Economics 411-1, Fall 2009

Use the syllabus from last year’s course.

Class notes on: Recursive Representations of the Planning Problem, Introducing Hours Worked into the 'Canonical Model'; Shleifer's Implementation Cycles; Matsuyama's Growing Through Cycles; Bubbles; US Data; Recursive Methods and Participation Constraints; Krusell-Rios-Rull on Vested Interests; Christiano-Harrison, Ideas and Cycles, handout1 and handout2 on perturbation method (stochastic part not required for the course)

Notes on financial frictions:

Frictions based on asymmetric information and costly state verification:

Carlstrom and Fuerst.

Bernanke-Gertler-Gilchrist (class handout)

 

Frictions based on asymmetric information and moral hazard.

 

Homework #1: Exercises 2.1, 2.2, 2.3, 3.9 in S-L.

Homework #2.

Homework #3.

Homework #4.

Homework #5.

Homework #6.

Homework #7.

Homework #8.