Thomas Sargent Department of Economics

Economics 30305, Advanced Macroconomics, New York University

Economics 30305 (advanced macro) meets in Room 5-80 in KMC at the Stern school. This room has a few more seats. You will need your NYU ID to get into the building. If you don’t have an NYU ID, please let me know and I’ll arrange to have you sign is as a visitor. Tell the guards that you are attending economics 30305 (advanced macro). The times of the class will be MONDAY 9:15—10:45 and THURSDAY 11:15-1:15.

An in class MIDTERM EXAMINATION will be given on Thursday November 8. The class on Monday November 4 will be a review session for the midterm.

The FINAL EXAMINATION will be given during the week of December 2—6. It will probably be an in class exam or else a very short short take home exam.

First week and one half of class.

Please read the following two revised chapters from RMT:

1. Chapter 1

2. Chapter 7

Homework 1: Please get the first assignment ec30305a.pdf and work the problems after doing the assigned reading.

Second Week and a half of class:

Please read the following two revised chapters from RMT:

3. Chapter 3, practical dynamic programming

4. Chapter 4, linear quadratic dynamic programming

Homework 2: Please get the assignment ec30305b.pdf and work the problems after doing the assigned reading. This homework is due on Monday, September 23, 2002.

September 23—October 3, 2002:

Please read the following two revised chapters from RMT:

5. Chapter 13, Self-Insurance

6. Chapter XX, International Trade

7. Chapter XXX, Stackelberg problems

Homework 3: Please get the assignment ec30305c.pdf and work the problems after doing the assigned reading. This homework is due on Thursday, October 3, 2002.

October 3, 2002—October 25, 2002:

Please read the following two revised chapters from RMT:

8. Chapter 14, Bewley Models

9. Chapter 15, Recursive Contracts

10. Cabellero meets Bewley (by Neng Wang, U of Rochester).

Homework 4: NOTE: I have revised problem 2 on October 15 to correct some minor bugs. Please download the new version.

Please get the assignment ec30305d.pdf and work the problems after reading the chapter on Bewley models. Two of the problems are about Stackelberg problems. This homework is due on Thursday, October 17, 2002.

Homework 5:

Please get the assignment ec30305e.pdf and work the problems after reading the sections of chapter 15 on the Thomas-Worrall (1988) model and the Kocherlakota (1996) model. This homework is due on Monday, October 28, 2002.

NEW READING: Please read the following for the October 24 class.

11. Recursive contracts formulation of unemployment insurance problems

NEW READING: Please read the following for the November 11-22 classes.

12. Credible public policy

Homework 6:

Due: November 25, 2002. Please work exercise 16.3 in the chapter on Credible public policy (version of Nov 18, 2002 or later).