Welcome to AECO 701, the second semester of the first-year Ph.D. macro sequence. This page will host course content. In addition to posting PDFs of the course material, I will make (to the extent possible) LaTeX code and programs available when used in class. Please note: my LaTeX code is generally a mess. I find that exploring code that others have used is far more helpful than most tutorials. Some material I cannot make available online. If this is the case, please email me.

I should note that much of this material is based on lectures developed by the previous instructors of this course: Betty Daniel, Yue Li, and John Jones, in order in which they taught the course (most recent to least recent). I have also linked to other course pages that I found helpful in developing this material below.

Syllabus: link (tex)

Cluster Access: (link)

**Homework** (please submit on the campus cluster. please also email myself and our TA):

## Problem Set 1 Answer Key (link, tex)

- Code (matlab)
- For previous versions: 2021 (Current version) (pdf, tex)

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## Problem Set 2 Answer Key

pdf, tex)

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## Problem Set 3: Linear difference equations and the Contraction Mapping Theorem

## Problem Set 3 Answer Key

- For previous versions: 2021 (Current version) (pdf, tex)

## Problem Set 4: Income fluctuation problem and Guess and Verify method

## Problem Set 4 Answer Key

## Problem Set 5: The RBC Model

## Problem Set 5 Answer Key

- For previous versions: 2021 (Current version) (pdf, tex)

## Problem Set 6: The Heterogeneous Agent Model

## Problem Set 6 Answer Key

- For previous versions: 2021 (Current version) (pdf, tex)

Likely Future Assignments (note that these may change prior to being assigned):

Exam Answer Keys:

## Midterm

## Final

**Slides**:

## Lecture 12: Solution Methods I: Guess and Verify

figures)

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## Lecture 13: The RBC Model

figures)

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## Lecture 14: Midterm!

## Lecture 15: Solution Methods II: Log-Linearization

## Lecture 15: Solution Methods III: Value Function Iteration

## Lecture 16 Supplemental Material: Linearizing Hansen (1985) Model

## Lecture 17: RBC Calibration and Extensions

## Lecture 23: Solving Heterogeneous Agents

## Lecture 25: Diamond-Mortensen-Pissarides

## Lecture 26: Hosios Condition

figures)

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Briefly Resting Lectures:

## Lecture 18: New Keynesian Model I

## Lecture 19: New Keynesian Model II

Programs (I’ll update these as I clean them):

Access the shared folders on the campus cluster or see me/email me directly.

Here are some other great resources for class materials (some links may no longer be working):

Gianluca Violante’s course on quantitative macroeconomics: link

Jesus Fernandez-Villaverde’s slides on computational techniques: link

Makoto Nakajima’s notes on solution techniques: link

Daron Acemoglu and David Autor lectures on labor economics: link

Chris Tonetti’s write-up on income processes: link

Useful review of linearization: link

Here are other useful resources for programming or data:

Tom Sargent and John Stachurski’s website on dynamic macroeconomics in Python and Julia: link

Anaconda Python: link

CEPR SIPP webpage: link

IPUMs CPS webpage: link

Anthony Damico’s website on survey data: link

SIPP FTP and data definitions: link

And other fun material:

Inspirational Teddy Roosevelt Quotes: link