Essays in macroeconomic theory

Abstract

This thesis is a collection of essays on macroeconomic theory, broadly consisting of two topics. The first topic, covering Chapters 1-2, deals with the issues of repudiation risk and limited liability. The second topic develops a new theory of habitual dependence of leisure demand (Chapter 3), followed by the discussion of the theory implications to growth (Chapter 4) and the extension of the theory to comprehensive habit formation mechanism over both consumption and leisure demand (Chapter 5).