Macro II part by John Hassler

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.

Slides 1

Slides 2

Slides 3

1. Business Cycles

a) Business Cycle Facts

Trends vs. Cycles, Co-movements, VAR

Readings:

·         Chapter 10:1-2 in Per Krusell’s lecture notes

·         Stock, J., and M. Watson. "Vector Autoregressions." JEP 15, no. 4 (Fall 2001): 101-115. (PDF)

·         Stock, J., and M. Watson. "Business Cycle Fluctuations in U.S. Macroeconomic Time Series." Chapter 1 in Handbook of Macroeconomics. Vol 1A. Edited by J. Taylor and M. Woodford. Amsterdam; New York: North Holland, 1999. ISBN: 0444501568. (PDF)

·         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?

Readings:

·         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)

·         "Finn Kydland and Edward Prescott’s Contribution to Dynamic Macroeconomics." Advance Information on the Bank of Sweden Prize in Economic Sciences, 2004 (PDF)

·         “Empirical Macroeconomics -  Tomas J. Sargent and Christopher A. Sims”, Scientific Information on the Bank of Sweden Prize in Economic Sciences 2011, (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. Amsterdam, Netherlands, New York, NY, North Holland, Netherlands: Elsevier, 1999, pp. 927-1007. ( PDF)

·         *David N. DeJong & Chetan Dave, “Structural Macroeconometrics”, (Second Edition), Princeton University Press, (PDF)

c) New Keynesian models

Model setup and solution,

·         *Gali, Jordi, “Monetary Policy, Inflation and the Business Cycle”, Princeton University Press.