Quantitative Macroeconomics [F2017]

"The era of closed-form solutions for their own sake should be over. Newer generations get similar intuitions from computer-generated examples than from functional expressions", Jose-Victor Rios-Rull, JME (2008).

Course Description:

Quantitative Macroeconomics (Unit I) follows the first year PhD macro sequence. The goal of this course is to equip you with a wide set of tools to (i) solve macroeconomic models with heterogenous agents aka Aiyagari-Bewley-Hugget-Imrohoroglu (ABHI) economies and (ii) relate these models to data to answer quantitative questions. You will learn to do so by doing. That is, this course will require intensive computational work by students.

The ABHI economies are the industry standard in macro. These economies can take the form of infinite horizon, lifecycle environments, and overlapping generations. Importantly, the presence of heterogeneity requires taking good care of distributions and aggregate consistency. We will discuss carefully how to do this in both stationary and nonstationary environments.

This course is demanding and I expect you to be engaged continuously from day one. The grade will be some weighted average of regular homeworks.

We meet Tuesdays and Thursday 16:45-18:15 in the LRC room.

Class Diary:


Students should expect one homework per foreseeable day of class: