Rice University

The tentative course outline is below. It will be updated soon to include requirements.

The course material will be added on this page as the class progresses.

The plan for lectures is:

• • Lectures 1&2

    • Overview of Dynamic Programming (notes and presentation are below)

      • asset pricing

      • stochastic cake eating problem

    • Stochastic Growth Model (presentation notes below)

    • Heterogenous Agent Models

    • Numerical Solutions

  • Lectures 3&4: Household Optimization

    • Intertemporal Consumption

    • Portfolio Choice

    • Asset Market Participation

    • Durable Goods

      • Adda- Cooper on cars

      • Fernandez-Villaverde and Krueger (MD, 2011)

  • Lecture 5: Firm Capital Demand

    • Quadratic Adjustment Costs (Q Theory)

    • Lumpy Investment

  • Lecture 6: Labor Search