Macro Models
Lecture handout: Macro Models: from DICE to doughnuts |
Required readings:
- Raworth, K., 2012, A Safe and Just Space for Humanity: Can We Live within the Doughnut? Oxfam Discussion Papers
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.
Here’s a clip of John Lennon saying that overpopulation is a myth:
John Lennon “Overpopulation is a myth” 1971 pic.twitter.com/WINj8iEUYG
— Historic Vids (@historyinmemes) January 30, 2023
This was controversial at the time. In fact Paul Ehrlich’s book, The Population Bomb, was so influential it led to the sterilisation of 8 million Indian men. And yet as of January 2023 he’s still receiving media coverage when warning about unsustainable growth. Note:
Here’s a great visual showing different carbon pricing initiatives:
Here is more on the doughnut model:
Some spinning donuts (you see! it is meant to be measured after all):
Yes! At last… Watch national Doughnuts changing over time. Published today: 150 countries, 1992-2015. Eye-opening & powerful work by @AndrewLFanning & coauthors. Check out the website – an incredible teaching resource… https://t.co/8D59jZ9TMp pic.twitter.com/PwMYZwHc3g
— Kate Raworth (@KateRaworth) November 18, 2021
Here are the scorecards on social progress mentioned:
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. |