EC171 SPRING SEMESTER 2013 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    
THU 1/17 1 Course Overview and Administration
Measuring Financial Health
Example: tommy and gina.xls
PLE Intro, mod 1
GAFL ch 1, 2
Financial Health
TUE 1/22 2 Your Human Capital PLE mod 2
GAFL ch 3, 4
Human capital calculator
THU 1/24 3 Introducing the Life-Cycle Model
Consumption Smoothing
PLE mod 3, pp.41-55 Life-cycle Model (part 1)
TUE 1/29 4 Consumption Smoothing (continued)
Borrowing and Borrowing Constraints
PLE mod 3, pp.56-61 Life-cycle Model (part 2)
THU 1/31 QUIZ 1
Part 2: Understanding Interest and Inflation    
THU 1/31 5 Thinking in Present Value
PLE mod 4, pp.65-75 Future Value and Present Value
TUE 2/5 6 Inflation and the Real Rate of Return
Present Value of Annuities
PLE mod 4, pp.76-82 Inflation and Annuities
THU 2/7 7 Loans and Loan Payments
PLE mod 4, pp.82-91 Loans and Payments
TUE 2/12 8 The Life-Cycle Model in Present Value PLE mod 5 Life-Cycle Model with Interest
THU 2/14 QUIZ 2
Part 3: Incorporating Taxes, Benefits, and Borrowing Constraints into the Life-Cycle Model  
THU 2/14 9 Dealing With Uncle Sam: Taxes PLE mod 6, pp. 105-113
GAFL ch 9
Personal Tax Calculations
TUE 2/19 10 Dealing With Uncle Sam: Benefits PLE mod 6, pp. 114-117 Valuing Social Security
THU 2/21 11 Smoothing Consumption in a World With Taxes PLE mod 6, pp. 118-127 LC Model with Taxes and Interest
TUE 2/26 12 Introduce Economic Security Planner PLE mod 7
STTE ch 3, 5, 6, 8
Using ESPlanner (part 1)
THU 2/28 13 Borrowing Constraints Revisited
Dynamic Programming
PLE mod 8 Using ESPlanner (part 2)
TUE 3/5 QUIZ 3
Date Class Number Subject Readings Assignment
Part 4: Using the Life-Cycle Model to Answer Life's Questions    
TUE 3/5 14 Introducing Applied Life-Cycle Economics
Investing in Human Capital
PLE mod 9, pp. 188-195 Is College Worth It
THU 3/7 15 Should You Stay in College?
How Should You Pay for College?
PLE mod 9., pp 196-199 Student Loan Repayment
TUE 3/12   SPRING BREAK -- NO CLASS    
THU 3/14 SPRING BREAK -- NO CLASS
TUE 3/19 16 Should You Get Married?
Equitable Divorce
PLE mod 10 Marriage
THU 3/21 17 Where Should You Live?
How to Buy Your House
PLE mod 9, pp 199-203,
mod 11, pp. 226-231
Where to Live
TUE 3/26 18 Why You Should Own Your House PLE mod 11., pp. 232-249. Homeownership
THU 3/28 19 Saving for Retirement PLE mod 12
GAFL mod 6
STTE ch 17, 18, 19
Term project assigned, due TUE 4/23
Selecting Retirement Accounts
TUE 4/2 WRITTEN QUIZ 4
Part 5: Wealth and Risk Management    
TUE 4/2 20 Risk and Risk Management PLE mod 13., pp. 274-282 Risk Assessment
THU 4/4 21 Protecting Your Human Capital PLE mod 13, pp. 282-290
GAFL ch 8
STTE ch 32
Protecting Your HC
TUE 4/9 22 Introduction to Stock Market Investing
How Not To Invest In Stocks
PLE mod 14, pp. 292-300
GAFL ch 5
Quantifying Stock Performance
THU 4/11 23 Stocks for the Long Run PLE mod 14, pp. 300-308
STTE ch 21, 22
Portfolio Construction
TUE 4/16 24 The Truth About Stocks
Myth Of Time
Diversification

mod 15, pp. 1-9
Watch Zvi Bodie's videos.
Monte Carlo Simulation
THU 4/18 BU MONDAY SCHEDULE -- NO CLASS
TUE 4/23 25 Asset Allocation
The Sequence of Returns
Upside Investing
PLE mod 15, pp. 10-13
Target-date Funds
PLE mod 15 review questions
Asset Allocation
THU 4/25 QUIZ 5
Part 6: The Rest of Your Financial Life    
THU 4/25 26 Your Personal Lifetime Income PLE mod 16/TBA Term Paper Due
TUE 4/30 27 Managing Your Cash Flow
Who Can You Ask For Help

GAFL: ch 4
 
THU 5/2 28 Exam Review
Course Summary and Your Next Steps
THU 5/9 EXAM EC171 Exam 3:00-5:00pm @ SCI 113