Course purpose: continue building a base for understanding and doing macroeconomic research, emphasizing theory and associated quantitative applications.
TA sessions: will be taught by Gualtiero Azzalini firstname.lastname@example.org. He 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%).
Classes will be held via Zoom
1. Tuesday April 7, 10-12, https://stockholmuniversity.zoom.us/j/639664148
2. Wednesday April 8, 10-12, https://stockholmuniversity.zoom.us/j/385652930
3. Tuesday April 14, 10-12, https://stockholmuniversity.zoom.us/j/752275709
4. Thursday April 16, 10-12 https://stockholmuniversity.zoom.us/j/760190258
5. Friday April 17, 10-12 https://stockholmuniversity.zoom.us/j/373062316
6. Monday April 20, 10-12 https://stockholmuniversity.zoom.us/j/686922819
I will publish slides here for the classes as we go along. They will be similar to previous years.
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.
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)
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, C. Plosser and S. Rebelo, “Production, growth and business cycles: I. The basic neoclassical model”, Journal of Monetary Economics, 1988. (PDF)
· Boppart Timo and Per Krusell, "Labor supply in the past, present and future: a balanced-growth perspective”, Journal of Political Economy 2019 forthcoming, (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)
· Broer, Tobias, Harbo Hansen, Niels-Jakob, Krusell, Per and Öberg, Erik, The New Keynesian Transmission Mechanism: A Heterogenous-Agent Perspective, Review of Economic Studies, 2019, Fortcoming. (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)