Course purpose: continue building a base for understanding and doing macroeconomic research, emphasizing theory and associated quantitative applications.
TA sessions: will be taught by Karin Kinnerud and Markus Karlman. 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.
I will publish slides here for the classes as we go along. They will be similar to previous years.
More to come
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)
· Prescott, E., “RBC Methodology and the Development of Aggregate Economic Theory”, Chapter 22 in Handbook of Macroeconomics. Vol 2B (Especially section 1-3).(PDF)
· Stock, J., and M. Watson. "Vector Autoregressions." JEP 15, no. 4 (Fall 2001): 101-115. (PDF)
J., and M. Watson. "Business Cycle Fluctuations in
· 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)
Kydland and Edward Prescott’s Contribution to Dynamic
Macroeconomics." Advance Information on the Bank of
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)
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)