Economics | Theory of Income and Employment II
E622 | 1659 | von Furstenberg


Prerequisites: E522, calculus, and linear algebra

General description of the course

Theory of aggregation, index construction, and rational-expectations
modeling.  The welfare cost of instability in the price level,
employment, and consumption.  The optimal policy responses to supply
and demand shocks under various information structures and contract
arrangements.  Optimal production, consumption and investment
decisions, and long-term accumulation and economic growth.  Real
business cycles and money, credit, asset-market, and fiscal impulses
and conditions contributing to business fluctuations. Macroeconometric
models and time series studies of the empirical evidence.