EC171 Schedule and Assignments, Spring 2012

Week Date Class # Subject Readings Assignment
Part 1: When will I be wealthy? How should I spend my wealth over my lifetime?  
1 TUE 1/17 1 Course Overview and Administration
Measuring Financial Health
GAFL: ch 1, 2
SOPF: Intro, mod 1
THU 1/19 2 Introducing the Life-cycle Model SOPF: mod 2, pp1-4
GAFL: ch 3, 4
HW1: Estimate Your Human Capital, due 1/24
         
2 TUE 1/24 3 Consumption Smoothing
Example: consumption-smoothing-80-periods.xls
SOPF: mod 2, pp4-9, append
STTE: ch 1, 2
Excel Tutorial Videos:
Spreadsheet Basics
Editing Data, Formatting
Arithmetic
THU 1/26 4 Maximizing Economic Happiness
Borrowing and Borrowing Constraints
Example: consumption-smoothing-80-periods-w-borrowing.xls
SOPF: mod 2, pp10-16
         
TUE 1/31 QUIZ 1
Part 2: Number Crunching: How Much and When?    
2 TUE 1/31 5 Thinking in Present Value
Example: pv-fv-examples.xls Example: additive-pvs.xls
FE, ch 4
Excel Tutorial Videos:
Spreadsheet Basics
Editing Data, Formatting
Arithmetic
HW2: Present and Future Values, due TUE 2/7
THU 2/2 6 Inflation and Inflation Protection FE, ch 4
SOPF: mod 3
         
3 TUE 2/7 7 The Life-cycle Model in Present Value
Example: consumption-smoothing-with-r.xls
SOPF: mod 2, pp17-23
THU 2/9 8 Valuing Strings of Payments
Calculating Payments
Example: pv-annuity.xls
Example: pmt-example.xls
Example: revolving-loan.xls
FE, ch 4
HW3: Calculating Payments, due THU 2/16
           
TUE 2/14 9 Dealing With Uncle Sam GAFL: ch 9
SOPF: mod 4, pp. 1-9
THU 2/16   QUIZ 2    
Part 3: Economics is Here to Help You! (some heavy lifting tools)    
6 THU 2/16 10 Smoothing Consumption in a World With Taxes
Example: cons-smooth-with-taxes.xls (template)
Example: cons-smooth-with-taxes-complete.xls
SOPF: mod 4, pp. 10-19
         
TUE 2/21 MONDAY SCHEDULE, NO CLASS ON TUE 2/21 Watch this video: Introducing ESPlanner
THU 2/23 11 Review: Smoothing Consumption with Taxes
Discuss Borrowing Constraints and Smoothing Consumption
Example: cons-smooth-with-taxes-complete2.xls
Introduce Economic Security Planner
SOPF: mod 5
STTE: ch 3, 5, 6, 8
HW4: Using ESPlanner (part 1), due TUE 2/28
         
7 TUE 2/28 12 Discuss ESPlanner Outputs, Examples
Borrowing Constraints Revisited
SOPF: mod 5
HW5: Using ESPlanner (part 2), due TUE 3/6
THU 3/1 13 Smoothing Consumption under Borrowing Constraints
Dynamic Programming
SOPF: mod 6
         
8 TUE 3/6 14 Borrowing Constraints (continued)
Quiz 3 review, Q&A
SOPF: mod 6
         
THU 3/8 QUIZ 3
Week Date Class # Subject Readings Assignment
Part 4: Applied Lifecycle Economics    
THU 3/8 15 Introducing Applied Life-cycle Economics SOPF: mod 7, pp 1-8 HW6: Is College Worth It, due 3/20
         
TUE 3/13 SPRING BREAK - NO CLASS
THU 3/15 SPRING BREAK - NO CLASS
         
9 TUE 3/20 16 Investing in Human Capital
Should You Stay In College?
Debt-Free U: Ch 1-4
SOPF: mod 8
THU 3/22 17 How should you pay for college?
Student loans
Term Paper Assigned, due 4/19
         
10 TUE 3/27 18 Where Should You Live?
How To Buy Your House
mortgage-PITI-calculator.xls
GAFL: ch 7
SOPF: mod 7, pp 9-13
SOPF: mod 10, pp 1-6
STTE: 11, 12, 13
HW7: Where to Live, due 3/29
THU 3/29 19 Why You Should Own Your House GAFL: ch 7
SOPF: mod 10, pp 7-22
STTE 14 
         
11 TUE 4/3 20 Should You Get Married?
Should You Get Divorced?
Lecture Slides
STTE: ch. 24, 25, 26
         
THU 4/5 QUIZ 4
Part 5: Wealth and Risk Management    
THU 4/5 21 Selecting Retirement Acounts GAFL: ch 6
SOPF: mod 11
STTE: ch 17, 18, 19
HW8: Valuing Social Security, due 4/10
         
12 TUE 4/10 22 Risk and Risk Management
Protecting Your Human Capital
Lecture Slides
STTE: ch 32
FE: ch 10
GAFL: ch 8
THU 4/12 23 Investing in Stocks
How Not To Invest In Stocks
Lecture Slides
GAFL: ch 5
         
13 TUE 4/17 24 Stocks for the Long Run Lecture Slides
STTE: ch 21, 22
Article: Stocks for the Long Run
THU 4/19 25 The Truth About Stocks Lecture Notes
STTE, ch 21, 22
WFI, ch 7, 8
Myth of Time Diversification
Watch Zvi Bodie's videos.
Term Paper Due
         
14 TUE 4/24 26 Upside Investing
Lecture Notes A Retirement Program for the Risk-Averse
         
THU 4/26 QUIZ 5
Part 6: Getting Started on Your Financial Life    
THU 4/26 27 Where to Stash Your Cash
Who Should You Ask for Help
GAFL: ch 4
         
15 TUE 5/1 28 Your Questions/Discussion
The Rest Of Your Financial Life
Exam Review
16 WED 5/9 FINAL EXAM 3-5pm @ SCI 113