| LEC # | TOPICS | |
|---|---|---|
| 1 | Introduction to the course | |
| General Equilibrium Modeling with Financial Frictions, With and Without Underlying Tests | ||
| 2 |
Micro-founded macro models Part 1: Occupational choice and limited commitment—theory with micro tests Part 2: Risk-sharing, insurance, and endogenous financial deepening Part 3: Model comparisons | |
| 3 | Growth, inequality, TFP with financial imperfections (featuring limited commitment) | |
| 4 | Growth, TFP, international capital flows: Other frictions in financial intermediation (costly state verification, adverse selection, moral hazard) | |
| Micro Data and Tests of Model Underpinnings | ||
| 5 | Measurement: Financial accounts, economic accounts, NIPA, balance of payments; From households to village economies to national level flow of funds | |
| 6 | Insurance: From village insurance to financial access and targeting to risk instruments in advanced OECD countries | |
| 7 | Capital asset pricing: Idiosyncratic and aggregate risk, mean variance frontiers, lack of insurance among the poor and modern corporations | |
| 8 | Links to the macro literature: Panel data and models of smoothing (exogenous incomplete markets) | |
| 9 | Labor supply: Intensive and extensive margin in villages to families, lotteries, and elasticities in macro | |
| 10 | Barriers to sharing risk (moral hazard, limited commitment): Common methods in village economies | |
| Welfare and the Evaluation of Impact: Reduced Form Econometrics and Structural Parameters | ||
| 11 | Program evaluation: The Thai Million Baht Village Fund | |
| 12 | From reduced-form to structural evaluation: Expanding financial infrastructure and impact | |
| 13 | Discussion, research proposals | |
