• Lectures: MW 11:30 - 1:20, via Zoom (link available in Carmen)

• Office hours: Thursday, 2-3pm

• TA: Mike Carter

• The class syllabus can be found here.

• Contacting me:

  • Email: dempsey.164@osu.edu

  • Please begin subject of all emails with "ECON 8723"

• The course is divided into 4 modules, described below

• Texts:

  • "LS:" Ljungvist, L. and T. Sargent. "Recursive Macroeconomic Theory," 2012, MIT Press.

  • "SLP:" Stokey, N., R. Lucas, and E. Prescott. "Recursive Economic Dynamics" 1989, Harvard UP.

  • "Woodford": Woodford, M. "Interest and Prices: Foundations of a Theory of Monetary Policy," 2003, Princeton UP.

  • "Walsh": Walsh, CE. "Monetary Theory and Policy," 2010, MIT Press.

  • "Acemoglu": Acemoglu, D. "Introduction to Modern Economic Growth," 2009, Princeton UP.

Primary readings are listed alongside the lecture. Alternative readings are bulleted below.

Module 1: Overlapping Generations (OLG) Models

3.8 Lecture 1a. Introduction to the course, OLG basics. LS 9.1 - 9.2.

3.10 Lecture 1b. Topics in OLG: money, production, sequential trading. LS 9.3 - 9.7, Acemoglu 9.2 - 9.5.

Module 2: Money

3.15 Lecture 2a. Search theoretic models of money. LS 28.9.

• Kiyotaki and Wright (1993), Trejos and Wright (1995)

3.17 Lecture 2b. Money in the neoclassical model. Walsh 2, 3.3.

3.22 Lecture 2c. the New Keynesian model: theory. Walsh 8.

• Woodford 3.1-3.2

3.24 Lecture 2d. the New Keynesian model: policy. Walsh 8.

• Woodford 4.1-4.2, 6.2

3.29 MIDTERM EXAM

3.31 INSTRUCTIONAL BREAK II -- NO CLASS

Module 3: Fiscal Policy

4.5 Lecture 3a. Ricardian equivalence and distortionary taxes. LS 10, 11.1 - 11.9.

4.7 Lecture 3b. Ramsey problem (1): deterministic. LS 16.1 - 16.7.

4.12 Lecture 3c. Ramsey problem (2): stochastic. LS 16.9 - 16.13.

4.14 Lecture 3d. Mirrlees problem.

• Mirrlees (1971), Golosov et al (2013)

Module 4: Macro Topics

4.19 Lecture 4a. Optimal unemployment insurance. LS 22.

4.21 Lecture 4b. Macro with heterogeneity. Huggett (1993).

• Aiyagari (1994), Krusell and Smith (1998)

4.28 FINAL EXAM

Midterm: Monday 3.29, due 11:59pm Tuesday 3.30 (solution)

Final: Wednesday, 4.28, due 11:59pm Thursday 4.29 (solution)

Due dates listed in bold red.

3.12 PS1 (solution)

3.26 PS2 (solution)

4.16 PS3 (solution)

4.23 PS4 (solution)