Econ6012: Macroeconomic Theory (Fall 2018)

Announcements

October 11, 2018: The midterm test will be held on October 25 (Wednesday) in class (from 2-4:30pm). It is a two and half hours exam and is open book and open notes.

November 15, 2018: The final exam is closed book closed notes, but students are allowed to bring one A4 paper with handwritten or printed notes on both sides.

Course Syllabus 

Topic 1: (Warm-up) Optimal Control and Dynamic Programming and their Applications to Deterministic Consumption-Saving Problems. [slides] Matlab programs to solve the optimizing consumption-saving problem using value function iteration: [IterateVF.m], [IterateGraph.m], and [ConvergeVF.m] Introduction to Matlab.

Topic 2: Economic Growth I: Infinite-horizon Growth Models. [Slides] Here are notes on solving difference and differential equations, respectively: [Note1][Note2].

Topic 3: Economic Growth II: OLG Models and Endogenous Growth Models. [Slides]

Topic 4: Uncertainty, Expectations, and Economic Dynamics. [Slides] Matlab codes to simulate an Markov chain: [markov.m] and an AR(1) process: [ar1.m][arsim.m].

Topic 5: Stochastic Growth and Real Business Cycles. [Slides] Here is a link to Chapter 1 (Economic Growth and Business Cycles) in Frontiers of Business Cycle Research edited by Thomas Cooley. Chris Sims' website on solving linear RE models and his note on the computational method. Harold Uhlig's website for "A toolkit for analyzing nonlinear economic dynamic models."

Topic 6: Stochastic Growth and Real Business Cycles (II). [Slides] Matlab codes to solve Lyapunov equation: [lyapcs.m] or [lyapcsd.m]. Matlab programs to solve the optimal linear regulator problem: [olrp.m] and [doubleo.m], and solve the LQ version of an RBC model: [lqrbc0.m].

Topic 7: Intertemporal Consumption and Saving. [Slides]

Topic 8: Portfolio Choice and Consumption-based Asset Pricing. [Slides]

Problem Sets      

Problem Set 1 (Due on September 27, Thursday, in class; extended to Oct 4.) Answers to Problem Set 1

Problem Set 2 (Due on November 15, Thursday, in class) Answers to Problem Set 2

Problem Set 3 (Optional) Answers to Problem Set 3

Answers to the Midterm Exam