7.A. Pose and solve for the decision rules and the stationary distribution in a model where households have multiple members that have a motive to disagree and where there are exogenous, Markovian shocks to composition. Use a Nash bargaining protocole to arrive to decisions.
7.B. Pose and solve a model of activity choice (entrepreneurial or other).
7.C. State and solve a model where people choose whether to marry or divorce. Pose an additional iid shock to love with continuous domain, and transferable utility and a seduction game to determine whether marriages happen or not.
6.A. Pose a model with health shocks in one of thes that we talked about. Make those shocks Markovian. Solve for the decision rules. Use both discrete and continuous shocks.
6.B. Compute the stationary Distribution of this problem.
6.C. State what would you use the model for and make the case for your choice of shock specification. Why is it a good one?
1.A Fetch and plot US quarterly GDP Employment, Total hours worked, Hours per worker, Hours per adult of working age and Hourse per person not in jail over 18 years of age both from CPS and from the firm survey (see Cooley chapter 1, page 30). Store it in pdf, eps, and emf or wmf formats.
1.B HP filter and plot US quarterly (log) GDP and the series in 1.A. Store it in postcript or pdf. Compute the same table as in the Cooley book for those 4 variables using data up to 2003:4 or later.
1.C Calculate a linear trend and decompose log GDP in the linear trend the hp trend and the hp residual.
1.D Plot the growth rates together with the hp residual and comment the differences.
1.E Compute a VAR of GDP, Total Hours and Labor Productivity and plot the impulse responses. Make sure that you explicitly state what are the identifying assumptions that you make.
Write a routine that linearly interpolates. Apply it by storing the value of exp (x) between 0 and 1. in intervals of .1 and assessing the value by interpolation in intervals of .05. Plot the function and what results from using approximation.
(Parts of Homework 1 of Chapter 5 of Judd's book.) Solve sin 2 p x- 2x=0 using bisection between x _{ 0 } =-5 and x _{ 1 } =5 (If this interval is a bad one change it).
4.A Solve for the assets and consumption of the houeholds in an economy where they live 90 years (assume they are born at 16) and have the wage profile and of American persons. (Find it from somewhere in the literature, later we will compute it from data). Let the agents have standard per period preferences over consumption with risk aversion coefficient of 2, discount rate of 1. and interest rate of 3\%. Plot them. You should use the three methods we discussed in class to solve this problem (if you want you can solve in five year intervals, for which you have to adjust the interest and discount rates). These methods were forward and backward iterations that transform the problem into one equation and one unknown and brute force.
4.B Now make changes in preferences so that the induced profiles for consumption are inversed U-shaped. Plot them too.
4.C Briefly explain the computationally logic that you followed. (I will talk a bit in class for this on TUesday but start now).
There are various types of requirements that are a necessary part of the course, all of which have to be fulfilled.
This course believes drastically in Learning by Doing. To learn the material that we cover requires that students do all the homeworks in a timely manner. Given the way to collect the homeworks, timeliness is automatically recorded. I will look at what is done weekly.
For those that do not register but take the course, I recommend that they do the homeworks. We learn to solve problems by facing them. Learning jointly with others greatly speeds the process.
In any case, the University is to help you learn and become a great economist not to issue grades, so use the course in the way you say it is best for you. If all equal, register so that there is evidence that the course is useful.