## Program

### Updated A.Y. 2022-2023

**1. Introduction to growth theory:** The Solow model in discrete and in continuous time. Transitional dynamics. Sustained growth. Technological progress. Growth accounting and empirical evidence.

**2. Foundations of neoclassical growth:** The representative household, and the Euler equation. Competitive equilibrium. Welfare Theorems. Optimal Growth. An introduction to dynamic programming theorems. Steady-state equilibrium and transitional dynamics. Technological change, policy and comparative dynamics.

**3. Asset prices and consumption:** An introduction to dynamic programming under uncertainty. The stochastic Euler equation. Optimal saving, intertemporal substitution and wealth effect. Hall’s random walk theory of consumption. Precautionary saving and prudence. Lucas’ model of asset prices. The Modigliani-Miller Theorem. Government debt and Ricardian equivalence.prudence. Lucas’ model of asset prices. The Modigliani-Miller Theorem. Government debt and Ricardina equivalence.