advanced macroeconomic analysis
second-year ph.d. course
Second-Year Ph.D. Advanced Macro Topics course on Macroeconomic Theory, designed for PhD candidates who plan to conduct research in Macro (or Finance)
Taught in Spring 2014, Spring 2015, Fall 2015, and Fall 2017
This course covers a variety of topics in macroeconomic theory. In particular, the class will focus on informational frictions and networks in macroeconomics and finance, and with tools borrowed heavily from game theory. The first part of the class will focus on the economic implications of informational frictions. Here we will study some of the tools that are used in this literature, while also surveying the economic questions to which these tools are often applied. Topics include global games, expectations-driven business cycles, beauty contests, monetary non-neutrality, asset pricing, information aggregation, the Kalman filter, dynamic linear models with endogenous information, the forecasting the forecasts of others problem, imperfectly competitive financial markets, and the like. The second part of the class will focus on networks. Networks have recently become an interesting new area in both macroeconomics and finance. Network models have been applied to input-output models of firm production in macro, as well as to interbank lending markets and derivatives markets in finance. Recent theoretical work has stressed that the network structures of these markets matter for fluctuations and aggregate sensitivity to idiosyncratic shocks. We will study some of these models to gain insight into this recent literature.
to be added