Lecture notes for Macroeconomics I, 2004

Lecture notes for Macroeconomics I, 2004 Per KrusellPlease do NOT distribute without permission!Comments and suggestions are 1 IntroductionThese Lecture notes cover a one-semester course. The overriding goal of the course isto begin provide methodological tools for advanced research in Macroeconomics . Theemphasis is on theory, although data guides the theoretical explorations. We build en-tirely on models with microfoundations, , models where behavior isderivedfrom basicassumptions on consumers preferences, production technologies, information, and so is always assumed to be rational: given the restrictions imposed by the primi-tives, all actors in the economic models are assumed to maximize their studies emphasize decisions with a time dimension, such as variousforms of investments. Moreover, it is often useful to assume that the time horizon isinfinite. This makes dynamic optimization a necessary part of the tools we need tocover, and the first significant fraction of the course goes through, in turn, sequentialmaximization and dynamic programming.

subject of the discussion later on. ... the stochastic process for the endogenous 8. ... use it for much simpler stochastic processes in the context of asset pricing. One element of stationarity in this case is that there will be a smallest compact set of capital stocks

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  Macroeconomics, Lecture, Notes, Processes, Subject, 2004, Stochastic, Stochastic processes, Lecture notes for macroeconomics i

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