Day 0 Study Problems

 

These four study problems are to be completed in advance of the first day of the course.  Working these problems will provide some basic but important background to the lectures of week 1.

Problem 1: Optimal consumption over time in a simple two period model

Problem 2: Optimal consumption and labor

Problem 3: Asset accumulation and present-value constraints

Problem 4: Optimal consumption over time in a multiperiod setting