MIT 14.772 Development Economics: Macroeconomics, Spring 2013 - 2. Micro-Founded Macro Models

MIT 14.772 Development Economics: Macroeconomics, Spring 2013 View the complete course: http://ocw.mit.edu/14-772S13 Instructor: Robert Townsend This lecture covers economic research about micro-founded macro models. Chapters 0:00:00 Title slates 0:00:26 Overview of micro-founded macro models 0:02:39 Example of how to use micro-founded macro models to do welfare analysis 0:10:24 The marriage of theory and data 0:11:17 Broad overview of Lloyd-Ellis & Bernhardt (LEB) model and Greenwood & Jovanovic (GJ) model; Townsend’s empirical simulations of them 0:19:30 Occupational choice map 0:36:41 Introduction of financial deepening to model 0:44:58 Model versus data outcomes 0:46:18 Welfare experiments using the models 0:56:20 Motivation for GJ model 0:59:16 GJ model advantages of participating in financial system 1:06:23 Savings functions and portfolio choice 1:12:33 Model simulation License: Creative Commons BY-NC-SA More information at http://ocw.mit.edu/terms More courses at http://ocw.mit.edu