PhD Macro Theory

This is the first core course for first-year economics PhD students in macroeconomic theory taught at the University of Florida. 

Part one covers the dynamic programming theory, including dynamic exchange economies, neoclassical growth models,  (practical) deterministic and stochastic dynamic programming, and three applications in asset pricing, consumption-saving, and job search, respectively. Part two covers applications of major topics, including overlapping generation, real business cycles, menu costs and sticky prices, and fiscal and monetary policies. The organization of this course benefits and inherits a lot from other first-year PhD courses taught by Chris Edmond, Dirk Krueger, Eric Sims, and Jón Steinsson.

Syllabus:  2024 Fall

Lecture Slides: GitHub Link

Textbooks:

[AKMM] Azzimonti, Krusell, McKay, and Mukoyama, Macroeconomics

[SLR] Sargent and Ljungqvist, Recursive Macroeconomic Theory

[DK] Dirk Krueger, Macroeconomic Theory

Topics:

Part 1: Dynamic Programming Theory

1. A Simple Dynamic Exchange Economy

2. Concepts of Complete Markets General Equilibrium

3. The Neoclassical Growth Model in Discrete Time

4. Introductions to Dynamic Programming

5. Introductions to Stochastic Dynamic Programming

6. Application 1: Consumption-based Asset Pricing

7. Application 2: Consumption-savings Problems

Part 2: Applications of Some Major Topics

1. Job Search and Matching

2. The Overlapping Generations Model

3. The Real Business Cycles Model

4. Sticky Prices and Menu Costs

5. Fiscal and Monetary Policy