In our discussion of consumption, we analyzed the problem of an optimizing household that takes the real interest rate as given. In this set of notes we endogenize the real interest rate. In particular, the real interest rate serves as a price that clears markets, and will play a central role in a more sophisticated model of the economy. We endogenize the real interest rate here in a particular...

This dissertation consists of three essays which investigate the economic implications of monetary and fiscal policies on the macroeconomy. The first essay focuses on the following question: how can we explain the observed behavior of aggregate inflation in response to e.g. monetary policy changes? Mankiw and Reis (2002) have proposed sticky information as an alternative to Calvo sticky prices ...

This thesis examines questions in macroeconomics motivated by the 2007-2008 financial crisis and its aftermath. Chapter 1 studies the impact of a housing bust on regional labor reallocation and the labor market. I document an empirical fact, which suggests that, by increasing the fraction of households with negative housing equity, a housing bust hinders interregional mobility. I then study a m...

This paper reviews the main studies on entrepreneurship conducted during the past two decades that are relevant for the understanding of various macroeconomic issues. I organize the discussion by distinguishing three groups of contributions. The first group includes studies whose main purpose is to understand the factors that affect the decision to become an entrepreneur. The second group inclu...

The Commission on Macroeconomics and Health (CMH) was established by World Health Organization Director-General Gro Harlem Brundtland in January 2000 to assess the place of health in global economic development. Although health is widely understood to be both a central goal and an important outcome of development, the importance of investing in health to promote economic development and poverty...

2 Solow’s ‘shocker’ 5 2.1 Details of the model . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.2 Steady state growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 2.3 Technological change . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.4 Growth accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2.5 Decentralised economy . . . . . . . . . . . ...