Advanced Macroeconomic Theory 2400-ZEWW975
1) Equilibrium with complete markets. Arrow-Debreu equilibrium, sequential equilibrium. Pareto optima and welfare theorems. Social value accounting.
2) Dynamic programming under certainty.
3) Markov processes and stochastic difference equations.
4) Stochastic dynamic programming.
5) Recursive competitive equilibria.
6) Asset pricing theory,
7) Bewley models.
8) Financial frictions, pecuniary externalities, constrained efficiency.
9) Rational expectations revisited. Models with incomplete information and coordination failures.
Type of course
Course coordinators
Learning outcomes
Students are familiar with the foundations of dynamic macroeconomic theory.
Upon completion of the course, they will be able to use tools and methods prevalent in modern macroeconomics.
Assessment criteria
Problem sets, written final exam
Additional information
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