Lecture Notes On Solution Methods for Representative Agent Dynamic Stochastic Optimization Problems

These lecture notes sketch a set of techniques that are useful in solving representative agent dynamic stochastic optimization problems. I make no attempt at a systematic overview of the many possible technical choices; instead, the notes present a very specific set of methods and techniques. Associated with these notes is a set of Mathematica programs that solve the problems described in the text. Both text and programs are available on my home page, http://www.econ.jhu.edu/People/Carroll. These notes were originally written for my Advanced Topics in Macroeconomic Theory class at Johns Hopkins University. Department of Economics, Johns Hopkins University, Baltimore, MD 212182685, 410-516-7602 (office), 410-516-7600 (fax).