Week 1: Lecture Slides

• Backwards and Forwards Difference Equations

  • Stochastic Difference Equations

  • Linear and Non-Linear Models

  • The Solow Model as an Example

  • The Cagan Model as an Example

  • Eigenvalues

  • The Jordan Decomposition

  • An Application to the Solow Model

Week 3: Lecture Slides

• Linear Rational Expectations Models Part 2

  • The QZ Decomposition

  • The Model with Variable Labor Supply

  • Using the Symbolic Logic Engine in MatLab

  • Using Gensys to Simulate Data

  • Using Gensys to Compute Solutions

  • Calibration

Week 5: Lecture Slides

• The Overlapping Generations Model

  • The Two-Period Overlapping Generations Model

  • Two Types of Stationary Equilibria

  • Indeterminacy in the OLG Model

  • A Three-Period Example

  • The Perpetual Youth (Blanchard-Yaari) Model

  • The Model in Four Equations

Week 7: Lecture Slides

• Monetary and Fiscal Policy

  • Money in General Equilibrium

  • Taylor Rules

  • Inflation

  • Fiscal Policy

  • The Fiscal Theory of the Price Level

  • Expectations and the Belief Function

Week 9: Lecture Slides

• Forecasting with the Kalman Filter

  • Linear Projection

  • Sequential linear projection

  • The Kalman Filter in four steps

  • An MA example

  • An AR(p) example

  • An RBC example

  • Matlab Code for Lecture 9 GenDatRbc Kfilter

Week 2: Lecture Slides

• Linear Rational Expectations Models

  • The Blanchard-Kahn Conditions

  • Solving a LRE Model Step by Step

  • Deriving the Linearization Coefficients

  • The Solution Method: Backward and Forward Blocks

  • State Space Representations

  • The Lucas Critique

Week 4: Lecture Slides

• General Equilibrium Theory

  • The Arrow Debreu Model

  • Debreu-Sonnenschein-Mantel theorem

  • Properties of Equilibria

  • The Welfare Theorems

  • Infinite horizon models

  • The Negishi Theorem

  • Implications for Macroeconomics

Week 6: Lecture Slides

• Choice Under Uncertainty

  • Choice Under Risk: Arrow vs Debreu

  • Restrictions on Preferences

  • Restrictions on Markets

  • Sunspots

  • Dynamic Indeterminacy

  • Endogenous Business Cycles

Week 8: Lecture Slides

• The New Keynesian Model

  • A brief history of thought

  • The Phillips Curve

  • Monopolistic Pricing

  • The RA New Classical Model

  • The New Keynesian Phillips Curve

  • The RA New Keynesian Model

Week 10: Lecture Slides

• Estimation with the Kalman Filter

  • Maximum likelihood

  • Bayesian inference

  • Markov Chain Monte-Carlo

  • Markov Chains and Transition Kernels

  • The Metropolis Hastings Algorithm

  • Estimating models with Dynare

  • Dynare Code for Lecture 10 est