宏观经济学Lecture 3-Chapter 4nppt课件.ppt

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1、Chapter4ConsumerandFirmBehavior:TheWork-LeisureDecisionandProfitMaximizationChong-EnBaiandBinzhenWuOutlineOneperiodmodel:static,nosavingModelforconsumers:consumption-labordecisionPreference;budgetconstraint;choices;laborsupplycurve;consumptiongooddemandcurveModelforfirm’schoices:labord

2、emand.Technology;choices;labordemandcurve;supplycurveforoutputCompetitiveEquilibriumComparativeStatics:howtheequilibriumisaffectedbythechangesintheenvironmentTakingthemodelstothedataOutlineTable3.2:SummaryofBusinessCycleFactsCyclicalityLead/LagVariabilityRelativetoGDPConsumptionProCoinc

3、identSmallerInvestmentProCoincidentLargerPriceLevelCounterCoincidentSmallerMoneySupplyProLeadingSmallerEmploymentProLaggingSmallerRealWagePro??AverageLaborProductivityProCoincidentSmallerAssumptionsAssumption(1)rationalagents:theyoptimize-theydothebesttheycangiventheirobjectivesandtheco

4、nstraintstheyface.Exogenousvariablesvs.Endogenousvariables.Exogenousvariablesaredeterminedoutsidethemodel.Acceptasgiven.EndogenousvariablesaredeterminedbythemodelandthemodeltriestoexplainthemAssumption(2)pricetaking–pricesareexogenoustoagents’choicesRepresentativeConsumer-PreferenceTwog

5、oods:Theconsumptiongood:agoodthatrepresentsanaggregationofallphysicalgoodsandservicesintheeconomyLeisure:anytimespentnotworkinginthemarket.AconsumptionbundleThreeproperties:Themore,thebetterTheconsumerlikesdiversityConsumptiongoodandleisurearenormalgoodsMathexpression:utilityfunctionU(C

6、,l)(C1,l1)isstrictlypreferredbytheconsumerto(C2,l2)ifU(C1,l1)>U(C2,l2)Theconsumerisindifferentbetween(C1,l1)and(C2,l2)ifU(C1,l1)=U(C2,l2)Graphrepresentation:indifferencecurvesIndifferenceCurvesTwoproperties:anindifferencecurveslopesdownward.indifferencecurveisconvex,thatisbowed-intoward

7、theorigin.MarginalRateofSubstitutionMarginalRateofSubstitutionofleisureforconsumption(MRSl,C)atpointA=-theslopeoftheindifferencecurvepassingthroughA=Ul(C,l)/Uc(C,l)-(C1–C2)/(l1–l2)ifBisveryclosetoAMRSl,Cistheunitsofconsumptiontheconsumeriswillingtosacrificeinordertogainoneunit