Advanced Macroeconomic Techniques

316-406, honours/masters/PhD, University of Melbourne, Semester 2, 2004

This material is no longer actively maintained. Notes and programs may contain typos or more serious mistakes. Use at your own risk.

Syllabus

Note 1a: Solow model
Note 1b: Linear differential and difference equations
Note 1c: Linearizations
Note 2a: Optimal growth model
Note 2b: Systems of difference equations
Note 3a: Dynamic programming and the growth model
Note 4a: Stochastic difference equations
Note 4b: Markov chains
Note 4c: Computations and simulations for Markov chains
Note 5a: Stochastic growth model
Note 5b: Stochastic dynamic programming
Note 5c: Numerical dynamic programming
Note 6a: Consumption-based asset pricing
Note 6b: Equity premium puzzle
Note 7a: Incomplete markets
Note 7b: Aiyagari’s model

Matlab introduction
Markov Simulations
Markov Chain Example
Stochastic GDP Growth Example
Uhlig’s solve.m
Uhlig’s options.m
Dynamic Programming Example

Problem Set ‘Zero’: Solutions, Matlab Code
Problem Set #1: Solutions, Matlab Code
Problem Set #2: Solutions, Matlab Code
Problem Set #3: Solutions, Matlab Code
Problem Set #4: Solutions, Matlab Code
Problem Set #5

Midsemester Exam Sample Questions
Midsemester Exam: Solutions