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RES 2009 syllabus

Econ 808 - Fall 2009 | ES0-002 Dumps and test Braindumps

Econ 446 - Spring 2002 Syllabus

-  course Description and description

problem units and assessments

difficulty Set 1  (due October 7)difficulty Set 2  (due October 21)difficulty Set 3  (due November 18)issue Set four  (due November 27)difficulty Set 5  (due at closing examination)Midterm (Fall 2003)Midterm (Fall 2005) Midterm (Fall 2006)Midterm solutions (Fall 2009)remaining  (Fall 2003)remaining  (Fall 2005)remaining  (Fall 2006)


1.)  The application bigshow.m takes AR and MA coefficients as enter, and then plots a simulated time path, an impluse      response function, and the spectral density.  It calls the classes ss.m, tf.m, impulse.m, dimpulse.m, shownew.m andfreq.m

2.)  The application ex2.m solves the primary job search mannequin in question #6 in issue set 1. It calls the program valit.m.       (These courses have been written by way of Pierre Olivier-Weill, a Stanford graduate scholar at the time, now an UCLA professor)

three.)  The file epdata.m includes Mehra and Prescott's (1985, JME) information.  The software hanjagbnd.m uses this       information to compute and plot Hansen-Jagannathan bounds.  These are used to answer query 5 in issue set 3.       observe, hanjanbnd.m calls the software PTIME.M to do some statistics manipulations, so you should down load this too.


Methodological  considerations

This paper explains why macroeconomists worry so a whole lot about "microfoundations" (i.e., why it's so crucial to clarify macroeconomic aggregatesin terms of the underlying preferences and applied sciences of particular person brokers).

Lucas (1976),  "Econometric coverage evaluation: A Critique", Carnegie-Rochester conference sequence on Public policy

The subsequent paper discusses the tension between wonderful and normative procedures to macroeconomics. It elements to a potential logical inconsistency in the Lucas Critique.It features out that the Lucas Critique can be unimportant from a in basic terms high quality point of view wherein govt coverage is made endogenous.

Sargent (1984),  "Autoregressions, Expectations, and suggestions",  American financial overview

The subsequent paper is Prescott's Nobel Lecture.  It studies the dramatic adjustments that have taken location during the previous few a long time in both the questions macroeconomists ask, and the way theygo about answering them.

Prescott (2006),  "The Transformation of Macroeconomic policy and analysis",  Journal of Political economic system

This subsequent paper is Sargent's AEA presidential tackle. It experiences fresh efforts to chill out the Rational Expectations speculation the usage of  fashions of discovering and adaptive behavior.  Saargent notesthat adaptive getting to know fashions customarily produce Self-Confirming Equilibria, as opposed to Rational Expectations Equilibria.  the key change is that Self-Confirming Equilibriaonly require beliefs to be relevant (on ordinary) alongside the equilibrium route.  Beliefs about activities that aren't followed alongside the equilibrium direction are allowed to be misspecified.Sargent (2008),  "Evolution and clever Design",  American economic evaluate

eventually, here two regular press articles present contrasting assessments of  what the fresh monetary crisis ability for macroeconomics.  Krugman argues that it exposes thefallacies of current macroeconomic methodology,  and requires a return to Keynesian economics.  Lucas argues that this variety of prognosis is inaccurate, and the proposed remedy is even worse.For my funds, Kocherlakota's short piece offers essentially the most accurate evaluation of the state of macroeconomics.  He elements out that macroeconomists have definitely been spending lots oftime attempting to include frictions and market imperfections into their models.  alas, this fresh work has been fairly technical, and has no longer filtered down to the textbooks yet.

Lucas (2009),  "In defense of the Dismal Science",  The EconomistKrugman (2009),  "How Did Economists Get It So incorrect?",  manhattan times MagazineKocherlakota (2009),  "Some concepts on the State of Macro",  unpublished mimeo.Dynamic Optimization and Numerical strategies

Stokey's paper offers a relatively intuitive exposition of continual-time dynamic optimization.  The paper by way of Alvarex andStokey gives some existence and strong point results for a category of unbounded return services, of the form often encountered in economics.

Stokey (2003),  "Introduction to top-rated handle",  Unpublished notesAlvarez & Stokey  (1998),  "Dynamic Programming with Homogeneous features",  Journal of economic concept

Uhlig's paper indicates the way to linearize nonlinear Euler equations, and applies a method of undetermined coefficients to clear up them.  Sims et al. argue that first-order (ie, linear) approximation methods regularly produce deceptive effects, certainly when computing welfare and asset expenses.The paper by way of Villaverde et al. consists of a detailed evaluation of a couple of option solution options for a standard stochastic increase mannequin.  It concludes that 2nd-orderperturbation methods obviously dominated first-order linear approximations. Projection methods are even stronger, but will also be a good deal extra complicated to implement.

Uhlig (1999),  "A Toolkit for analyzing Nonlinear Dynamic Stochastic fashions with ease", e-book chapterSims et al. (2003),  "Calculating and the usage of second-Order accurate options of Discrete Time Dynamic Equilibrium fashions"Villaverde et. al. (2003),  "comparing solution methods for Dynamic Equilibrium Economies", working paper


Shimer and Werning use a McCall search model to study unemployment assurance guidelines when agents are possibility averse.  They display that once brokers can borrow and lend at a constantriskless activity fee and have CARA preferences, a coverage with steady UI merits funded by means of a constant employment tax is finest.  The same coverage is virtually most appropriate with CRRA preferences.

Shimer & Werning (2008),  "Liquidity and insurance for the Unemployed",  American economic ReviewThe subsequent 2 papers survery the influential Mortensen-Pissarides search model of equilibrium unemployment. Shimer facets to a number of empirical shortcomings of the mannequin, and argues thatthe supply of the problem lies within the Nash Bargaining wage environment assumption.  Hornstein, Krusell and Violante talk about a few contemporary efforts to handle the empirical shortcomings of theMortensen_Pissarides mannequin.  They argue that none of the current efforts are completely ample.

Shimer (2005),  "The Cyclical behavior of Equilibrium Unemployment and Vacancies",  American economic ReviewHornstein, Krusell & Violante (2005),  "Unemployment and emptiness Fluctuations in the Mortensen-Pissarides model",  Richmond Fed economic evaluation

Moen extends the Mortensen-Pissarides mannequin by using introducing aggressive wage surroundings, and argues that the ensuing equilibrium is effective. Rogerson et al. supply an in depth overview of search-theoretic fashions of the labor market, with an emphasis on thought as opposed to empirical work.  Ljungqvist & Sargentreview choice methods to realizing unemployment, and query Prescott's contemporary contention that tax prices clarify changes between North American and European labor deliver.

Moen (1997),  "aggressive Search Equilibrium",  Journal of Political EconomyRogerson, Shimer & Wright (2005),  "Search-Theoretic fashions of the Labor Market",  Journal of financial LiteratureLjungqvist & Sargent (2005), "Jobs and Unemployment in Macroeconomic theory: A Turbulence Laboratory", mimeoLjungqvist & Sargent (2008),  "Two questions about European Unemployment",  Econometrica

boom theory

Lucas offers some viewpoint on the importance of realizing enterprise cycles.  He summarizes a analysis application that he initiated in 1987 which makes an attempt tocalculate the welfare prices of company cycles.  His normal estimate cautioned that business cycles have very small wefare consequences - orders of magnitude smaller than the welfareeffects of increase.  here article argues that this long-established estimate is strong to a number of low-priced changes.

Lucas (2003),  "Macroeconomic Priorities",  American financial review

the primary 2 papers ignited the endogenous boom revolution. Romer's mannequin is in keeping with researching-with the aid of-doing externalities. Lucas' mannequin is in accordance with human capital. The thirdpaper is a nice survey of endogenous increase conception.

Lucas (1988),  "The Mechanics of economic building", Journal of monetary EconomicsRomer (1994),  "The Origins of Endogenous boom",  Journal of financial perspectives

The next paper features out that if the Solow mannequin is true (with identical technologies across countries) there should still be huge incentives for capital to circulation into bad international locations

Lucas (1990),  "Why doesn't Capital stream from prosperous to poor nations?", American economic evaluate

The next two papers argue that it is not possible to explain the cross-sectional distribution of profits levels unless you expect that know-how tiers vary.Parente and Prescott offer political economy-based  models to explain why expertise doesn't diffuse throughout international locations.

Prescott (1998),  "obligatory: A thought of complete aspect productiveness", international financial ReviewParente & Prescott (1999),  "Monopoly Rights: A Barrier to Riches",  American economic evaluation

Asset Pricing

Lucas suggests that with complete markets the intertemporal marginal rate of subsitution in consumption can also be used to fee belongings.  Kocherlakota reviews empirical work alongthese lines.  He argues that asset costs are intricate to explain from this perspective.  Constantinides & Duffie display that incomplete markets with  persistent idiosyncratic labor incomerisk can explain the equity top class puzzle. 

Lucas (1978),  "Asset fees in an change financial system",  EconometricaKocherlakota (1996),  "The equity top class: it's still a Puzzle",  Journal of economic LiteratureConstantinides & Duffie (1996),  "Asset Pricing with Heterogeneous consumers",  Journal of Political EconomyBackus, Routledge and Zin  (2004),  "exotic Preferences for Macroeconomists",  NBER Macroeconomics Annual, 2004Barro (2006),  "infrequent disasters and Asset Markets within the Twentieth Century",  Quarterly Journal of Economics

Dynamic ultimate Taxation

Atkeson et al review Chamley and Judd's effect that the (asymptotic) optimum tax expense on capital revenue is zero.  They argue that this influence is more ordinary than frequently believed.Aiyagari et al.  reconciles Barro's (1979) tax-smoothing mannequin with Lucas and Stokey's (1983) mannequin.  in accordance with permanent-earnings common sense, Barro expected that debt and taxes shouldfollow random walks.  Lucas and Stokey's mannequin predicts that tax costs may still replicate the serial correlation structure of executive charges.  the key change between thesemodels is that Barro assumes only state non-contingent debt, whereas Stokey and Lucas anticipate effortlessly finished markets. by way of ruling out state-contingent debt in Lucas andStokey's model, Aiyagari et al display that Ramsey taxes contain a near unit root, closely reminiscent of the predictions of Barro's model. besides the fact that children, to acquire this influence, exogenousrestrictions on govt asset holdings ought to be imposed.  Kocherlakota experiences most effective taxation with private assistance.  He develops a so-known as "Mirrlees method" to dynamicoptimal taxation, which relaxes the Ramsey taxation literature's (commonly implict) assumption that taxes are linear features of income. He indicates that wealth taxes are zero on standard, butare larger for poorer households.  Poorer households pay higher wealth taxes only for incentive reasons, i.e., to discourage hidden saving.

Atkeson, Chari & Kehoe (1999),  "Taxing Capital revenue: a foul idea",  Minneapolis Fed Quarterly ReviewAiyagari, Marcet, Sargent & Seppala (2002), "greatest Taxation with out State-Contingent Debt", Journal of Polit. EconomyKocherlakota  (2006),  "Advances in Dynamic greatest Taxation",  mimeoGolosov, Tsyvinski, & Werning  (2006),  "New Dynamic Public Finance: A user's e-book",  NBER Macroeconomics Annual, 2006

Lecture Slides

Lecture 1Lecture 2Lecture 3Lecture 4Lecture 5Lecture 6Lecture 7Lecture 8Lecture 9Lecture 10Lecture 11Lecture 12Lecture 13Lecture 14Lecture 15Lecture 16Lecture 17Lecture 18Lecture 19Lecture 20Lecture 21Lecture 22


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