Graduate Macro

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1. Introduction to Macro Data

• Stock, J. H. and Watson, M. W. (1999), “Business Cycle Fluctuations in US Macroeconomic Time Series”, Handbook of Macroeconomics
• Toolbox:
  • Matlab files: extractcycle.m,  hpfilter.m, bpass.m
  • US Postwar Business Cycle Data: data file (xls)
  • John Frain, 2014,”Introduction to Matlab”
  • Matlab cheat sheet

2. Real Business Cycle Theory

2.1 Properties and Solution of the Basic RBC Model

• Dynamic Optimization: lecture notes by Wouter Denhaan
• King R., Plosser C. and Rebelo S., 1988, ”Production, Growth and Business Cycles: I. The Basic Neoclassical Model”, Journal of Monetary Economics 21 (2-3)
• Rebelo S., 2005, ”Real Business Cycle Models: Past, Present, and Future”, Scandinavion Journal of Economics 107(2)
• Toolbox:
  • Matlab files: growthmodel.m, rbcmodel.m
  • Additional Methods for Solving Linear Models
    • Method of Undetermined Coefficients: Harald Uhlig’s toolkit
    • QZ-decomposition: rbcmodel2.m+additional matlab files
    • Optimal Linear Regulator: rbcmodel3.m

2.2 Performance and Some Extensions of the RBC Model

• Indivisible Labor: Hansen, Gary, 1985, “Indivisible Labor and the Business
  Cycle”, Journal of Monetary Economics, 16, 309-27
• 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.
• Two Country Model: Backus, D., Kehoe, P. and Kydland, F., 1992 “International Real Business Cycles”, Journal of Political Economy, 100 (4)
• News Shocks: Jaimovich, N. and Rebelo, S., 2007 “Can News About the Future Drive the Business Cycle”, American Economic Review, 99(4)
• 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
• Adjustment Costs: Cogley T. and Nason J., 1995, “Output Dynamics in Real-Business-Cycle Models”, The American Economic Review 85 (3)
• 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)

3. Labor Markets

• Toolbox:
  • Matlab files: search.m, search_SSsolve.m, search_rigidwages.m, search_hm.m, 
    additional matlab files

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
• Toolbox:
  • Matlab files: MIUmodel.m, MIUmodel2.m, CIAmodel.m, STmodel.m

5. Measurement Without Much Theory

5.1 Evidence on Technology Shocks

• Gali, J., 1999, “Technology, Employment, and the Business
  cycle: Do technology shocks explain aggregate fluctuations?”,
  American Economic Review, 89(1), 249-71.
• Toolbox:
  • Matlab files: SVARtechnology.m

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.

5.3 Evidence on Fiscal Policy Shocks

• Blanchard, O. and Perotti R.,2002, “An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output”, Quarterly Journal of Economics 117 (4)

6. Models of Nominal Rigidities

• Toolbox:
  • Matlab files: stickyprice1.m, stickyprice2.m, stickyprice3.m, stickyprice4.m

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