tailieunhanh - .Neoclassical Growth Model and Ricardian EquivalenceContentsContents1. 2. 3. 4. 5. Introduction

This note presents the neoclassical growth model in discrete time. The model is based on microfoundations, which means that the objectives of the economic agents are formulated explicitly, and that their behavior is derived by assuming that they always try to achieve their objectives as well as they can: employment and investment decisions by the firms are derived by assuming that firms maximize profits; consumption and saving decisions by the households are derived by assuming that households maximize their utility | bookbooncom The Neoclassical Growth Model and Ricardian Equivalence Koen Vermeylen Download free books at bookboqncom Neoclassical Growth Model and Ricardian Equivalence Contents Contents 1. Introduction 3 2. The neoclassical growth model 4 3. The steady state 9 4. Ricardian equivalence 11 5. Conclusions 12 Appendix A 13 A1. The maximization problem of the representative firm 13 A2. The equilibrium value of the representative firm 15 A3. The goverment s intertemporal budget constraint 15 A4. The representative household s intertemporal budget constraint 16 A5. The maximization problem of the representative household 18 A6. The consumption level of the representative household 18 Appendix B 19 References 21 Please click the advert The next step for top-performing graduates Masters in Management Designed for high-achieving graduates across all disciplines London Business School s Masters in Management provides specific and tangible foundations for a successful career in business. London Business School This 12-month full-time programme is a business qualification with impact. In 2010 our MiM employment rate was 95 within 3 months of graduation the majority of graduates choosing to work in consulting or financial services. As well as a renowned qualification from a world-class business school you also gain access to the School s network of more than 34 000 global alumni - a community that offers support and opportunities throughout your career. For more information visit mm email mim@ or give us a call on 44 0 20 7000 7573. Figures taken from London Business School s Masters in Management 2010 employment report Download free ebooks at 2 Neoclassical Growth Model and Ricardian Equivalence Introduction 1. Introduction This note presents the neoclassical growth model in discrete time. The model is based on microfoundations which means that the objectives of the economic agents are formulated explicitly and that their behavior is .