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ECON G6215 Macroeconomic Analysis I, FALL 2016

Course Content:

1. Introduction to Macro Data


PROBLEM SET 1 Solution, PS1.m, ChainAdd.m, TPOP.xls

2. Real Business Cycle Theory

2.1 Properties and Solution of the Basic RBC Model


PROBLEM SET 2 , Solution, PS2Q1.m, rbcmodel_ps2q2A.m, rbcmodel_ps2q2B.m

2.2 Performance and Some Extensions of the RBC Model

Deadline for group projects: Monday, November 28, 11.40AM

  • Indivisible Labor: Hansen, Gary, 1985, ``Indivisible Labor and the Business Cycle'', Journal of Monetary Economics, 16, 309-27
    David, Vinayak, Sang Hoon, Shogo and Dong Woo
  • Investment Technology Shocks and Variable Capacity Utilization: Greenwood J., Hercowitz Z. and Huffman G., 1988, ``Investment, Capacity Utilization, and the Real Business Cycle'', American Economic Review, 78 (3)
  • Small Open Economy: Mendoza, Enrique, 1991, ``Real Business Cycles in a Small Open Economy'', American Economic Review, 81 (4)
  • Business Cycles in a Small Open Economy Isabel Correia, Joao C. Neves and Sergio Rebelo, 1995, ``Business Cycles in a Small Open Economy'', European Economic Review 39.
    , Adrien, Yifeng, Lira, Tuomas, and Zhihan
  • Two Country Model: Backus, D., Kehoe, P. and Kydland, F., 1992 ``International Real Business Cycles'', Journal of Political Economy, 100 (4) ,Guy, Solomon, James, Xiao, Sara, and Ou
  • News Shocks: Jaimovich, N. and Rebelo, S., 2007 ``Can News About the Future Drive the Business Cycle'', American Economic Review, 99(4) Miguel, Gaia, Louise, Lucas, Guido, Joseph and Augustina
  • Government Consumption Shocks: Christiano, L.J. and M. Eichenbaum, 1992, ``Current Real Business Cycle Theories and Aggregate Labor Market Fluctuations'', American Economic Review 82(3), 430- 50 ,Josephine, Sandra, Sandra, Claire and Raimundo
  • Adjustment Costs: Cogley T. and Nason J., 1995, ``Output Dynamics in Real-Business-Cycle Models'', The American Economic Review 85 (3)
    ,Motaz, Tatyana, Tam, Megdi, David, Yeji, and Yining
  • Home Production: Benhabib J., Rogerson R., Wright R., 1991, ``Homework in Macroeconomics: Household Production and Aggregate Fluctuations '', Journal of Political Economy 99(6)
  • Habit Persistence and Asset Prices: Boldrin, Christiano and Fisher, 2001, ``Habit Persistence, Asset Returns, and the Business Cycle'', American Economic Review vol. 91(1), Bozidar, Dario, Duarte, Felipe, Haaris, Paul, and Silvio

3. Labor Markets


4. Money and Output: Basic Facts and Flexible Price Models

  • Walsh, Carl E. (2003): Monetary Theory and Policy, Second Edition, MIT Press, chapters 1, 2.3, 3.2 and 3.3


5. Measurement Without Much Theory

5.1 Evidence on Technology Shocks


5.2 Evidence on Monetary Policy Shocks

  • Bernanke, Ben S., and Ilian Mihov (1997): ``Measuring Monetary Policy,'' Quarterly Journal of Economics, vol. CXIII, no. 3, 869-902.

PROBLEM SET 3, CEE1999data.xls , solution, SVARmonetaryFFR.m SVARmonetaryNBR.m

5.3 Evidence on Fiscal Policy Shocks

6. Models of Nominal Rigidities