Macro Models

Lecture handout: Macro Models: from DICE to doughnuts

This session integrates ecological concerns wirth standard economics, providing an overview of how macroeconomists model the economy and how those methods and models relate to climate issues.

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For a history of the Phillips curve, listen to:

• How the Phillips Curve shaped macroeconomics, Planet Money, September 8th 2023

Here are the scorecards on social progress mentioned:

• Legatum Prosperity Index
• Social Progress Index

In some versions of this presentation I discuss agent-based models. You can play with the Schelling model here. To learn more about ABMs I recommend this Runestone Academy interactive textbook. Also see:

• “Why Agent-Based Modeling Never Happened in Economics” Mike Makowsky, March 2022

Further readings:

• Boulding, K.E., 1977, “Notes on goods, services, and cultural economics” Journal of Cultural Economics, 1(1):1-12

Recommended audio:

• “Macro 6: DSGE“, Anthony J. Evans (for more depth on Macroeconomic models including my other podcast episodes see here)

Recommended videos:

Here is a fascinating video (in French) on the limits to growth and the World 3 model

Here is Ray Dalio’s 30 minute explainer on his economic framework:

Quiz:

Here’s a short quiz to test your knowledge about the sessions:

https://forms.gle/7gS6wzAuUxirvKJ57

Learning Objectives: Consider the upper limits of economic growth and the impact of economic activity on the environment.

• Category: workshops