao, Yi-Cheng Department of Business Administration, Chung Yuan Christian University 1 Outline Motivation The Model Discussion Extension Conclusion 2 Motivation 3 Economist
More informationThe Lucas Imperfect Information Model
The Lucas Imperfect Information Model Based on the work of Lucas (972) and Phelps (970), the imperfect information model represents an important milestone in modern economics. The essential idea of the
More informationProposed AKS for 6 th Grade Social Studies
Proposed AKS for 6 th Grade Social Studies A. Map and Globe Skills 1. use cardinal directions 2. use intermediate directions 3. use a letter/number grid system to determine location 4. compare and contrast
More informationDynamic Optimization: An Introduction
Dynamic Optimization An Introduction M. C. Sunny Wong University of San Francisco University of Houston, June 20, 2014 Outline 1 Background What is Optimization? EITM: The Importance of Optimization 2
More informationAgricultural Productivity, Comparative Advantage, and Economic Growth Kiminori Matsuyama
Agricultural Productivity,, and Economic Growth Kiminori Krishna Teja Indian Statistical Institute April 12, 2016 This paper falls under the broad topic of Structural Transformation Overview 1 2 3 4 This
More informationDepartment of Agricultural and Resource Economics ARE 251/Econ 270A, Fall Household Models
Department of Agricultural and Resource Economics ARE 251/Econ 270A, Fall 2006 Department of Economics Elisabeth Sadoulet University of California at Berkeley Household Models I. The Basic Separable Household
More information(a) Write down the Hamilton-Jacobi-Bellman (HJB) Equation in the dynamic programming
1. Government Purchases and Endogenous Growth Consider the following endogenous growth model with government purchases (G) in continuous time. Government purchases enhance production, and the production
More informationA Correlation of Prentice Hall World History The Modern Era 2014
A Correlation of Prentice Hall World History The Modern Era 2014 To the College, Career, & Civic Life (C3) Framework for Social Studies State Standards Dimension 2 Disciplinary Indicators Introduction
More informationRegional Integration in Central Asia
Dr. Sebastian Krapohl Assistant Professor of International Relations Regional Integration in Central Asia In Search for an Explanation of Failing Regionalism The Empirical Puzzle The five Central Asian
More informationA Correlation of. Ohio s Learning Standards in Social Studies. Grade 5
A Correlation of 2019 To in Social Studies Grade 5 Introduction The all new myworld Interactive Social Studies encourages students to explore their world, expand their thinking, and engage their college,
More informationFinal Exam. You may not use calculators, notes, or aids of any kind.
Professor Christiano Economics 311, Winter 2005 Final Exam IMPORTANT: read the following notes You may not use calculators, notes, or aids of any kind. A total of 100 points is possible, with the distribution
More informationAn Empirical Analysis of RMB Exchange Rate changes impact on PPI of China
2nd International Conference on Economics, Management Engineering and Education Technology (ICEMEET 206) An Empirical Analysis of RMB Exchange Rate changes impact on PPI of China Chao Li, a and Yonghua
More informationChapter 2 - Lessons 1 & 2 Studying Geography, Economics
Chapter 2 - Lessons 1 & 2 Studying Geography, Economics How does geography influence the way people live? Why do people trade? Why do people form governments? Lesson 1 - How Does Geography Influence the
More informationDublin City Schools Social Studies Graded Course of Study Grade 5 K-12 Social Studies Vision
K-12 Social Studies Vision The Dublin City Schools K-12 Social Studies Education will provide many learning opportunities that will help students to: develop thinking as educated citizens who seek to understand
More informationRBC Model with Indivisible Labor. Advanced Macroeconomic Theory
RBC Model with Indivisible Labor Advanced Macroeconomic Theory 1 Last Class What are business cycles? Using HP- lter to decompose data into trend and cyclical components Business cycle facts Standard RBC
More informationImportant Developments in International Coke Markets
Important Developments in International Coke Markets Andrew Jones Resource-Net South Africa China Coke Market Congress Xuzhou, Jiangsu September 2018 Introduction to Presentation Resource-Net produces
More informationExplaining the Effects of Government Spending Shocks on Consumption and the Real Exchange Rate. M. Ravn S. Schmitt-Grohé M. Uribe.
Explaining the Effects of Government Spending Shocks on Consumption and the Real Exchange Rate M. Ravn S. Schmitt-Grohé M. Uribe November 2, 27 Effects of Government Spending Shocks: SVAR Evidence A rise
More informationEstimating the effect of exchange rate changes on total exports
Estimating the effect of exchange rate changes on total exports Thierry Mayer (Science Po) and Walter Steingress (Banque de France) 12th CompNet Conference Prague 2016 Motivation Real Effective Exchange
More informationMARS AREA SCHOOL DISTRICT CURRICULUM GRADE: Grade 4
MARS AREA SCHOOL DISTRICT CURRICULUM GRADE: Grade 4 Course Title: Social Studies Brief Description Overview: Students will explore the history, geography, government, and economy of the United States with
More informationChapter 4. Explanation of the Model. Satoru Kumagai Inter-disciplinary Studies, IDE-JETRO, Japan
Chapter 4 Explanation of the Model Satoru Kumagai Inter-disciplinary Studies, IDE-JETRO, Japan Toshitaka Gokan Inter-disciplinary Studies, IDE-JETRO, Japan Ikumo Isono Bangkok Research Center, IDE-JETRO,
More informationEconomics Discussion Paper Series EDP Measuring monetary policy deviations from the Taylor rule
Economics Discussion Paper Series EDP-1803 Measuring monetary policy deviations from the Taylor rule João Madeira Nuno Palma February 2018 Economics School of Social Sciences The University of Manchester
More informationSocial Studies Curriculum Sixth Grade
Social Studies Curriculum Sixth Grade A. History Students will examine the key historic movements, events, and figures that contributed to the development of modern Europe and American nations from early
More informationSocial Studies Continuum
Historical Skills chronological thinking understand that we can learn about the past from different sorts of evidence begin to use historical resources apply research skills by investigating a topic in
More information"0". Doing the stuff on SVARs from the February 28 slides
Monetary Policy, 7/3 2018 Henrik Jensen Department of Economics University of Copenhagen "0". Doing the stuff on SVARs from the February 28 slides 1. Money in the utility function (start) a. The basic
More informationStillwater Area Schools Curriculum Guide for Elementary Social Studies
Stillwater Area Schools Curriculum Guide for Elementary Social Studies Grade Four Draft March 21, 2006 Minnesota and the St. Croix Valley I. Historical Skills A. The student will acquire skills of chronological
More informationTheoretical premises of the Keynesian approach
origin of Keynesian approach to Growth can be traced back to an article written after the General Theory (1936) Roy Harrod, An Essay in Dynamic Theory, Economic Journal, 1939 Theoretical premises of the
More informationEconomic Growth: Lecture 8, Overlapping Generations
14.452 Economic Growth: Lecture 8, Overlapping Generations Daron Acemoglu MIT November 20, 2018 Daron Acemoglu (MIT) Economic Growth Lecture 8 November 20, 2018 1 / 46 Growth with Overlapping Generations
More informationAdvanced Economic Growth: Lecture 8, Technology Di usion, Trade and Interdependencies: Di usion of Technology
Advanced Economic Growth: Lecture 8, Technology Di usion, Trade and Interdependencies: Di usion of Technology Daron Acemoglu MIT October 3, 2007 Daron Acemoglu (MIT) Advanced Growth Lecture 8 October 3,
More informationBusiness Cycles: The Classical Approach
San Francisco State University ECON 302 Business Cycles: The Classical Approach Introduction Michael Bar Recall from the introduction that the output per capita in the U.S. is groing steady, but there
More informationGRADE 5 SOCIAL STUDIES SOCIAL STUDIES APPLICATION. SOCIAL STUDIES STANDARDS for Grade 5
GRADE 5 SOCIAL STUDIES The Archdiocese of Cincinnati has established the following Social Studies standards based on the most current teachings which are aligned to Ohio New Learning Social Studies Standards.
More informationSolutions to Problem Set 4 Macro II (14.452)
Solutions to Problem Set 4 Macro II (14.452) Francisco A. Gallego 05/11 1 Money as a Factor of Production (Dornbusch and Frenkel, 1973) The shortcut used by Dornbusch and Frenkel to introduce money in
More informationAP Human Geography Free-response Questions
AP Human Geography Free-response Questions 2000-2010 2000-preliminary test 1. A student concludes from maps of world languages and religions that Western Europe has greater cultural diversity than the
More informationCentral Valley School District Social Studies Curriculum Map Grade 7. August - September
August - September Geographical/Historical Skills Identify and analyze timelines. Construct and use cause and effect charts. Differentiate between fact and opinion. Use of word webs, flip charts, outlines
More informationPrentice Hall World Cultures: A Global Mosaic 2004 Correlated to: Wisconsin Model Academic Standards for Social Studies (By the end of Grade 12)
Wisconsin Model Academic Standards for Social Studies (By the end of Grade 12) A. Geography: People, Places, and Environments A.12.1 Use various types of atlases and appropriate vocabulary to describe
More informationSession 4: Money. Jean Imbs. November 2010
Session 4: Jean November 2010 I So far, focused on real economy. Real quantities consumed, produced, invested. No money, no nominal in uences. I Now, introduce nominal dimension in the economy. First and
More informationproblem. max Both k (0) and h (0) are given at time 0. (a) Write down the Hamilton-Jacobi-Bellman (HJB) Equation in the dynamic programming
1. Endogenous Growth with Human Capital Consider the following endogenous growth model with both physical capital (k (t)) and human capital (h (t)) in continuous time. The representative household solves
More informationA Modern Equilibrium Model. Jesús Fernández-Villaverde University of Pennsylvania
A Modern Equilibrium Model Jesús Fernández-Villaverde University of Pennsylvania 1 Household Problem Preferences: max E X β t t=0 c 1 σ t 1 σ ψ l1+γ t 1+γ Budget constraint: c t + k t+1 = w t l t + r t
More informationPart A: Answer question A1 (required), plus either question A2 or A3.
Ph.D. Core Exam -- Macroeconomics 5 January 2015 -- 8:00 am to 3:00 pm Part A: Answer question A1 (required), plus either question A2 or A3. A1 (required): Ending Quantitative Easing Now that the U.S.
More informationLecture 9: The monetary theory of the exchange rate
Lecture 9: The monetary theory of the exchange rate Open Economy Macroeconomics, Fall 2006 Ida Wolden Bache October 24, 2006 Macroeconomic models of exchange rate determination Useful reference: Chapter
More informationEconomic Growth: Lecture 7, Overlapping Generations
14.452 Economic Growth: Lecture 7, Overlapping Generations Daron Acemoglu MIT November 17, 2009. Daron Acemoglu (MIT) Economic Growth Lecture 7 November 17, 2009. 1 / 54 Growth with Overlapping Generations
More informationPricing To Habits and the Law of One Price
Pricing To Habits and the Law of One Price Morten Ravn 1 Stephanie Schmitt-Grohé 2 Martin Uribe 2 1 European University Institute 2 Duke University Izmir, May 18, 27 Stylized facts we wish to address Pricing-to-Market:
More informationToulouse School of Economics, L3 Macroeconomics 1 Professors Chaney & Portier. Exam
Toulouse School of Economics, 2014-2015 L3 Macroeconomics 1 Professors Chaney & Portier Put the barcode here Exam Instructions: This is a 2h30 hours exam. BE SURE TO PUT THE STICKER ON THE EXAM. There
More informationHelsinki: August 2006
Helsinki: August 2006 International Congress of Historical Sciences, Sydney, July 2005 International History Associatio Settler Economies in World History Part A, General Conceptual Themes usan B. Carter
More information1 SE = Student Edition - TE = Teacher Edition - TR = Teaching Resources - TECH = Technology
STATE GOAL 14: Understand political systems, with an emphasis on the United States. Why This Goal Is Important: The existence and advancement of a free society depend on the knowledge, skills and understanding
More informationNorwich City Schools Social Studies 6
Social Studies 6 Topic: Maps and Globes and Graphs and Time Transferable Concepts: change 3: Geography Geography Geographers use maps, globes, and graphs to study the Earth and everything on it. Types
More informationCompetitive Equilibrium
Competitive Equilibrium Econ 2100 Fall 2017 Lecture 16, October 26 Outline 1 Pareto Effi ciency 2 The Core 3 Planner s Problem(s) 4 Competitive (Walrasian) Equilibrium Decentralized vs. Centralized Economic
More informationECON 5118 Macroeconomic Theory
ECON 5118 Macroeconomic Theory Winter 013 Test 1 February 1, 013 Answer ALL Questions Time Allowed: 1 hour 0 min Attention: Please write your answers on the answer book provided Use the right-side pages
More informationLOUISIANA STUDENT STANDARDS FOR SOCIAL STUDIES THAT CORRELATE WITH A FIELD TRIP TO DESTREHAN PLANTATION KINDERGARTEN
LOUISIANA STUDENT STANDARDS FOR SOCIAL STUDIES THAT CORRELATE WITH A FIELD TRIP TO DESTREHAN PLANTATION KINDERGARTEN Standard 2 Historical Thinking Skills Students distinguish between events, people, and
More informationEconomic Growth: Lecture 9, Neoclassical Endogenous Growth
14.452 Economic Growth: Lecture 9, Neoclassical Endogenous Growth Daron Acemoglu MIT November 28, 2017. Daron Acemoglu (MIT) Economic Growth Lecture 9 November 28, 2017. 1 / 41 First-Generation Models
More informationEconomics 312: Urban Land Economics University of Victoria Midterm Examination #1 VERSION 1 SOLUTIONS Spring 2018 Instructor: Martin Farnham
Economics 312: Urban Land Economics University of Victoria Midterm Examination #1 VERSION 1 SOLUTIONS Spring 2018 Instructor: Martin Farnham Midterm Exam #1 Section 1: Multiple Choice (2 points each) Unless
More informationPeoples, Places and Cultures in Africa, Asia and the Southwest Pacific
GRADE 7 Peoples, Places and Cultures in Africa, Asia and the Southwest Pacific Course 0470-07 Students in seventh grade explore the history, geography, government, economic systems, current issues, and
More informationTourism Specialization and Economic Development: Evidence from the UNESCO World Heritage List (joint with Reda Cherif and John Piotrowski)
Tourism Specialization and Economic Development: Evidence from the UNESCO World Heritage List (joint with Reda Cherif and John Piotrowski) BBL sponsored by the Cultural Heritage and Sustainable Tourism
More informationTrade and Direct Investment across the Taiwan Strait
Trade and Direct Investment across the Taiwan Strait - An Empirical Analysis of Taiwan and China s Accession into the WTO Ji Chou Chung-Hua Institution for Economic Research Shiu-Tung Wang National Taiwan
More informationFoundations of Modern Macroeconomics B. J. Heijdra & F. van der Ploeg Chapter 2: Dynamics in Aggregate Demand and Supply
Foundations of Modern Macroeconomics: Chapter 2 1 Foundations of Modern Macroeconomics B. J. Heijdra & F. van der Ploeg Chapter 2: Dynamics in Aggregate Demand and Supply Foundations of Modern Macroeconomics:
More informationLecture 3: Growth with Overlapping Generations (Acemoglu 2009, Chapter 9, adapted from Zilibotti)
Lecture 3: Growth with Overlapping Generations (Acemoglu 2009, Chapter 9, adapted from Zilibotti) Kjetil Storesletten September 5, 2014 Kjetil Storesletten () Lecture 3 September 5, 2014 1 / 56 Growth
More informationSimple New Keynesian Model without Capital
Simple New Keynesian Model without Capital Lawrence J. Christiano January 5, 2018 Objective Review the foundations of the basic New Keynesian model without capital. Clarify the role of money supply/demand.
More informationBehavioral Economics. Lecture 10
14.127 Behavioral Economics. Lecture 10 Xavier Gabaix April 15, 2004 1 Hyperbolic discounting Luttmer and Mariotti (JPE 2003) hyperbolics does not make much difference/improvement over exponential discounting.
More informationDevelopment Economics Unified Growth Theory: From Stagnation to Growth
Development Economics Unified Growth Theory: From Stagnation to Growth Andreas Schäfer University of Leipzig Institute of Theoretical Economics WS 10/11 Andreas Schäfer (University of Leipzig) Unified
More informationDemand Shocks, Monetary Policy, and the Optimal Use of Dispersed Information
Demand Shocks, Monetary Policy, and the Optimal Use of Dispersed Information Guido Lorenzoni (MIT) WEL-MIT-Central Banks, December 2006 Motivation Central bank observes an increase in spending Is it driven
More information1 The Basic RBC Model
IHS 2016, Macroeconomics III Michael Reiter Ch. 1: Notes on RBC Model 1 1 The Basic RBC Model 1.1 Description of Model Variables y z k L c I w r output level of technology (exogenous) capital at end of
More informationWhat Thermodynamics can teach us about Economy : theory and practice
What Thermodynamics can teach us about Economy : theory and practice Christophe Goupil, Éric Herbert, Yves D'Angelo, Aurélie-Louis Napoléon, Gael Giraud École des Houches Science & Énergie mars 2018 eric.herbert@univ-paris-diderot.fr
More informationLearning, Expectations, and Endogenous Business Cycles
Learning, Expectations, and Endogenous Business Cycles I.S.E.O. Summer School June 19, 2013 Introduction A simple model Simulations Stability Monetary Policy What s next Who we are Two students writing
More informationh Edition Money in Search Equilibrium
In the Name of God Sharif University of Technology Graduate School of Management and Economics Money in Search Equilibrium Diamond (1984) Navid Raeesi Spring 2014 Page 1 Introduction: Markets with Search
More informationRamsey Cass Koopmans Model (1): Setup of the Model and Competitive Equilibrium Path
Ramsey Cass Koopmans Model (1): Setup of the Model and Competitive Equilibrium Path Ryoji Ohdoi Dept. of Industrial Engineering and Economics, Tokyo Tech This lecture note is mainly based on Ch. 8 of Acemoglu
More informationTo explore the timing of the development of these elements in five waves of globalization
SEMESTER AT SEA COURSE SYLLABUS Discipline: Economics Semester and Year: Fall 2012 SEMS 2500-101: The Economic History of Globalization Division: Lower Faculty Name: Colin White Suggested Pre-requisites:
More informationName three countries in Europe.
Name three countries in Europe. I will be able to identify the 5 themes of geography for Europe and locate the countries and capitals of Europe and the major physical features. People: Past: Through the
More informationSimple New Keynesian Model without Capital
Simple New Keynesian Model without Capital Lawrence J. Christiano March, 28 Objective Review the foundations of the basic New Keynesian model without capital. Clarify the role of money supply/demand. Derive
More informationImpact Analysis of Economic Linkages of South Korea with North Korea Using a CGE Model (draft version)
Comments Only Impact Analysis of Economic Linkages of South Korea with North Korea Using a CGE Model (draft version) Euijune Kim Professor, Department of Agricultural Economics and Rural Development and
More informationEcon 5110 Solutions to the Practice Questions for the Midterm Exam
Econ 50 Solutions to the Practice Questions for the Midterm Exam Spring 202 Real Business Cycle Theory. Consider a simple neoclassical growth model (notation similar to class) where all agents are identical
More informationSocial Studies Framework K-12 ( ) 1
RIVERVIEW SCHOOL DISTRICT NO. 407 STRAND CIVICS (GOVERNMENT) ECONOMICS HISTORY GEOGRAPHY Grade K Me & My Community Working together Purpose of rules Being a community contributor Compare/contrast needs
More informationThe Small-Open-Economy Real Business Cycle Model
The Small-Open-Economy Real Business Cycle Model Comments Some Empirical Regularities Variable Canadian Data σ xt ρ xt,x t ρ xt,gdp t y 2.8.6 c 2.5.7.59 i 9.8.3.64 h 2.54.8 tb y.9.66 -.3 Source: Mendoza
More informationMarkov Perfect Equilibria in the Ramsey Model
Markov Perfect Equilibria in the Ramsey Model Paul Pichler and Gerhard Sorger This Version: February 2006 Abstract We study the Ramsey (1928) model under the assumption that households act strategically.
More informationV. The Speed of adjustment of Endogenous Variables and Overshooting
V. The Speed of adjustment of Endogenous Variables and Overshooting The second section of Chapter 11 of Dornbusch (1980) draws on Dornbusch (1976) Expectations and Exchange Rate Dynamics, Journal of Political
More informationGetting to page 31 in Galí (2008)
Getting to page 31 in Galí 2008) H J Department of Economics University of Copenhagen December 4 2012 Abstract This note shows in detail how to compute the solutions for output inflation and the nominal
More informationChapter 12. Key Issue Three: Why do business services locate in large settlements?
Chapter 12 Key Issue Three: Why do business services locate in large settlements? Business Services and Settlements World cities Ancient world cities Medieval world cities Modern world cities Hierarchy
More informationGrade 5: Social Studies Practices
Grade 5: Social Studies Practices A. Gathering and Using Evidence 1. Develop questions to help identify evidence about topics related to the historical events occurring in the Western Hemisphere that can
More informationGRADE 8 LEAP SOCIAL STUDIES ASSESSMENT STRUCTURE. Grade 8 Social Studies Assessment Structure
Grade 8 Social Studies Assessment Structure 1 In 2013-2014, the grade 8 LEAP test continues to assess Louisiana s social studies benchmarks. The design of the multiple-choice sessions of the test remains
More informationAssignment #5. 1 Keynesian Cross. Econ 302: Intermediate Macroeconomics. December 2, 2009
Assignment #5 Econ 0: Intermediate Macroeconomics December, 009 Keynesian Cross Consider a closed economy. Consumption function: C = C + M C(Y T ) () In addition, suppose that planned investment expenditure
More informationGACE Middle Grades Social Science Assessment Test at a Glance
GACE Middle Grades Social Science Assessment Test at a Glance Updated June 2017 See the GACE Middle Grades Social Science Assessment Study Companion for practice questions and preparation resources. Assessment
More informationStudy Guide Unit 6 Economics and Development
Name Period Study Guide Unit 6 Economics and Development When you are asked to sketch maps, please put a key so that you can remember what the colors mean! Chapter 9: Development How does the author introduce
More informationUNIT PLAN. Big Idea/Theme: In the seventeenth and eighteenth centuries, European expansion impacted societies worldwide.
UNIT PLAN Grade Level: Unit # 1 Unit Name: Colonial Expansion 7 th Big Idea/Theme: In the seventeenth and eighteenth centuries, European expansion impacted societies worldwide. Culminating Assessment:
More informationCombining Macroeconomic Models for Prediction
Combining Macroeconomic Models for Prediction John Geweke University of Technology Sydney 15th Australasian Macro Workshop April 8, 2010 Outline 1 Optimal prediction pools 2 Models and data 3 Optimal pools
More informationECON 581: Growth with Overlapping Generations. Instructor: Dmytro Hryshko
ECON 581: Growth with Overlapping Generations Instructor: Dmytro Hryshko Readings Acemoglu, Chapter 9. Motivation Neoclassical growth model relies on the representative household. OLG models allow for
More informationGrade 7 Social Studies
Standard 1: History Students will examine the major movements, events, and figures that contributed to the development of nations in modern Africa, Asia, and the Southwest Pacific from acient civilizations
More informationOnline Appendix for Investment Hangover and the Great Recession
ONLINE APPENDIX INVESTMENT HANGOVER A1 Online Appendix for Investment Hangover and the Great Recession By MATTHEW ROGNLIE, ANDREI SHLEIFER, AND ALP SIMSEK APPENDIX A: CALIBRATION This appendix describes
More informationComprehensive Exam. Macro Spring 2014 Retake. August 22, 2014
Comprehensive Exam Macro Spring 2014 Retake August 22, 2014 You have a total of 180 minutes to complete the exam. If a question seems ambiguous, state why, sharpen it up and answer the sharpened-up question.
More informationAdvanced Macroeconomics
Advanced Macroeconomics The Ramsey Model Marcin Kolasa Warsaw School of Economics Marcin Kolasa (WSE) Ad. Macro - Ramsey model 1 / 30 Introduction Authors: Frank Ramsey (1928), David Cass (1965) and Tjalling
More informationCotton Economics Research Institute CERI Outlook Report
2006 Global Cotton Outlook Cotton Economics Research Institute CERI Outlook Report 06-02 www.ceri.ttu.edu/policy CERI (Policy Modeling Group) Samarendu Mohanty, Associate Professor Suwen Pan, Research
More informationTourism Specialization and Economic Development: Evidence from the UNESCO World Heritage List (joint with Reda
Tourism Specialization and Economic Development: Evidence from the UNESCO World Heritage List (joint with Reda Cherif and John Piotrowski) 13th Annual US/ICOMOS International Symposium, May 21, 2010 Washington
More informationFourth Grade Social Studies Crosswalk
Fourth Grade Social Studies Crosswalk This crosswalk document compares the 2010 K-12 Social Studies Essential Standards and the 2006 North Carolina Social Studies Standard Course of Study (SCOS) and provides
More informationOptimal Simple And Implementable Monetary and Fiscal Rules
Optimal Simple And Implementable Monetary and Fiscal Rules Stephanie Schmitt-Grohé Martín Uribe Duke University September 2007 1 Welfare-Based Policy Evaluation: Related Literature (ex: Rotemberg and Woodford,
More information