This directory contains MyST Markdown computational notebooks that serve as companions to the lecture slides. Each notebook provides detailed derivations, Python implementations, and exercises.
Contents¶
| File | Topic |
|---|---|
consumption_two_period.md | The Fisher two-period consumption problem, CRRA utility, Fisherian separation, and the labor supply puzzle |
olg_extra.md | The Diamond OLG model: competitive equilibrium, social planner, Golden Rule, and dynamic efficiency |
envelope_crra.md | The envelope condition, multiperiod Euler equation, and the perfect foresight CRRA consumption model |
random_walk_cons_fn.md | Hall’s random walk proposition, the permanent income hypothesis, and MPCs out of permanent vs transitory shocks |
advanced_consumption.md | Habit formation, durable goods, and quasi-hyperbolic discounting (Laibson) |
risk_and_consumption.md | CRRA with risky returns, CARA with income risk, and Campbell-Mankiw time-varying interest rates |
investment_qmodel.md | Firm dynamic optimization under convex adjustment costs, derivation of the investment Euler equation, and numerical solutions to the Abel-Hayashi marginal model |
Libraries¶
The notebooks demonstrate the use of:
NumPy for numerical computation
SciPy for optimization (root-finding with
brentq)Matplotlib for visualization
SymPy for symbolic derivations
pandas for tabular summaries
Running the Notebooks¶
See the Getting Started section in the root README for initial setup.
To build the notebooks:
uv run myst build --executeTo run interactively in JupyterLab:
uv run jupyter labThen right-click any .md file and select Open With > Notebook.