Course purpose: continue building a base for understanding and doing macroeconomic research, emphasizing theory and associated quantitative applications.
TA sessions: will be taught by Magnus Åhl and Yangzhou Yuan. They will discuss homework solutions as well as analyze a variety of models that complement the material taught in class.
Examination: the final grade is determined based on homeworks (20%) and on an exam (80%).
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.
More to come
Trends vs. Cycles, Co-movements, VAR
· 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
· 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)
"Finn Kydland 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
*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,
· *Gali, Jordi, “Monetary Policy, Inflation and the Business Cycle”, Princeton University Press.
· *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)
· *Corestti, Giancarlo (ed.), (2012), “Austerity, too much of a good thing?”, A VoxEU collection, (PDF)