Dynamic Macroeconomics: A Didactic Numeric Model

25 Pages Posted: 1 May 2018 Last revised: 12 Jul 2019

See all articles by Carlos Esteban Posada

Carlos Esteban Posada

Universidad EAFIT

Santiago Sanchez

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF), Students

Date Written: April 25, 2018

Abstract

Teaching Dynamic Macroeconomics at undergraduate courses relies exclusively on intuitive prose and graphics depicting behaviours and steady states of the main markets of the economy. But when the case of forward-looking agents and the macroeconomic implications of their actions are discussed, intuitions and graphical representations offered to students may lead to unsupported conclusions. This happens even if the teacher and students use the chapter upon a dynamic macroeconomic model of one of the most didactic and ordered texts ever published: Williamson (2014). In this paper we try to sustain this assertion.

Keywords: Dynamic Macroeconomics, Forward-Looking Agents, General Equilibrium, Competitive Markets, Total Factor Productivity, Public Expenditure Multiplier

JEL Classification: A22, A23, C61, C63, E00, E17

Suggested Citation

Esteban Posada, Carlos and Sanchez, Santiago, Dynamic Macroeconomics: A Didactic Numeric Model (April 25, 2018). Center for Research in Economics and Finance (CIEF), Working Papers, No. 18-04, Available at SSRN: https://ssrn.com/abstract=3170960 or http://dx.doi.org/10.2139/ssrn.3170960

Carlos Esteban Posada (Contact Author)

Universidad EAFIT ( email )

Carrera 49 N° 7 sur – 50
Bogotá, Antioquia 00000
Colombia

Santiago Sanchez

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF), Students ( email )

Carrera 49 No. 7 South - 50
Bogota
Colombia

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