ECON-UB 233
Dave Backus @ NYU
Lab Report #7: Dynamics in Theory and Data
Revised: December 2, 2014
Due at the start of class. You may speak to others, but whatever you hand in should be your
own work.
1. ARMA(1,1) models. Consider the models
1
X
xt =
aj w

ECON-UB 233
Dave Backus @ NYU
Quiz #1
Revised: October 3, 2014
Please write your name below, then complete the exam in the space provided. You may refer
to one page of notes: standard paper, both sides, any content you wish. There are FOUR
questions.
(Nam

ECON-UB 233
Dave Backus @ NYU
Quiz #3
December 2014
Please write your name below. Then complete the exam in the space provided. There are
THREE questions. You may refer to one page of notes: standard paper, both sides, any
content you wish.
(Name and sign

ECON-UB 233
Dave Backus @ NYU
Review for Quiz #2
Revised: November 3, 2014
Ill focus again on the big picture to give you a sense of what weve done and how it ts
together. For each topic/result/concept, I recommend you construct a numerical example
or two

ECON-UB 233
Dave Backus @ NYU
Review for Quiz #3
Revised: December 8, 2014
Ill focus as usual on the big picture. For each topic/result/ concept, I recommend you
construct a numerical example or two to remind yourself how it works.
The topic is dynamics.

ECON-UB 233
Dave Backus @ NYU
Review for Quiz #1
Revised: September 16, 2014
Ill focus on the big picture to give you a sense of what weve done and how it ts together.
Everything is leading up to our central equation, E(mr) = 1, and its many variants.
As

ECON-UB 233
Dave Backus @ NYU
Consumption, Saving, & Portfolio Choice
Revised: September 23, 2014
Another building block for thinking about business cycles and asset returns is what well
call the consumers problem: how an individual might decide between c

ECON-UB 233
Dave Backus @ NYU
Math Tools: Random Variables
Revised: October 4, 2014
Our rst set of math tools is concerned with randomness: how we think about it, how we
use it, and so on. Its an essential idea in macroeconomics and nance in fact in the
w

ECON-UB 233
Dave Backus @ NYU
Two-Period Macroeconomic Models
Revised: October 8, 2014
Our next step is to look at equilibrium prices and quantities in the same two-period setting
we used earlier. The idea is to combine the consumption, saving, and portfo

ECON-UB 233
Dave Backus @ NYU
Risk & Risk Aversion
Revised: October 8, 2014
Risk and risk aversion are fundamental building blocks for thinking about how risk is priced
in markets. We say people are risk averse if they prefer a sure thing to a risky outco

ECON-UB 233
Dave Backus @ NYU
Fundamentals of Asset Pricing
Revised: November 24, 2014
Darrell Du e notes that the 1970s were a golden age for asset pricing theory, but suggests
that the period since has been a mopping-up operation (Du e, Dynamic Asset Pr

ECON-UB 233
Dave Backus @ NYU
Lab Report #3: Consumption, Risk, & Portfolio Choice
Revised: September 25, 2014
Due at the start of class. You may speak to others, but whatever you hand in should be your
own work. Please include your Matlab code.
Solution:

ECON-UB 233
Dave Backus @ NYU
Lab Report #1: Moments & Cumulants
Revised: September 6, 2014
Due at the start of class. You may speak to others, but whatever you hand in should be your
own work. Use Matlab where possible and attach your code to your answer

ECON-UB 233
Dave Backus @ NYU
Lab Report #2: Sums, Mixtures, & Certainty Equivalents
Revised: September 18, 2014
Due at the start of class. You may speak to others, but whatever you hand in should be your
own work. Use Matlab where possible and attach you

ECON-UB 233
Dave Backus @ NYU
Lab Report #4: Asset Pricing Fundamentals
Revised: October 20, 2014
Due at the start of class. You may speak to others, but whatever you hand in should be your
own work. Please include your Matlab code.
Solution: Brief answer

ECON-UB 233
Dave Backus @ NYU
Lab Report #5: Returns & Risk Premiums
Revised: October 31, 2014
Due at the start of class. You may speak to others, but whatever you hand in should be your
own work. Please include your Matlab code.
Solution: Brief answers f

ECON-UB 233
Dave Backus @ NYU
Lab Report #6: Options & Volatility
Revised: November 6, 2014
Due at the start of class. You may speak to others, but whatever you hand in should be your
own work. Please include your Matlab code.
Solution: Brief answers foll

ECON-UB 233
Dave Backus @ NYU
Quiz #2
November 2014
Please write your name below. Then complete the exam in the space provided. There are
THREE questions. You may refer to one page of notes: standard paper, both sides, any
content you wish.
(Name and sign