PhD Macroeconomics

FIVE CANONICAL MODELS

Spring 2013

Time: Tuesdays, 2:00 - 4:00, Room 745

8 January The Classical Optimal Growth Model
calculus of variations, phase diagrams, analytical solution of pairs of linear first-order difference equations
Lecture 1 Problem Set 1
15 January

Two Representative Agent Models with Money in the Utility Function
a small open economy model
Sidrauski's model
optimal control theory

Lecture 2 Problem Set 2
22 January Brock's Discrete-Time Representative Agent Model
necessary and sufficient conditions for optimality
Lecture 3 Problem Set 3
29 January The Overlapping Generations Model
Shell's economics of infinity
Wallace's model of fiat money: existence and optimality
Karaken and Wallace's model of exchange rate indeterminacy
Lecture 4 Problem Set 4
5 February Time-Invariant Decision Rules and Dynamic Programming
Bellman's equation
Blackwell optimal policies
Lecture 5