Economics 7344 
Macroeconomic Theory II
Spring 2016




TA is Saumya Rana.Her office hours are Thursday 1pm-2pm.


TA Session will be Friday 9.30 am-11am in Rm 212.


NOTE: Saumya may be arriving a few weeks into the semester.THERE WILL BE A REGULAR CLASS FRIDAY JANUARY 22ND 9.30-11. No session Friday January 29th.

Extra class Monday Feb 15, 3.30-5pm (you will have a class off later, so we have the normal number of hours).


NOTE: We will not have classes on March 28th and March 30th (I will teach econometrics). Saumya will answer questions on previous midterms etc. on Friday April 1. (I previously announced that we will not have class on April 6th but that is no longer true. There WILL be a class on April 6th.


Midterm 1: Monday February 29th in class.

Midterm 2: Monday April 4th in class.

FINAL: Monday May 2nd in class.

Last yearís first midterm exam

Last yearís second midterm exam

Last yearís final


  Short Introduction to Time Series

Note on IS-LM
†† Permanent Income and Measurement Error in Consumption Functions

The general Euler Equation and Hall's version of the PIH

Excess Sensitivity, Rule-of-Thumb Consumers and IV estimation

  The Impact of Income "Shocks" on Consumption and ``Excess Smoothness' of††††† Consumption"

The Impact of Interest Rates on Consumption

The CAPM Model

Efficient Markets

The Consumption CAPM

The Term Structure of Interest Rates (updated)

Notes on Obstfeld-Rogoff Chapter 5(last version: April 28, 2011)

Ostergaard, Sorensen, Yosha, JPE 2002

Astrubali, Sorensen, Yosha, QJE 1996

Note on Market Spanning




Assignment †††††††††††††††††††† Due 

HW #1 

Homework 1†††††††††††††††††† Wed 2/3

HW #2

Homework 2†††††††††††††††††† Wed 2/10

HW #3

Homework 3†††††††††††††††††† Wed 2/17

HW#4†††††††††††††††††††† †††††††††††††††††††††††Homework 4†††††††††††††††††† Wed 2/24



HW #5

Homework 5†††††††††††††††††† Wed 3/9

HW #6

Homework 6††††††††††† †††††††Wed 3/23

HW #7

Homework 7†††††††††††††††††† Wed 3/28

HW #8

Homework 8†††††††††††††††††† Wed 4/13

HW #9

Homework 9†††††††††††† ††††††Wed 4/20

HW #10

Homework 10††††††††††††††††† Wed 4/27