文档介绍：Chapter 12
Basics of Dynamic Model
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Topics to be Discussed
Basic principles of building macroeconomic model
Micro basis of macroeconomics
Choices of households
Choices of firms
Introduction to labor market
Basic Principles of Building Macroeconomic Model
Static economics
Static analysis: exogenous variables+parameters==>endogenous parative static parative static analysis:exogenous variables==>endogenous variables
Dynamic economics
Dynamic analysis: endogenous variables
Dynamic model in microeconomics
Consider variables’ time sequence and the time and process needed for variables adjustment
Cobweb theory
Basic Principles of Building Macroeconomic Model
Dynamic model in macroeconomics
e-expenditure model
Basic Principles of Building Macroeconomic Model
yt=ct+It
ct=a+byt-1
yt -byt-1 =It+a
Basic Principles of Building Macroeconomic Model
Macroeconomic model is a highly abstract description to the real economy. Throughout the model-building process, it’s very important to grasp the primary determinants (variables) and ignore the secondary ones.
As to the same economic phenomenon,there can be different conclusions drawn from different models.
Is there a consistent standard to assess models?
Basic Principles of Building Macroeconomic Model
Basic principles of building macroeconomic model
Empirical data test
patibility
Basic Principles of Building Macroeconomic Model
Basic principles of building macroeconomic model
Empirical data test
Economic data are objective record for the real economic operation
Econometricians test theory models with varieties of mathematical or statistical methods to show to what extent these models are consistent with the real world, and predict quantitatively economic growth in future.
Basic Principles of Building Macroeconomic Model
Example :
GDP Time Series
Implications :output of this year is influenced by outputs of past years.