F. A. Q. Section

On this page, I will post questions and answers that arise during the course. A fruitful form of communication, if you have problems with some of the curriculum, is to e-mail me the problem/question. First, one often solves the issue by oneself by formulating it in writing. Secondly, by writing me an e-mail question, I can provide a much clearer answer than is usually the case in verbal exchange. Finally, when everything is written down, one can make the issue available to all students. This is valuable, as it is quite likely that fellow students have had similar problems with the issue. Therefore, feel free to e-mail questions. I will then make the question and answer publicly available here for everyone's benefit. Of course, your name will not be mentioned (unless you demand so); hence, there is nothing to lose by posing a "silly question" (and by the way: there is no such thing as a "silly question").


April 29:
Q: In the slides of April 25 on the New-Keynesian model, we get three first-order conditions for household behavior on page 9. How are these computed, and how would one compute them with dynamic programming?
A: This note shows how it is done.