Econ720: Advanced Macroeconomic Theory (PhD)

Fall 2019. Prof. Lutz Hendricks. UNC

OLG Models, Infinite horizon, discrete time, Infinite horizon, continuous time, Growth, Stochastic growth, Heterogeneous Agents, [Search and Matching][Search]

Announcements

• Nov–12: I updated the details for the example with durable intermediates. Hopefully clearer now…
• The midterm will over the material up to (including) the discrete time infinite horizon model.
• No office hours on Thu Oct–10
• Final exam: Mon, Dec–9 at noon (regular class room)
• Syllabus

Special dates

• Sep–02 (Mon): Labor day
• Oct–14 (Mon): Midterm: Material covered: TBA.
• Nov–27 (Wed): Thanksgiving

Modern Macro

• Aug–21 (Wed): Modern macro, Here we talk about methods: how to set up a general equilibrium model and characterize its equilibrium.
• Aug–26 (Mon): Sequential trading and Arrow-Debreu

Overlapping Generations

• Aug–28 (Wed): Model
• Sep–04 (Wed): Dynamics and steady state, solution for example
• Sep–09 (Mon): Dynamics and steady state, part 2, PS1, answers
• Sep–11 (Wed): Efficiency and Social Security, RQ (review questions, not to be handed in)
• Sep–16 (Mon): Bequests
• Sep–18 (Wed): Money in OLG models, PS2, answers

Infinite Horizon, Discrete Time Models

• Sep–23 (Mon): The growth model
• Sep–25 (Wed): Dynamic programming
• Sep–30 (Mon): Competitive equilibrium, RQ, PS3, answers
• Oct–02 (Wed): Cash in advance models, RQ, PS4, answers
• Oct–07 (Mon): Two sector models, RQ
  • Example: Asset pricing, RQ
  • Dynamic programming theorems, Notes on Dynamic Programming

Infinite Horizon, Continuous Time Models

• Oct–09 (Wed): Solow model
• Oct–16 (Wed): Optimal control
• Oct–21 (Mon): The growth model
• Oct–23 (Wed): Competitive equilibrium
  • Dynamics and phase diagrams (skipped this year), RQ
• Oct–28 (Mon): Money in the utility function, PS5, answers
• Oct–30 (Wed): Perpetual youth
  • Aggregation issues (skipped this year)

Endogenous Growth

• Nov–04 (Mon): Endogenous growth: AK model, RQ, Phase diagram (skipped this year)
  • R&D driven growth
  • Increasing varieties, RQ
• Nov–06 (Wed): Increasing varieties, part II
• Nov–11 (Mon): Knowledge spillovers and scale effects, PS6, due Nov–18
• Nov–13 (Wed): Quality ladders

Stochastic Growth

• Nov–18 (Mon): Stochastic optimization
  • Dynamic programming – we will not talk about this in class. Think of it as a simple user guide to the results that are out there.
• Nov–20 (Wed): Asset pricing
• Nov–25 (Mon): Extensions, RQ, PS7, due never
• Dec–02 (Mon): Stochastic growth model, RQ

Heterogeneous Agents

• Dec–04 (Wed): Bewley model
  • Wealth distribution: , Motivation and baseline model
  • Stochastic aging
• Dec–04 (Wed): Aggregate uncertainty: Krusell and Smith