Macro 2 - Tepper School of Business
Lecture Notes:
Part 1: Search and Unemployment - [PDF]
Part 2: Notes on the Huggett-Aiyagari model - [PDF]
Notes on the Endogenous Grid Method - [PDF]
Lectures:
Hand-written Notes from the Class
Search - [PDF]
Consumption and Saving - [PDF]
Trade - [PDF]
Part 1: Search and Unemployment - [PDF]
Part 2: Notes on the Huggett-Aiyagari model - [PDF]
Notes on the Endogenous Grid Method - [PDF]
Lectures:
- Lecture 1:
- We discussed McCall's model of search. For a version where the searcher does not know the distribution of outcomes (wages, prices, etc.) see Rothschild (1974)
- Briefly discussed Stigler's version of search which is non-sequential. As De Los Antos, Hortacsu, and Wildenbeest - paper here - show using data on consumers' online search, consumers do go back to examined item, i.e., they do not buy the last item visited which is what sequential search model a la McCall would prescribe.
- Discussed Rotschild's critique and Diamond's paradox and started on Burdett and Judd
- Lecture 2:
- Finished talking about Burdett and Judd Model. An interesting illustration of the forces in the model which can be potentially tested in the data is in the paper by Sorensen - here.
- Started talking about the DMP model
- Lecture 3:
- Finished the DMP model and talked about Hosios Condition
- Started discussing evidence on distribution of wages and its determinants; Re: AKM regressions, see the paper by Abowd, Kramarz and Margolis - here.
- Lecture 4:
- Started discussing the model by Postel-Vinay and Robin.
- Lecture 5:
- FInshed the PVR model and started income fluctuations problem
- Lecture 6:
- Income fluctuations problem
- Lecture 7:
- Talked about the Aigayar-Huggett-Bewley model
- Lecture 8:
- Finished talking about the Aiyagari model
- Started talking about computation of the model
- Lecture 9:
- Endogenous vs Exogenous Risk sharing
- Unemployment Insurance
- Lecture 10:
- Finished the unemployment insurance problem
- Lecture 11:
- Started talking about trade and the DFS model
- Lecture 12:
- Further discussed DFS
- Lecture 13:
- Talked about the Eaton Kortum model
Hand-written Notes from the Class
Search - [PDF]
Consumption and Saving - [PDF]
Trade - [PDF]
Problem Sets:
Problem Set 1 - [PDF]; Due: April 1 2020
Problem Set 2 - [PDF]; Due: April 24 2020
Problem Set 3 - [PDF]; Due: May 8 2020
Problem Set 1 - [PDF]; Due: April 1 2020
Problem Set 2 - [PDF]; Due: April 24 2020
Problem Set 3 - [PDF]; Due: May 8 2020
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