|Problem set 1||
Stochastic growth model
Wealth effects in a model with habit formation
|Christiano, Lawrence, Cosmin Ilut, Roberto Motto, and Massimo Rostagno. "Monetary Policy and Stock Market Boom-Bust Cycles." European Central Bank Working Paper No. 955, October 2008. ( PDF - 1.6MB)||
|Problem set 2||Imperfect information on technology||
Angeletos, George-Marios, and Jennifer La'O. "Noisy Business Cycles." Mimeograph, Department of Economics, Massachusetts Institute of Technology, November 2009. Also available as National Bureau of Economic Research Working Paper No. 14982, May 2009.
Woodford, Michael. "Imperfect Common Knowledge and the Effects of Monetary Policy." Chapter 1 in Knowledge, Information, and Expectations in Modern Macroeconomics: In Honor of Edmund S. Phelps. Edited by Philippe Aghion, Roman Frydman, Joseph Stiglitz, and Michael Woodford. Princeton, NJ: Princeton University Press, 2003, pp. 25-58. ISBN: 9780691094854.