Course Description
<DIV class=bodycopy>This course covers issues in the theory of consumption, investment and asset prices. We lay out the basic models first, and then examine the empirical facts that motivate extensions to these models.</DIV>
<DIV class=bodycopy> </DIV>
<DIV class=bodycopy>This course covers issues in the theory of consumption, investment and asset prices. We lay out the basic models first, and then examine the empirical facts that motivate extensions to these models.
<P>Lecture classes
Two sessions / week
1.5 hours / session</P>
<P>TA sessions
One session / week
1.5 hours / session</P>
<P>Office hours are by appointment, I am quite flexible regarding times. Also, please email me any questions that you may have. If possible I will email the whole class an answer.

Problem sets will be an important part of the course and an important part of the workload. You are encouraged to work on the problem sets in groups but you must turn in your own individual work. You have one week to turn in each problem set. TA sessions will be largely devoted to the solution of the previous week's problem set. In addition, some extra material may be covered by the TA during recitation.</P>
<P>The final grade will be a weighted average of the problems sets (40%) and the final exam (60%). The final exam will be during the time of our last scheduled class.</P>
<P>No book is required but I expect to make use of the following books more than once.</P>
<P>Blanchard, Olivier J., and Stanley Fisher. <EM>Lectures on Macroeconomics</EM>. Cambridge, Mass.: MIT Press, 1989.</P>
<P>Deaton, Angus. <EM>Understanding Consumption</EM>. New York: Oxford University Press, 1992.</P>
<P>Ljungqvist, Lars, and Thomas J. Sargent. <EM>Recursive Macroeconomic Theory</EM>. Cambridge, Mass.: MIT Press, 2000.</P>
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