Quantitative Macroeconomics [SP2016]

"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 follows the first year PhD macro sequence: Econ 501 and 502. The goal of this course is to equip you with a wide set of tools to (i) solve macroeconomic models with heterogenous agents 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.

First, we will discuss numerical methods to solve for the equilibrium allocations of representative agent models. Second, we will study how to solve heterogeneous agents economies in infinite horizon, lifecycle environments, and with overlapping generations. In macroeconomic models, 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 such as business cycles or development processes of structural transformation.

This course is demanding and I expect you to be engaged continuously. The grade will be some weighted average of regular homeworks, and an original research project to be presented in class.

We meet Tuesdays 17:30-20:30 in Seigle Hall 348.

Class Diary:


Students should expect one homework per foreseeable Tuesday: