ECON 816 - Advanced Macroeconomic Theory I
Fall 2012
Course Outline
1. Recursive Methods
2. Asset Prices and a Quantitative Application
- Ljungqvist and Sargent (2004) Chapter 13
- Sargent (1987) Chapter 3
- "Asset
Prices in an Exchange Economy", Lucas, R.E. Jr., Econometrica,
46(6) (November 1978) 1429-45.
- "Interest
Rates and Currency Prices in a Two-Country World", Lucas, R.E. Jr., Journal
of Monetary Economics, 10(3) (January 1982) 335-59.
- "The
Equity Premium: A Puzzle", Mehra, R. and E.C. Prescott, Journal of
Monetary Economics, 15(2) (March 1985) 145-61.
3. The Basic ``Real Business Cycle'' Model
4. Uninsured Idiosyncratic Risk and Heterogeneity
- Ljungqvist and Sargent (2004), Chapter 16, 17
- Cooley (1985), Chapter 5 (Rios-Rull)
- "The
Risk-Free Rate in Heterogeneous-Agent Incomplete-Insurance
Economies", Huggett, M., Journal of Economic Dynamics and
Control, 17(5-6), (Sept.-Nov. 1993) 953-69.
- "Uninsured
Idiosyncratic Risk and Aggregate Saving", Aiyagari, S.R., Quarterly
Journal of Economics, 109(3) (August 1994) 659-84.
- "Income
and Wealth Heterogeneity in the Macroeconomy", Krusell, P. and
A.A. Smith Jr., Journal of Political Economy, 106(5) (October
1998) 867-96.
5. Macroeconomics with Search Frictions in the Labour Market
- Pissarides (2000), Chapters 1,2, and 8
- Shimer (2010)
- Ljungqvist and Sargent (2004), Chapter 26
- "Business
Cycles and Labor Market Search", Andolfatto, D., American Economic
Review, 86(1) (March 1996) 112-32.
- "The
Cyclical Behavior of Equilibrium Unemployment and Vacancies",
Shimer, R., .American Economic
Review, 95(1) (March 2005) 25-49.
- "The
Cyclical Behavior of Equilibrium and Unemployment and Vacancies
Revisited", Hagedorn, M. and I. Manovskii, American
Economic Review, 98(4) (September 2008) 1692-1706.
-
"Labour-Market
Matching with Precautionary Savings and Aggregate Fluctuations",
Krusell, P., T. Mukoyama, and A. Sahin. Review of
Economic Studies 77 (2010) 1477-1507.
6. A General Framework for Macroeconomic Analysis with Search Frictions
- Nosal and Rocheteau (2011)
-
"New
Monetarist Economics: Models", Williamson, S.D., and R. Wright.
Handbook of Monetary Economics, Volume 3 B.M. Friedman and F.H.
Hahn, eds. Elsevier, 2011, Chapter 2 25-96.
-
"New
Monetarist Economics: Methods", Williamson, S.D., and R. Wright.
St. Louis Federal Reserve Review 92(4) (July/August 2010) 265-302.