ADVANCED MACROECONOMICS
Fall 2016

Errata to lecture notes
(continually updated)
 
21/9-2016    
Ch. 6, p. 231, middle:    "scope for counter-cyclical"    should read    "scope for countra-cyclical".
    -   , p. 235, line 5 from below:    "spending) by debt issue"    should read    "spending by debt issue)"    
    -   , p. 246, line 1 from below:     at the end add "society is thus unaffected and aggregate saving stays the same. <footnote 25> A complete Barro model is presented in Chapter 7."
    -   , p. 251, eq. (6.34):    "w_t"    should read    "w".
    -   ,    -    , footnote 27:    "(??)" refers to the formula for s_t at the bottom of p. 250.
    -   , p. 252, line 7 from below, the formula for deltaT_t :    on the right-hand side a factor m is lacking.
    -   ,    -    , two lines further down:    "his"    should read    "this".
    -   , p. 257, line 4 from below:    after "in taxation" add ", the composition of the tax-base argument''    should read    " 'true structural budget' ".
    -   ,    -    , one line further below:    "are myopic"    should read    "are more myopic".

9/10-2016
Ch. 12, p. 488, middle:    "looses the deposit"    should read    "loses the deposit".

11/10-2016
Ch. 12, p. 512, line 2:    "may differ"    should read    "tends to differ".
    -     , p. 513, line 1-2:    Replace "Another new ... absent before." by "Let us compare k_tilde* with the golden rule capital intensity, k_{GR}."

Ch. 13, p. 575, note 21:    Delete "households".

18/10-2016
Ch. 6, p. 244, line 8:    "in (??)"    should read    "in (DGBC)".

21/10-2016
Ch. 9, p. 358, line 1 from below:    "of what in"    should read    "of what".
    -   , p. 369, line 10:    "by the fration rule"    should read    "by the quotient rule".
Ch. 13, p. 547, line 4:    "T_0 is proportional to G_0"    should read    "T_t is proportional to G_t"  

31/10-2016
Ch. 14, p. 604, line 4:    "installment"    shoud read    "installation".
    -        -       , line 7:     "installment"    shoud read    "installation".
    -        -       , second line below (14.27):    delete "internal".
    -        -       , line 7:     "installment"    shoud read    "installation".
    -    , p. 605, line 14-16:    delete "This market evaluation ....of the firms."

7/11-2016
Ch. 15, version as of 1/11, App. D., p. 664, line 10 from below:    "a bubble"    should read    "a rational bubble". 

15/11
Special Note 2, p. 7, line 8 from below:   "{(X_t, Y_t)}_{t-n}^{t+T}"    should read    "{(X_s,Y_s)}_{s=t₀}^{t₀+T}  T periods ahead".
        -          ,    -  , line 9 from below:    "as of time t"    should read    "as seen from time t₀".
        -          ,    - 7, line 9 from below:    "from time t)."    should read    "from time t_0)." 
        -          ,    - 37, line 7 from below:    "sequences {(X_t, Y_t)}_{t=t_0}^{T}, where Y_t and X_t"    should read    "{(X_s,Y_s)}_{s=t₀}^{t₀+T}, where Y_s and X_s".
        -          ,    - 37, line 5 from below:    "{t₀, t₀+1, ..., T}"    should read    "{t₀, t₀+1, ..., t₀+T}".
        -          ,    - 37, line 4 from below:    "{(Y_t, X_t)}_{s=t}^{T}"    should read    "{(Y_s, X_s)}_{s=t₀}^{t₀+T}".

Ch. 19, p. 762, line 8:    "the market than"    should read    "the market more than".

Ch. 22, p. 871, line 4:    Delete "We shall use". 
      -   , p. 880, line 3:    "expectations, not be"    should read    "expectations, can not be".
      -   ,       -   , line 15 from below:    "so, both ..."    should read    "both ...". 
      -   , p. 891:    Figure 22.1 contains a misleading feature. It looks as if R immediately after t_0 must equal the new steady-state value. The truth is that we generally only know that R immediately after t_0 must be higher than the old steady-state value but lower than the R immediately after t_0 in Fig. 22.7 (Case (c): unanticipated policy shift).
    Concerning Case (d), Fig. 22.9 shows a possible position of the economy immediately after t_0, namely at the point A. Let the associated R be denoted R_A. This value happens to be lower than the new steady-state value and far lower than R_A in Fig. 22.7 (Case (c)). This is an example where the time interval (t_0, t_1) is relatively long and so there is a long time until monetary policy is tightened and the upward jump in r takes place. Hence, to be consistent with Fig. 22.9, Fig. 22.10 should show R immediately after t_0 toerval (t_0, t_1) is short, the situation is close to Case (c), where the time interval is nil. The upward jump in r takes place soon afte be lower than the new steady-state value which it doesn’t.
    If instead the time intr t_0 and so the weighted average of the expected future short-term interest rates will be high as seen from immediately after t_0. Thereby R will immediately after t_0 be high and close to its value in Fig. 22.7, i.e., higher than the new steady-state value.
Ch. 22, p. 901, Figure 22.18, line 1 of title:    "An unanticipated ..."    should read   "An anticipated ..."   

16/11-2016
Ch. 15, version as of 1/11, App. D., p. 656, line 15 from below:    "equal to (1 - tau_r)*r."    should read    "equal to (1 - tau_r)*r in the absence of capital gains or losses". 
    -    -    -    -    -    -    -    -    -     , p. 656, line 7:    "at the cost p*"    should read    "at a cost below the bubbly price".   

17/11-2016
Ch. 29, p. 777, Figure 19.3:    The second argument in the D function (at two places) should be Y^d/m and Y^e /m, respectively, not Y^d and Y^e .

22/11-2016
Special Note 2, p. 9, line 8 from below:    Add tau as a new last argument in the function C(Y,......).
        -           , p. 14, Figure 2, the title:    ", and G)."    should read    ", tau, and G)."

28/11-2016
Midterm paper problem set, p.3, line 2 from below:    "and there is Harrod-neutral"    should read    "and grows at a constant rate, the same as that of capital; there are CRS and Harrod-neutral...".

29/11-2016
Special Note 4, p. 3, line 9-10:    Delete "government spending ... the size of mu."

16/12-2016
Ch. 29, p. 1080, line 2:    "aboutOneshould10 years."    should read    "about 4-10 years."
    -     , p. 1081, Table 1.    It is deliberate that the cells are empty. The aim of the table is only to underline the distinction between the character of a shock and the character of its effect.  
Ch. 30, p. 1091, eq. (30.9):    "K_0 >= 0"    should read    "K_0 > 0".   
    -     , p. 1092, line 3:    "... A_t)."    should read    "... A_t."
    -     , p. 1107, line 13:    Delete "of an attempt at building".

Ch. 31, p. 1119, Fig. 31.1:    Along the vertical axis, "E1*u'(c2)"    should read    "E1u'(c2*)".   
    -     , p. 1120, Fig. 31.2:    In both panels the horizontal axis represents c and the vertical axis u'(c). In the lower panel the particular abscissas considered is Ec, to which corresponds the ordinate E(u'(c)) = u'(Ec).
    -     ,        -    , line 6 from below:    "Fig. 30.1 gives"    should read    "Fig. 31.1 gives".
    -     , p. 1121, line 8:    "Fig. 30.1 shows"    should read    "Fig. 31.1 shows".  
    -     ,        -    , line 4 and line 1, both from below:    "Fig. 30.2"    should read    "Fig. 31.2".       

 

 

 

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