Course: Consumption and Savings (5301-611)

Persons:

• Prof. Dr. Alfonso Sousa-Poza (verantwortlich)

Type of Course:

lecture with seminar

In-Class Hours Per Week:

2

Contents:

This course aims at giving the students an in depth perspective on the way consumers make decisions in a dynamic setting. It is composed of two parts:

(i) Part I - Lectures: The first part of the course will begin with 7 lectures. These lectures begin by taking a look at the life-cycle consumption and savings decision. Of particular relevance are saving for retirement, the role of future earnings, credit market imperfections, and the role of uncertainty. The way we save and consume influences economic growth, fiscal policy and capital accumulation - topics that will be addressed in the framework of neoclassical growth theory. The course will then go on to examine the motivations for, and implications of, financial transfers between parents and their children, as well as investments by parents in their children´s human capital. Determining what motivates these transfers and investments is crucial to understanding the implications of various government policies.

(ii) Part II - Paper discussions: The second part of the course (blocked at the end of the semester) will focus on original journal contributions, both theoretical and empirical, that deal with specific issues covered in the lectures. The aim of this second part is to enhance students ability to understand original journal articles and position them in the appropriate theoretical framework. Stated somewhat differently: to move beyond well-prepared textbooks and into the realm of (often) condensed, complex, and specific research.

Literature:

Part I of the course will be based on William A. Lord´s 'Household Dynamics: Economic Growth and Policy', Oxford University Press (2002).

Location:

Hohenheim

Remarks:

Lectures and presentations will be held in English. Further information on Ilias: https://ilias.uni-hohenheim.de/goto.php?target=crs_783465&client_id=UHOH

Module:

• 5301-610 Consumer Economics (compulsory)