Professor Bent Sorensen

Macro II

Spring 2022

I do not have set hours, but you can email or approach me any time (except before classes Mon-Wed)

TA: Angelo Dos Santos, Email: angelofgdsantos@gmail.com

TA Sessions: Friday 9am-10.30amNOTE: The class on Wednesday 4/20 will be online as I am out of town.

I plan to have no midterm (by popular demand).

FINAL (for the second part): Wednesday May 4 in the usual class slot. No class on May 2, instead review session on May 3, 1-3 in usual class room.)

**Notes (I may not get to all of them):**

Short Introduction to Time Series

Permanent Income and Measurement Error in Consumption Functions

The general Euler Equation and Hall's version of the PIH

Excess Sensitivity, Rule-of-Thumb Consumers and IV estimation

The Impact of Income Shocks on Consumption and `Excess Smoothness' of Consumption (updated April 2019)

The Impact of Interest Rates on Consumption (2022 update)

The CAPM Model

Efficient Markets

The Consumption CAPM

The Equity Premium Puzzle

The Term Structure of Interest Rates

Notes on Obstfeld-Rogoff Chapter 5

Note on Market Spanning (updated to be more rigorous 2022)

Ostergaard, Sorensen, and Yosha, JPE 2002

Astrubali, Sorensen, and Yosha, QJE 1996

**Homework**

__Assignment __
__Due__

Homework 1 Wed 3/30

Homework 2 Fri 4/8

Homework 3 Fri 4/15

Homework 4 Fri 4/22

Homework 5 Fri 4/29