G 6612   Adv. Macro Analysis II, Spring 2008

Prof. Stefania Albanesi, Columbia University

 

Syllabus

 

Assignments

Assignment 1 Due 1/30 in class. Solution

Assignment 2. Due 2/7 at recitation. Solution

Assignment 3. Due 2/14 at recitation. Solution

Assignment 4. Due 2/21 at recitation. Solution

Assignment 5. Due 2/28 at recitation. Solution

Assignment 6. Due 3/10 in class. Sample Matlab code here.

 

Handouts

Three Notions of Private Sector Equilibrium

Characterizing Dynamics in the Canonical Growth Model

Introducing Variable Hours in the Canonical Growth Model

Business Cycles and the Labor Market

A Primer on Monetary Models REVISED VERSION!

Slides on Sticky Prices and Limited Participation Models

Necessary and Sufficient Conditions for Household Optimization in Monetary Models

Solving Models with Limited Information

Slides on CEE JPE 2005

Slides on Ramsey equilibrium

 

Practice Midterm Questions

Questions  Solutions

Exam 2007, Solutions

 

Readings

All readings in the syllabus, except for textbook chapters, are available on line from authors’ homepages, from JSTOR or from Columbia Library’s online journal archive, here.

Some of the readings are linked below. Note that a few of the links can only be accessed from a Columbia (or other academic) ip address. If you are at home, you may need to connect to your VPN.

Susanto Basu, 1998. Technology and Business Cycles: How Well do Standard Models Explain the Facts? Conference Series, Federal Reserve Bank of Boston, issue Jun, pages 207-269.

Beaudry, Paul, and Frank Portier. An exploration into Pigou's theory of cycles, Journal of Monetary Economics, volume 51, Issue 6 pp. 1183-1216, September 2004.

Boldrin, Michele, Larry Christiano, Jonas Fisher. Habit Persistence, Asset Returns and Business Cycles. AER 2001.

Burnside, Craig, Martin Eichenbaum, Sergio Rebelo, 1993, ‘Labor Hoarding and the Business Cycle’, The Journal of Political Economy, 101 (2).

V. V. Chari, Lawrence J. Christiano and Patrick J. Kehoe, "Optimality of the Friedman rule in economies with distorting taxes," Journal of Monetary Economics, Volume 37, Issues 2-3, April 1996, Pages 203-223

Christiano, Lawrence J., and Martin Eichenbaum. Current Real-Business Cycle Theories and Aggregate Labor-Market Fluctuations. American Economic Review, Vol. 82, No. 3, 1992.

Christiano, Lawrence J. and Martin Eichenbaum, "Liquidity Effects and the Monetary Transmission Mechanism" (in Recent Developments in Macroeconomics), The American Economic Review, Vol. 82, No. 2, Papers and Proceedings of the Hundred and Fourth Annual Meeting of the American Economic Association. (May, 1992), pp. 346-353.

Lawrence J. Christiano, Martin Eichenbaum, and Charles Evans. Sticky Price Models or Limited Participation Models: A Comparison. EER 1997.

Christiano, Lawrence J., Martin Eichenbaum, Charles Evans. 2005. Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy. Journal of Political Economy 113: 1-45

Christiano, Lawrence J., and Jonas Fisher, 1995. Tobin’s Q and Asset Returns: Implications for Business Cycle Analysis. NBER WP 5292.

Larry Christiano and Terry Fitzgerald. The Business Cycle: It’s Still a Puzzle.

Christiano, Lawrence J., Sharon G. Harrison, Chaos, Sunspots, Automatic Stabilizers, Journal of Monetary Economics 44 (1999) 3-31

Cooley, Thomas F., and Edward C. Prescott, 1995, "Economic Growth and Business Cycles", in Cooley and Prescott eds., Frontiers of Business Cycle Research, Princeton University Press.

Jonas Fisher, 1999. The New View of Growth and Business Cycles

Fisher, Jonas. 2006. The Dynamic Effects of Neutral and Investment-Specific Technology Shocks. Journal of Political Economy.

Greenwood, Jeremy, Zvi Hercowitz, and Per Krusell, 1997, "Long-Run Implications of Investment Specific Technological Change", AER, Vol. 87, Issue 3, 342-362.

Hansen, Gary D. Indivisible Labor and the Business Cycle. Journal of Monetary Economics 16, pp. 309-337, November 1985.

Hansen, Gary D., and Randy Wright, 1992, "The Labor Market in Business Cycle Theory", Quarterly Review, Vol. 16, No. 2, Federal Reserve Bank of Minneapolis.

Nir Jaimovich and Sergio Rebelo. 2006. Can News About the Future Drive Business Cycles? Manuscript.

Robert E. Lucas and Nancy Stokey, "Optimal Fiscal and Monetary Policy in Economies without Capital," Journal of Monetary Economics, 1983.

Prescott and Summers on 'Real Business Cycles

Related Links

Modelling Adjustment Costs

 

 

Updated: 1/20/2008