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:
​
  • 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
Last year's page