巴罗宏观经济学：现代观点第6章.ppt

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1、Markets,Prices,Supply,and DemandChapter 61Macroeconomics Chapter 6 Markets in the MacroeconomyAssuming that households perform all of the functions in the economy.Each household runs a family business and uses labor,L,and capital,K,to produce goods,Y,through the production function.Y=A F(K,L)2Macroe

2、conomics Chapter 6 Markets in the MacroeconomyGoods marketLabor marketRental marketBond marketHouseholds Households(Firms)3Macroeconomics Chapter 6 The Goods MarketlHouseholds sell all the goods they produce on a goods market.Then households buy back from this market the goods that they want.lHouseh

3、old buys goods for consumption.to increase the stock of goods in the form of capital used for production,called investment.4Macroeconomics Chapter 6 The Goods Market and PricesThe price in this goods market,denoted by P,expresses the number of dollars that exchange for one unit of goods.We call P th

4、e price level.5Macroeconomics Chapter 6 The goods Market and PriceslY=A F(K,L)Since all of these goods are sold on the goods market,the variable Y will also represent theQuantity of goods per year sold and bought on the goods market.The quantity PY is the dollar value per year of the goods bought an

5、d sold on the goods market.6Macroeconomics Chapter 6 The goods Market and PricesThe expression 1/P is the value of$1 in terms of the goods that it buys.M dollars exchange for (M)(1/P)=M/PlAn expression like M/P is in real terms,in units of goods,whereas a quantity like M is in dollar or nominal term

6、s.7Macroeconomics Chapter 6 Labor Market in the MacroeconomyHouseholds supply labor on a labor market.lAssume that the quantity supplied,Ls,is a constant,L.lHouseholds buy and sell labor in the labor market at the dollar or nominal wage rate,w.lThe real wage rate is w/P.8Macroeconomics Chapter 6 Ren

7、tal Markets in the MacroeconomyEach household rents out all of the capital that it owns on a rental market.lWe think of the capital offered on the rental market as the supply of capital services,Ks.Since we have assumed that each household rents out all of its capital,we have Ks=K.9Macroeconomics Ch

8、apter 6 Rental Markets and PriceslHouseholds rent out capital,K,for dollars at the dollar or nominal rental price,RA household that rents the amount of capital Kd pays the nominal amount RKd per year and then gets to use the capital as an input to production.lThe real rental price is R/P.10Macroecon

9、omics Chapter 6 The Bond Market in the MacroeconomyA borrowing household receives a loan from another household,whereas a lending household provides a loan to another household.A household that makes a loan receives a piece of paper called a bond,and we call the market on which households borrow or

10、lend the bond market.The holder of a bond,the lender,has a claim to the amount owed by the borrower.11Macroeconomics Chapter 6 The bond Market and PricesEach unit of bonds commits the borrower to repay$1 to the holder of the bond.This$1 is the principal of each bond.lThe principal is the initial amo

11、unt advanced on a loan.12Macroeconomics Chapter 6 The Bond Markets and PricesEach unit of bonds commits the borrower to pay the holder a flow of interest payments of$i per year.lThe variable i is the interest rate,which is the ratio of the interest payment,$i,to the principal$1.lThe interest rate,i,

12、can vary over time.13Macroeconomics Chapter 6 Money as a Medium of ExchangeWe assume that the exchanges on each of these markets use a single form of medium of exchange.lA medium of exchange is an object held,not for its own sake,but rather to trade fairly soon for something else,such as goods and s

13、ervices.We call the medium of exchange in our model money.14Macroeconomics Chapter 6 Money as a Medium of ExchangeAssume that money is just a piece of paper,analogous to a paper currency issued by a government.lMoney is denominated in an arbitrary unit,such as a“dollar.”lDollar amounts are in nomina

14、l terms.lPaper money earns no interest.15Macroeconomics Chapter 6 Money as a Medium of ExchangeThe sum of the individual holdings of money equals the aggregate quantity of money in the economy.lAssume,for now,that this aggregate quantity of money is a given constant.lThe total money held by all hous

15、eholds must end up equaling this constant.16Macroeconomics Chapter 6 Constructing the Budget ConstraintThe quantities and prices determined on the four markets will determine household income.lFlows of income are sources of fundslPurchases of goods and assets are uses of fundsThe total sources of fu

16、nds must equal the total uses of funds.This equality is called the household budget constraint.17Macroeconomics Chapter 6 Constructing the Budget ConstraintIncomelProfitsHouseholds may earn profitan excess of revenue over costsfrom their business activities.Y=A F(Kd,Ld)=PY (wLd+RKd)=P A F(Kd,Ld)(wLd

17、+RKd)18Macroeconomics Chapter 6 Constructing the Budget ConstraintIncomelWage income If households supply the quantity of labor Ls to the labor market,they receive the nominal wage income of wLs per year.Quantity of labor supplied is the fixed amount L,so nominal wage income is wL.19Macroeconomics C

18、hapter 6 Constructing the Budget ConstraintIncomelRental income If households supply the quantity of capital Ks to the rental market they receive the nominal rental income of RKs per year.Since households supply all of their available capital,K,to the rental market,so that Ks=K,the nominal rental in

19、come is RK.20Macroeconomics Chapter 6 Constructing the Budget ConstraintRental incomeThe quantity K of capital disappears each year.The dollar value of this lost capital is PK.net nominal rental income=nominal rental income value of depreciationnet nominal rental income=RKPKnet nominal rental income

20、=(R/P)PKPKnet nominal rental income=(R/P)PKRate of return on owning capital=R/P21Macroeconomics Chapter 6 Constructing the Budget ConstraintInterest IncomeIf a households nominal bond holdings are B,the flow of nominal interest income received is iB per year.Since B equals zero for the whole economy

21、,we have that the total of interest income equals zero.22Macroeconomics Chapter 6 Constructing the Budget ConstraintTotal income lHousehold nominal income=nominal profit+nominal wage income+nominal net rental income+nominal interest incomelHousehold nominal income=+wL+(R/P)PK+iB23Macroeconomics Chap

22、ter 6 Constructing the Budget ConstraintConsumptionlHouseholds consume goods in the quantity C per year at price PlHousehold nominal consumption=P C24Macroeconomics Chapter 6 Constructing the Budget ConstraintAssetslHouseholds hold assets in three forms:money,M;bonds,B;ownership of capital,K.25Macro

23、economics Chapter 6 Constructing the Budget ConstraintAssetslWe assume that households hold a fixed amount of money in dollar terms;that is,we assume that the change over time of a households nominal money holdings is zerolM=026Macroeconomics Chapter 6 Constructing the Budget ConstraintAssetslIn con

24、sidering whether to hold assets as bonds or capital,households would compare the rate of return on bonds,the interest rate,i,with the rate of return on ownership of capital,R/P.lRate of return on bonds=rate of return on ownershipi=R/P 27Macroeconomics Chapter 6 Constructing the Budget ConstraintHous

25、ehold nominal income =+wL+i (B+PK)28Macroeconomics Chapter 6 Constructing the Budget ConstraintHousehold Budget Constraintlnominal value of assets=M+B+P Klnominal saving to be the change over time in the nominal value of assets.lnominal saving=(nominal assets)=M+B+PK29Macroeconomics Chapter 6 Constr

26、ucting the Budget ConstraintHousehold Budget Constraintlnominal saving=nominal income nominal consumptionlnominal saving=+wL+i (B+P K)P Cl B+P K=+wL+i(B+PK)PC30Macroeconomics Chapter 6 Constructing the Budget ConstraintHousehold Budget Constraint in Nominal TermslPC+B+PK=+wL+i(B+PK)lnominal consumpt

27、ion+nominal saving=nominal income31Macroeconomics Chapter 6 Constructing the Budget ConstraintHousehold Budget Constraint real termslC+(1/P)B+K=/P+(w/P)L+i(B/P+K)lconsumption+real saving=real income32Macroeconomics Chapter 6 Constructing the Budget Constraint33Macroeconomics Chapter 6 Profit Maximiz

28、ationlReal Profit/P=AF(Kd,Ld)(w/P)Ld (R/P)Kdreal profit=output real wage payments real rental paymentsClearing of the Markets for Labor and Capital Services34Macroeconomics Chapter 6 Clearing of the Markets for Labor and Capital Services35Macroeconomics Chapter 6 Clearing of the Markets for Labor an

29、d Capital ServicesThe Labor MarketlDemand for labor(/P)=AF(Kd,Ld)w/P =MPL w/Pchange in real profit=marginal product of labor real wage rate36Macroeconomics Chapter 6 Clearing of the Markets for Labor and Capital Services37Macroeconomics Chapter 6 Clearing of the Markets for Labor and Capital Service

30、sSupply of laborlWe are assuming that each household supplies a fixed quantity of labor to the labor market.lTherefore,the aggregate or market supply of labor,Ls,is the given amount L.38Macroeconomics Chapter 6 Clearing of the Markets for Labor and Capital ServicesClearing of the labor marketlw/P is

31、 determined to equate the aggregate quantity of labor demanded,Ld,to the aggregate quantity supplied,L.l(w/P)*=MPL(evaluated at L)39Macroeconomics Chapter 6 Clearing of the Markets for Labor and Capital Services40Macroeconomics Chapter 6 Clearing of the Markets for Labor and Capital ServicesThe Mark

32、et for Capital ServiceslDemand for capital services(/P)=AF(Kd,Ld)R/P =MPK R/Pchange in real profit=marginal product of capital real rental price41Macroeconomics Chapter 6 Clearing of the Markets for Labor and Capital Services42Macroeconomics Chapter 6 Clearing of the Markets for Labor and Capital Se

33、rvicesThe Market for Capital ServiceslSupply of capital services For the economy as a whole,the aggregate quantity of capital,K,is given from past flows of investment.In the short run,the aggregate or market quantity of capital services supplied,Ks,equals K.43Macroeconomics Chapter 6 Clearing of the

34、 Markets for Labor and Capital ServicesThe Market for Capital ServiceslClearing of the market for capital servicesR/P will be determined to clear the marketthat is,so that the aggregate quantity of capital services supplied,K,equals the aggregate quantity demanded,Kd(R/P)*=MPK(evaluated at K)44Macro

35、economics Chapter 6 Clearing of the Markets for Labor and Capital Services45Macroeconomics Chapter 6 Clearing of the Markets for Labor and Capital ServicesThe Market for Capital ServiceslThe interest ratei=R/P rate of return on bonds=rate of return on ownership of capitali=MPK(evaluated at K)46Macro

36、economics Chapter 6 Clearing of the Markets for Labor and Capital ServicesProfit in Equilibriuml/P=A F(K,L)(w/P)L (R/P)Kw/P=MPLR/P=MPKl/P=A F(K,L)MPL L MPK K47Macroeconomics Chapter 6 Clearing of the Markets for Labor and Capital ServicesZero Profit in Equilibrium48Macroeconomics Chapter 6 Clearing of the Markets for Labor and Capital ServicesZero Profit in Equilibrium49Macroeconomics Chapter 6