Problem set for first seminar

Here is the problem set for the first seminar. Written solutions from Seminar groups A and B should be handed in to Ragnhild Schreiner by next Wednesday lunch, either by email, in her mail shelf in the Economics Department, or at her office in the Economics department (see problem set for details).

Good luck!

Lecture plan

Here is the lecture plan for this semester

Lecture 2 - Human Capital

Here are the slides from today's lecture

Lecture 1 - slides

Slides from today's lecture can be found here

How to download shared documents

To download - go to "File" and "Download original":

Summary of the curriculum

Last year's summary of the curriculum  is found [here]
As mentioned in today's lecture, there will be some changes to this - but the core will remain as before.

Curriculum: Labor demand with asymmetric linear adjustment costs in a deterministic environment

Here`s the video mentioned in today's lecture that goes through the figure showing labor demand with asymmetric, linear adjustment costs in a deterministic environment.

Note that this is in a deterministic environment - that is: The firm thinks that "wages, productivity, product price and everything else will be the same from now and forever." The figure shows how it reacts if something happens to one of these factors (or mass quitting by workers) and the firm keeps on believing that the future will hold no further changes. If a firm faces changing conditions, on the other hand, such as business cycles, it may pay to aim for smaller adjustments then this: You don`t fire everyone you lose money on in a downturn, because you know you would then need to incur hiring costs to increase the labor stock again when demand picks up again.