Macroeconomics I

Catalog description

The first course in the macro sequence introduces the technical foundation for the study of macroeconomic models, introducing the theory and applications of dynamic programming. The first part of the course develops the technical tools on dynamic programing, including Bellman equations and the principle of optimality. On the second part, these tools are applied to the workhorse model of macroeconomics, the one sector growth model, covering its deterministic and stochastic versions. As another application of application of dynamic programming, the canonical labor search model is studied.