Teaching
Course materials from my teaching at Vilnius University.
Economic Theory II
An intermediate macroeconomic theory course. Lectures move from the Solow growth model and the overlapping generations model, through dynamic consumption saving and IS LM, to a full production economy with firms and households, fiscal policy and Ricardian equivalence, and the role of money.
The slides are based on Garin, Lester, and Sims, Intermediate Macroeconomics, a free textbook.
Lecture Slides
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Lecture 1
Introduction
Course structure · Models · History of economic thought
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Lecture 2
The Solow Model
Kaldor facts · Cross country facts · The basic Solow model · The steady state
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Lecture 3
The Solow Model II
Increases in saving and productivity · The Golden Rule · The augmented Solow model
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Lecture 4
The OLG Model
Issues with the Solow model · OLG equilibrium and functional forms · OLG vs. Solow · OLG and policy
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Lecture 5
Dynamic Consumption Saving
Model setup · Graphical analysis · Comparative statics · Extensions (wealth and other factors)
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Lecture 6
The IS LM Model
Model setup and aggregation · Equilibrium · Supply and demand shocks · Data
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Lecture 7
The Production Economy
Firms: dividends, firm value, labour and investment demand · Households: consumption and leisure, labour supply · Financial intermediary · Equilibrium
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Lecture 8
Fiscal Policy
Ricardian equivalence · The production economy · Market clearing · Equilibrium
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Lecture 9
Money
Household optimisation · Government · Equilibrium
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