Course Meeting Times

Lectures: 2 sessions / week, 1.5 hours / session

Recitations: 1 session / week, 1.5 hours / session

Course Requirements

Problem sets are an integral part of the course. 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 devoted to the solution of the previous week's problem set and some extra material not covered in the lectures.


The final grade will be a weighted average of the problems sets and the final exam. The final exam will be during the time of our last scheduled class.

Problem Sets 30%
Final Exam 70%


1 Intertemporal Preferences and Welfare Costs of Uncertainty Problem set 1 out
2-4 Complete Markets and Pareto Optima

Problem set 1 due in Lec #3

Problem set 2 out in Lec #3

5-6 Asset Pricing: Arbitrage and CCAPM Problem set 2 due in Lec #5
7-9 Precautionary Savings / Income Fluctuations Problem

Problem set 3 out in Lec #7

Problem set 3 due in Lec #9

10 Empirical Evidence, Tests and Quantitative Models

Empirical Evidence, Tests and Quantitative Models (cont.)

Imperfect Insurance with Frictions

Problem set 4 out
12 Imperfect Insurance with Frictions (cont.)
13 Investment with Convex Adjustment Costs / Q-Theory Problem set 4 due
14 Irreversibility, Fixed-Costs and (S, s) Rules