Tufts University - Masters Program in Economics

EC205 - Macroeconomic Theory I - Homepage

Prof. M. Bianconi - Autumn 2009

Office Hours: Tu 11:30-1:15pm

Email: marcelo.bianconi@tufts.edu

Class meets at Braker 113 on M-W 3:00-4:15pm (Block K)

The course syllabus is in the PDF file: SYLLABUS

Course Progress

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Course Progress

EC 205 - Macroeconomic Theory I

Week 1 - Sep 8-11

W: Introduction: Phelps(1990), Stock and Watson (1999), Barro (1997), Chs. 7 and 8; Mankiw (2006) and Chari and Kehoe (2006) readings to be handed out.

Week 2 - Sep 14-18

M: Labor Theory of Value; Partial and General Equilibrium: Becker (1965), Williamson appendix handed out.

W: Labor Theory of Value; General Equilibrium: Becker (1965), Williamson appendix handed out: Indivisibilities, Rogerson (1988) handed out.

· Problem Set 0

Week 3 - Sep 21-25

M: Labor Theory of Value; General Equilibrium, Indivisibilities and Lotteries; Rogerson (1988); discussion of Labor Markets. Labor Market Review: LMR

W: Two-Period Consumption Allocation and Credit Market in Partial Equilibrium; the utility function and the elasticity of (intertemporal) substitution. Williamson and Manuelli readings handed out.
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Week 4 - Sep 28-Oct 2

M: Two-Period Consumption and Physical Capital in General Equilibrium; Manuelli handed out.

W: Two-Period models continued: General Equilibrium, Aggregate Investment, and Capital Markets; Manuelli handout.

· Problem Set I

Week 5 - Oct 5-9

M: General Equilibrium, Tobin's q in the Two-Period Model. Introduction to Dynamic Programming.

W: Dynamic Programming: Kreps (1990), Dixit (1990), Bianconi (2003).
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Week 6 - Oct 12-16

M: No Class – University Holiday.

Tu: (Monday Schedule) - Dynamic Programming: Kreps (1990), Dixit (1990), Bianconi (2003) continued and the Solow growth model.

W: Dynamic Programming: Kreps (1990), Dixit (1990), Bianconi (2003) and the Solow growth model continued.

· Problem Set II

Week 7 - Oct 19-23

M: Review and Liquidity Constraints.

W: Mid-Term Exam I

Week 8 - Oct 26-30

M: Wealth Accumulation and Exponential Discounting.

· Problem Set III

W: Wealth Accumulation and Hyperbolic Discounting; Laibson (1997) and Harris and Laibson (2001).

Week 9 - Nov 2-6

M: Wealth Accumulation and Hyperbolic Discounting; Laibson (1997) and Harris and Laibson (2001); Introduction to Stochastic Dynamic Programming, Bianconi (2003, handed out).

W: Stochastic Dynamic Programming, Bianconi (2003, handed out).

Week 10 - Nov 9-13

M: Stochastic Dynamic Programming, Bianconi (2003, handed out).

W: Costs of Business Cycles calculations.

Week 11 - Nov 16-20

M: General Equilibrium Under Risk - Debreu and Arrow; Bianconi (2003).

W: General Equilibrium Under Risk - Debreu and Arrow; Bianconi (2003).

· Problem Set IV

Week 12 - Nov 23-27

M: Mid-Term II

W: No Class - University Holiday

Week 13 - Nov 30-Dec 4