Macroeconomics I

Time I: 
Wednesday, 08:30am to 12:00pm
Venue I: 
DIW (Schumpeter Hall/Dulles Room), Mohrenstraße 58, 10117 Berlin

Contents Prof. Burda: Methods of modern macroeconomics for researchers in the field. Stationary Markov environments, state-space methods, stochastic difference equations. Dynamic programming and Lagrangian methods, Complete markets, Dynamic stochastic general equilibrium models, Solution techniques. Empirical consequences of macroeconomic shocks; structural estimation, the Ramsey problem.

Contents Prof. Weinke: This course develops dynamic stochastic general equilibrium (DSGE) models and uses them for positive and normative macroeconomic analysis. To this end a number of theoretical and empirical concepts are presented. Examples include the computation of impulse response functions, structural vector autoregressions, as well as an introduction to structural estimation. On the normative side the concept of Ramsey optimal policy is presented.

Literature for Prof. Burda's part:

Ljungqvist and Sargent, Recursive Macroeconomics, 2nd edition (Cambridge, USA: 2004) Chapters 2-4
selected journal articles

Literature for Prof. Weinke's part:

chapters 8 and 15 of Ljungqvist and Sargent, Recursive Macroeconomics, 2nd edition (Cambridge, USA: 2004)
selected articles, e.g., Galí, Jordi and Pau Rabanal (2004), Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S. Data?, in: NBER Macroeconomics Annual.

Written (90 minutes)

Fall 2013
End date of the whole course: 
Saturday, February 15, 2014 - 12:00pm