Macro II (Econ 606)
Tuesday / Thursday 4.15-5.30, ICC 116
Office Hours: ICC 553, Weds 2-3pm and by appointment
TA: Alejandro Badel
Course Description: This will be a pretty standard first-year macro course. In teaching first-year macro, some people focus more on theory, others more on calibration and measurement, others on numerical solution methods. A typical macroeconomic research paper has to address each element satisfactorily in order to be publishable, and I will therefore spend some time on each.
Goals: By the end of the class, you should understand:
We will almost exclusively focus on economies in which agents are infinitely-lived and time is discrete. I won’t say much about economic growth or monetary and fiscal policy (you discussed these topics to some extent with Prof. Diba) and I won’t say much about a range of potentially important frictions, such price stickiness, limited information, or enforcement constraints
Recursive Macroeconomic Theory, 2nd Edition, Ljungqvist and Sargent
Methods in Economic Dynamics, Stokey and Lucas with
Frontiers of Business Cycle Research, Cooley ed.
Theory, (notes), Dirk Krueger,
Hetoergeneity in Macroeconomics, (notes),
Various articles, to be determined