Economics 879: An Introduction to Dynamic Economics

                          Fall 2007

                    Instructor: Rody Manuelli

    Administrative Details

    Office: 6448A Social Science
    Phone: 263-3877
    email: manuelli@ssc.wisc.edu
    Office Hours : Monday 10:15-11:45

    Course Materials

    • Syllabus (pdf)
    • Problem Set 1 ()
    • Problem Set 2 ()
    • Problem Set 3 ()
    • Basic Probability Slides (pdf)
    • Nancy Stokey's Notes (click)
    • The Value of Flexibility in Sequencing Growth Investments (pdf)
    • Strategic Debt Service (pdf)
    • Menu Costs and Phillips Curves (pdf)
    • Job Matching and the Wage Distribution (pdf)
    • Asset Prices and Exchange Rates (pdf)
    • Financing of Innovation: Learning and Stopping (pdf)
    • Overconfidence, Short Sales Constraints, and Bubbles (pdf)
    • A Stochastic Optimal Control Approach to International Finance and Foreign Debt (pdf)
    • Can Greater Uncertainty Hasten Investment? (pdf)
    • Notes on Stochastic Growth Models (pdf)
    • A Theory of Takeovers and Disinvestment (pdf)
    • The Strategic Exercise of Options: Development Cascades and Overbuilding in Real Estate Markets (pdf)
    • Generalizing the Permanent Income Hypothesis: Revisiting Friedman's Conjecture on Consumption (pdf)
    • Necessity of Transversality Conditions for Infinite Horizon Problems (pdf)
    • Vintage Capital and Inequality (pdf)
    • The Value of Waiting to Invest (pdf)
    • An Equilibrium Model of Wealth Distribution (pdf)
    • By Force of Habit: A Consumption Based Explanation of Aggregate Stock Market Behavior (pdf)
    • Time-Varying Risk Aversion and Asset Prices (pdf)
    • Fixed Income Pricing (pdf)
    • Risk, the Financial Market and Macroeconomic Equilibrium (pdf)


    Important Dates

    • No class : November 13 and November 15.