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Econ602 -- Spring 2008
Macroeconomic Analysis I

Announcements

May-21: Final exam answers.

Mar-7: Midterm grades are here.

Feb-7: I updated the cash-in-advance slides. The main change: steady state when CIA does not bind. It only exists when 1+g = b.

Jan-23: I am not aware of any text book treatments of two period models. That's why I don't have reading assignments for the first 2 classes. If anyone finds a good reference, please let me know. Update on this: Williamson's (1999) lecture notes (link on Tony Smith's course page) talk about static and two period models (ch. 1).

Also useful (especially for Recursive Competitive Equilibrium): Per Krusell's lecture notes (again on Tony Smith's course page).

TA: Mr. Na Jin, Heady 73, 294-8783, jinna (at) iastate.edu. Office hours: Mon, Tue, Thr 1-2pm.

Dirk Krueger's draft text book on Macro Theory may be helpful.

Course Material

Syllabus. Grades. Date Material
1. Modern macro Mon Jan-14 SL
2. Two period models - -
     Two period model Mon Jan-14 SL, RQ, PS1 - Answers
     Adding a government Wed Jan-16 SL
     Planning problem Wed Jan-16 SL
     Many periods Wed Jan-23 SL
     Recitation: PS1 and examples Fri Jan-18 -
3. Two period OLG models - -
     Model Wed Jan-23 SL
     Recitation: Examples Fri Jan-25 -
     Efficiency and Social Security Mon Jan-28 SL, RQ, PS2 - Answers
     Bequests Mon Jan-28 SL
     Money in OLG models Wed Jan-30 SL, RQ, PS3 - Answers. Krueger, "Macroeconomic Theory," ch. 8
     Recitation: PS2 Fri Feb-1 -
4. Infinite horizon, discrete time models Wed Jan-30 SL, RQ, Notes on Dynamic Programming
    Example: pricing assets Mon Feb-4 SL, RQ, PS4 - Answer
    Cash in advance models Mon Feb-4 SL, RQ, PS5 - Answer
    Two sector models Wed Feb-6 SL, RQ, RQ2
    Recitation: PS3 Fri Feb-8 -
5. Infinite horizon, continuous time models - Notes on Optimal Control (SL)
    Solow model Mon Feb-11 SL
    Cass-Koopmans model Mon Feb-11 SL, RQ
    Dynamics and phase diagrams Wed Feb-13 SL, Notes, PS6 - Answer
    Recitation: PS4 Fri-Feb-15 -
    Money in the utility function Mon Feb-18 SL, RQ
    Endogenous growth: AK model Mon Feb-18 SL
    Aggregation issues Wed Feb-20 SL
    Recitation: PS6 Fri Feb-22 -

6. Stochastic Growth

 - -

    Stochastic optimization

 Wed Feb-20 SL

    Asset pricing

 Wed Feb-20 SL, RQ, PS7 - Answer

    Stochastic growth model

 Wed Feb-27 SL (fixed the missing capital income in the budget constraint), RQ
    Real business cycles Wed Feb-27 SL, RQ
    Recitation Fri Feb-29 No recitation this week.
Exam 1 Wed Mar-5 For your practice: 2007 exam. Covers material up to (incl.) the stochastic growth model.
    Recitation: PS7 Fri Mar-7 -
    Incomplete markets Mon Mar-10 SL
    No class Wed Mar-12 -

Search and Matching

 - -
    McCall model Mon Mar-24 SL
    Mortenson-Pissarides Mon Mar-24 SL, RQ
    Search models of money Wed Mar-26 SL

Economic Growth

 - -
Facts Wed Mar-26 SL
Cross-country income gaps Wed Mar-26 SL
    Human capital Mon Mar-31 SL
No class Wed Apr-2 Also no recitation this week.
Growth accounting Mon Apr-7 SL
Modeling productivity growth - -
    Growth in the Solow model Mon Apr-7 SL
    R&D: partial equilibrium Mon Apr-7 SL
    Model of product innovation Wed Apr-9 SL, RQ, PS8 - Answers.
    Growth accounting, again Mon Apr-14 SL
Industrialization Mon Apr-14 SL, RQ
Institutions: Evidence Wed Apr-16 SL
    Theory Mon Apr-21 SL

Contracts

    
    Limited commitment Wed Apr-23 SL
    Asymmetric information Fri Apr-25 SL, RQ [To make up for a cancelled class, we will have class during recitation hours]
Last class Wed Apr-30 Review class. Any questions answered.

Final exam (Wed May 7, 2:15-4:00)

   Covers: material starting from (including) stochastic growth / asset pricing. Excluding search / matching. Including contracts.
Qualifying Exam May-30 8:00am. Heady 368A. 4 hours.
[SL]: Slides
[PS]:  Problem set 
[RQ]: Review questions		    

Additional Notes

Last updated: 05/21/2008