Macro 2 - Tepper School of Business

Lecture Notes:
Coming Soon

Lectures:

• Lecture 1: We started talking about the stochastic growth model. Paper by Epstein and Zin on separating risk-aversion and IES. Paper by Yaari on separating wealth effects from risk-aversion. 
  • ​Zoom Recording of the Lecture
• Lecture 2: We discussed stationarity and ergodicity in an example of the stochastic one-sector growth model.
  • ​Zoom Recording of the Lecture
• Lecture 3: We discussed general approach to recursive stochastic dynamic programming and computations. Started talking about asset prices.
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• ​Lecture 4: Continued talking about asset prices; how to price Lucas trees; examples of rational bubbles in overlapping generations models and started talking about Equity Premium
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• ​Lecture 5: Started talking about McCall model of search in discrete time and continuous time.
  • ​Zoom Recording of the Lecture
• ​Lecture 6: Discussed Diamond Paradox and Burdett-Judd's solution to it; talked about how it leads to endogenous price dispersion
  • ​Zoom Recording of the Lecture
• ​Lecture 7: Talked about the DMP model
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• ​Lecture 8: Continued with DMP and talked about the Hosios condition
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• ​Lecture 9: Finished efficiency properties of DMP and started talking about directed search
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• ​Lecture 10: Continued talking about directed search
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• Lecture 11: Finished discussion of directed search and its efficiency properties; Started talking about wage dispersion a la Postel-Vinay and Robin
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• Lecture 12: Finished talking about PVR
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• Lecture 13: Stochastic DP in Continuous Time
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Problem Sets:
Problem Set 1 - [PDF]; Due March 8th.​

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