Day 5: Friday

Uncertainty and Asset Pricing

Lecture 9: Markovian uncertainty and recursive equilibrium

* LS, Chapter 7, "Recursive (Partial) Equilibrium"

* LS, Chapter 8, "Equilibrium with Complete Markets"

Lecture 10: Asset pricing: general ideas and log linear benchmarks

* LS, Chapter 13, "Asset Pricing"

* Urban J. Jermann, "Asset pricing in production economies", Journal of Monetary Economics 1998, pdf

Presentation Materials

Lecture 9 (PDF)

Lecture 10 (PDF)