Course purpose: building a base for understanding and doing macroeconomic research, emphasizing theory and associated quantitative applications.
TA sessions: will be taught by firstname.lastname@example.org. He will discuss homework solutions as well as analyze a variety of models that complement the material taught in class.
Preliminary reading list for the part of Macro II given by John Hassler.
Articles and chapters marked with an asterisk (*) may be read less intensively than the others.
I will publish slides here for the classes as we go along.
Trends vs. Cycles, Co-movements, VAR
· Chapter 10:1-2 in Per Krusell’s lecture notes
· Hansen, G and L Ohanian, “Neoclassical Models in Macroeconomics”, Chapter 22 in Handbook of Macroeconomics. Vol 2B (Especially section 1-3).(PDF)
Stock, J., and M. Watson. "Business Cycle
· *Ravn, M. and H. Uhlig, “On Adjusting the Hodrick-Prescott Filter for the Frequency of Observations”, Review of Economics and Statistics, May 2002, v. 84 (PDF)
· *Hassler et al., (1992), “The Swedish Business Cycle: Stylized facts over 130 years.”, Appendix 2-3, IIES Monograph series, No 22. (PDF)
b) The RBC model with endogenous labor supply
Model setup and solution, Calibration, Does it fit the facts?
· Chapter 8+10 in Per Krusell’s lecture notes
· Prescott, E. C. "Theory Ahead of Business Cycle Measurement." Quarterly Review 10, no. 4 (Fall 1986): 9-22. (PDF)
· Prescott, E., “RBC Methodology and the Development of Aggregate Economic Theory”, Chapter 22 in Handbook of Macroeconomics. Vol 2B (Especially section 1-3).(PDF)
and Edward Prescott’s Contribution to Dynamic Macroeconomics." Advance Information
on the Bank of
* “Empirical Macroeconomics - Tomas J. Sargent and Christopher A. Sims”,
Scientific Information on the Bank of
· *Boppart Timo and Per Krusell, "Labor supply in the past, present and future: a balanced-growth perspective”, NBER WP 22215 (PDF)
*King, R., and S. Rebelo.
"Resuscitating Real Business Cycles." Chapter 14 in Handbook of
Macroeconomics. Vol. 1B. Edited by J. Taylor and M. Woodford.
· *David N. DeJong & Chetan Dave, “Structural Macroeconometrics”, (Second Edition), Princeton University Press, (PDF)
c) New Keynesian models
Model setup and solution, applications.
· Gali, Jordi, Chapter 3 in “Monetary Policy, Inflation and the Business Cycle”, Princeton University Press. (PDF)
· *Corsetti, Giancarlo and Gernot Müller, (2015) “Fiscal Multipliers: Lessons from the Great Recession for Small Open Economies”, paper for the Swedish Fiscal Policy Council.(PDF)
· *Gali, Jordi, “Monetary Policy, Inflation and the Business Cycle”, Princeton University Press.
· *Corsetti, Giancarlo (ed.), (2012), “Austerity, too much of a good thing?”, A VoxEU collection, (PDF)