EC171 FALL SEMESTER 2012 SCHEDULE
This is a tentative schedule, subject to adjustment as the term evolves.
The official version is the one posted to http://people.bu.edu/azs/teaching/ec171/schedule.html
Date Class Number Subject Readings Assignment
Part 1: Introducing The Life-Cycle Model and Consumption Smoothing  
TUE 9/4 1 Course Overview and Administration
Measuring Financial Health
PLE Intro, mod 1
GAFL ch 1, 2
HW1: Estimate Your Human Capital, due 9/6
THU 9/6 2 Your Human Capital PLE mod 2
GAFL ch 3, 4
         
TUE 9/11 3 Introducing the Life-Cycle Model
Consumption Smoothing
Example: consumption-smoothing.xls
PLE mod 3
Excel Tutorial Videos:
Spreadsheet Basics
Editing Data, Formatting
Arithmetic
THU 9/13 4 Consumption Smoothing (continued)
Borrowing and Borrowing Constraints
Example: life-cycle-model-80-periods.xls
PLE mod 3 HW2: Life-Cycle Model in Excel, due THU 9/20
         
TUE 9/18 NO LECTURE - ROSH HASHANNA
THU 9/20 QUIZ 1
Part 2: Understanding Interest and Inflation    
THU 9/20 5 Thinking in Present Value
Example FV and PV example.xls
PLE mod 4 HW3: Present and Future Values, due 9/25
         
TUE 9/25 6 Inflation and Inflation Protection
chg-in-prices.xls
free-cars-for-life.xls
PLE mod 4
THU 9/27 7 Loans and Loan Payments
Examples: pv-annuity.xls
Examples: loan-pmt-example.xls
Examples: credit-card-example.xls
PLE mod 4 HW4: Calculating Payments, due 10/2
         
TUE 10/2 8 The Life-Cycle Model in Present Value
Example: life-cycle-model-80-periods-with-r.xls
PLE mod 5
THU 10/4 QUIZ 2
Part 3: Incorporating Taxes, Benefits, and Borrowing Constraints into the Life-Cycle Model  
THU 10/4 9 Dealing With Uncle Sam PLE mod 6
GAFL ch 9
TUE 10/9   MONDAY SCHEDULE, NO LECTURE PLE module 6, pp. 130-134 HW5: Valuing Social Security,
due FRI 10/12 at 12pm by email
THU 10/11 10 Socials Security Benefits
PLE module 6, pp. 135-146
TUE 10/16 11 Smoothing Consumption in a World With Taxes
Example: cons-smooth-with-taxes-starter.xls
Example: cons-smooth-with-taxes-complete.xls
Introduce Economic Security Planner
PLE mod 7
STTE ch 3, 5, 6, 8
HW6: Using ESPlanner (part 1), due 10/18
THU 10/18 12 Economic Security Planner (continued)
Borrowing Constraints Revisited
Dynamic Programming
PLE mod 8 HW7: Using ESPlanner (part 2), due 10/23
TUE 10/23 13 Borrowing Constraints and Dynamic Programming (continued)
PLE mod 8
THU 10/25   QUIZ 3    
Date Class Number Subject Readings Assignment
Part 4: Using the Life-Cycle Model to Answer Life's Questions      
THU 10/25 14 Introducing Applied Life-Cycle Economics
Investing in Human Capital
PLE mod 9 HW8: Is College Worth It
         
TUE 10/30 15 Should You Get Married?
Equitable Divorce
PLE mod 10
THU 11/1 16 Where Should You Live?
Exmaple: where to live.xls
How to Buy Your House
Example: mortgage-PITI-calculator.xls
PLE mod 9, 11 HW9: Buy or Rent Your Housing?, due SUNDAY 11/4
         
TUE 11/6 17 Why You Should Own Your House PLE mod 11 Term Paper Assigned, due 11/29
THU 11/8 18 Saving for Retirement PLE mod 12
GAFL mod 6
STTE ch 17, 18, 19
TUE 11/13 QUIZ 4
Part 5: Wealth and Risk Management      
TUE 11/13 19 Risk and Risk Management PLE mod 13, pp 1-5
THU 11/15 20 Protecting Your Human Capital
life-insurance-needs.xls
PLE mod 13, pp 6-21
GAFL ch 8
STTE ch 32
         
TUE 11/20 21 How Not To Invest In Stocks PLE mod 14, pp 1-9
GAFL ch 5
THU 11/22 THANKSGIVING RECESS, NO CLASS
         
TUE 11/27 22 Stocks for the Long Run PLE mod 14, pp 10-19
STTE ch 21, 22
THU 11/29 23 The Truth About Stocks
Monte Carlo Simulations
Example: Monte Carlo Simulation
PLE mod 14, pp 20-27
STTE: ch 31
Myth of Time Diversification
Watch Zvi Bodie's videos.
Term Paper Due
         
TUE 12/4 24 The Sequence of Returns
Example: Simulated Stock Returns.xls
Upside Investing [ppt slides]
PLE mod 14, pp. 28-29
THU 12/6 QUIZ 5
Part 6: The Rest of Your Financial Life      
THU 12/6 25 Managing Your Cash Flow
Who Can You Ask For Help

Example: Spending Plan.xls
PLE mod 15
GAFL: ch 4
         
TUE 12/11 26 Exam Review
Course Summary and Your Next Steps
TUE 12/18 EXAM EC171 Exam 12:30-2:30pm @ GCB209