Lista de Exercícios - Modelos RBC e Novos Keynesianos

Lista 10 Modelos RBC e Novos Keynesianos 1 About the Solow residual answer the following a Explain in words its concept b Use the production function to derive an equation for the Solow residual c Are there any problems with using the Solow residual as a proxy for technology shocks in the RBC model 2 Use a diagram as per Fig 164 to explain the movements of the labour supply and demand curves after a negative technology shock What might constitute a negative technology shock 3 Write out the equations for the adaptive expectations and New Keynesian Phillips curves and use them to answer the following a What are the main differences between the two b Explain the costs associated with disinflations 4 This question requires using the 3equation and New Keynesian models to analyze the adjustment of the economy after a negative demand shock Assume the economy is initially in equilibrium and the negative output gap lasts for a set amount of time a Draw the impulse response functions for inflation and the output gap for each model as per Fig 166 b Explain why the paths of inflation are different in each model c How would the adjustment path change for the 3equation model if a proportion of households exhibit permanent income behavior and have rational expectations Problems and questions for discussion1 1 1 This question focuses on the predictions of the 3equation and NK models and how they compare to the realworld data Use Section 163 and your own analysis to answer the following questions a What do the two models predict should have happened to inflation during the global financial crisis ie a large negative output gap that is expected to persist for a number of periods b Choose two OECD economies and use the OECDStat website to download inflation data from 2006 to the end of 2011 Plot this data on a graph Describe the path of inflation for each of these economies over the period c Does the data more closely match the predictions of the 3equation model or the NK model Are there significant differences across the two countries d What other factors might have influenced the path of inflation in these countries over this period 2 Macroeconomic policy is about controlling the economy in the sense of keeping it close to the constant inflation equilibrium Read the following statement and answer the accompanying questions when thinking of controlling a classroom full of children one would probably think it wise to base classroom rules on the actual behavior of children rather than on how they would behave if they solved a forwardlooking problem a Does the line of reasoning in the statement have any implications for the RBC and NK DSGE models Hint think about the assumptions behind the models b Are there any insights from the microeconomic literature on behavioral economics that would suggest that the RBC and NK DSGE models place too much weight on agents solving complicated problems forward over distant time horizons Hint a useful starting point is the work of Nobel Prize winners Daniel Kahnemann and Amos Tversky interna interna