Economics
8344 - Macroeconomic Theory III |
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MIDTERM DATE: March 6th.
FINAL: Referee report
on a paper. To be graded.)
No class: April 15
Presentations: (Please send me your papers, so I can post them here)
April 1 --- Wen: Bruno-Shin slides
April
3 – Volodomyr: INTERNATIONAL
CAPITAL FLOWS AND HOUSE PRICES slides
April 8 ---
April 10 --- Jake: Nikolsko-Rzhevskyy-Papell-Prodan
April 17 --- Edson: Carroll-Weil
April 22 --- Lan House Prices and Risk Sharing
April 24 – Mike Jack and Suri
April 29 – Blake Martin and Ventura
Reading List (Out of date)
We start with my work producing stylized facts about (lack of) international financial integration.
1) ``International Risk Sharing and European Monetary Unification.'' (JIE 1998) Measures international risk sharing and find channels.
2) ``Economic Integration, Industrial Specialization, and the Asymmetry of Macroeconomic Fluctuations.'' (JIE 2001) Welfare gains from risk sharing.
3) ``Home Bias and International Risk Sharing: Twin Puzzles Separated at Birth.'' (JIMF 2007) Measures Home Bias and correlates it with risk sharing
For Monday 2/4 read BackusSmith JIE1993 (Or read Obstfeld and Rogoff’s section in Chapter 5 with non-durable goods).
Morgan, Rime, Strahan (QJE 2004) on volatility effects of banking integration (I expect you to be able to replicate the demand-supply figures)
Demyanyk, Ostergaard, Sorensen (JF 2007) risk sharing and banking integration (I won’t ask questions in this, but it complements MRS nicely)
Ekinci, Kalemli-Ozcan, Sorensen (NBER International Seminar on Macroeconomics 2007. MIT Press 2008). This paper is about capital flows and trust (trust variables are well motivated instruments for financial integration and arguably exogenous)
(Look at EKS for Monday 2/18. Look back here, I may add stuff).
Consumption papers:
Carroll 2001, Buffer Stock Model (for Feb 25)
Luengo-Prado and Sorensen Restat 2008
Productivity paper: Quantifying Productivity Gains from Foreign Investment
(slides for presentation)
Volatility paper: Kalemli-OzcanSorensenVolosovych
Zipf’s law, Gabaix QJE 99 and Granularity Gabaix ECA ‘11
A list of further works (by me) on risk sharing filling in blanks and updating, I plan to briefly give the punch lines :
Further work of mine on RS (with ultra-short summary) Many of these papers use the same framework and I can quickly tell you about the empirical findings.
Tentative Requirements (20 percent each):
Homework |
Assignment |
Due |
HW #1 |
Mon Feb 4 |
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HW #2 |
Mon Feb 11 |
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HW #3 |
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HW #4 |
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HW #5 |
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HW #6 |
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