Corona: Due to the Corona pandemic, classes will be held on Zoom. I will send out invitations by mail in advance. I encourage all to participate with sound and video. I also hope the class can be interactive despite all of us (at least me) being a novice on this.
Course purpose: building a base for understanding and doing macroeconomic research, emphasizing theory and associated quantitative applications.
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.
1. Monday March 23, 9-12. https://stockholmuniversity.zoom.us/j/126091279
2. Monday March 30, 13-16. https://stockholmuniversity.zoom.us/j/452957968
3. Tuesday March 31, 13-15 https://stockholmuniversity.zoom.us/j/359212760
4. Friday April 3, 13-15 https://stockholmuniversity.zoom.us/j/384583943
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)