Advanced Macroeconomics, Economics 521.2 2014
. New items in red.
Contact Information
Course Materials
- Exercise on continous time FTPL with corridor policy. Due Wednesday, 11/26.
- Notes on random Lagrange multipliers, transversalityLecture slide version
- Notes on random Lagrange Multipliers, text version, with more detail.
- Notes for a lecture on the "Simple Model..." paper (updated and corrected discussion of uniqueness with constant M)
- Exercise on Rational Inattention. Due Wednesday, December 10.
- Comment on why FOC solutions may apparently not be optimal
- Code to solve the exercise. Running DiscFP() (with costs as y, price as x, alpha as the inverse of information cost, and riexU() as the U function
produces a solution to the FOC's. This approach provides very accurate solutions, but can easily converge to a solution with fewer points of support
for the decision (i.e. prices) than in the optimal solution. It should be possible to automatically detect such a false convergence, but the code does not
do so as it is. The DiscObjXnoD() function includes commented-out lines that calculate an analytic derivative, which is not used in this fixed-point iteration approach.
- Lecture notes on RI.
- Slides including discussion of the static info-constrained decision problem
- The section of these slides on the static information-constrained decision problem was used in lecture, though the slides include
additional material as well.
- Takehome exam