Economics
8346
Dynamic
Macroeconomics
II
Spring 2014
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Syllabus
(updated 1/28/14, it is still tentative, we probably won’t get to all the
topics)
Extra class Monday February 10. Mike presents a paper.
Monday February 17, Carolina
presents a paper
Wednesday February 19, Pavlo and Sophia present a
paper or two
(with focus on the first one)
NOTE: Extra class Monday February 24. Edson presents a paper
Wednesday February 26, Celine presents a paper
Monday March 3, Taylor presents a paper or two (with focus on the first one)
Wednesday March 5, Subash presents a paper
Monday March 17, Bocong presents a paper
No classes on March 31st and April 2nd.
The course will cover various topics, mainly on the intersection of economics
and finance.
How to write: Cochrane’s
writing tips
Readings:
Overview of
Great Recession drivers: Brunnermeier, Markus,
2009. Deciphering the
2007/8 Liquidity and Credit Crunch. Journal of Economic Perspectives 23,
Firm Leverage:
Rajan, R., Zingales, L., 1995. What Do We Know About Capital Structure?
Some Evidence From International Data. Journal
of Finance 50, 1421--1460.
Lemmon, M.L., Roberts, M.R., Zender, J.F., 2008.
Back to the Beginning: Persistence and the
Cross-Section of Corporate Capital Structure. Journal of Finance 63, 1575--1608.
Adrian, T., Shin H., 2010. Liquidity and Leverage. Journal of Financial Intermediation 19,
418--437.
Adrian, T., Shin H., 2009. Money, Liquidity and Monetary Policy.
American Economic Review (papers and
proceedings), 99. (This is the paper I referred to in class.)
Kalemli-Ozcan, Sebnem, Bent E. Sorensen, and Sevcan
Yesiltas. Leverage Across Firms, Banks, and Countries. Journal
of International Economics 88, 2012, 284--298.
The impact of
credit shocks on firms:
Gertler, M. and S. Gilchrist, 1994, Monetary
Policy, Business Cycles, and the Behavior of Small Manufacturing Firms, Quarterly Journal of Economics, 109, 309--340.
Peek, J. and E. S. Rosengren,
2000, Collateral
Damage: Effects of the Japanese Bank
Crisis on Real Activity in the United States, American
Economic Review, 90, 30--45.
Iyer,
R., S. Lopes, J-L Peydro, and Antoinette Schoar, 2014, Interbank
Liquidity Crunch and the Firm Credit Crunch: Evidence From the 2007-2009 Crisis, Review of Financial Studies, 27
(1): 347-372.
Amiti, Mary
and David E. Weinstein, 2011,
``Exports
and Financial Shocks," Quarterly
Journal of Economics, Oxford University Press, vol. 126(4), pages
1841-1877.
Ostergaard, Charlotte, Amir Sasson,
and Bent E. Sorensen ``Cash flow sensitivities and bank-finance shocks in nonlisted firms'' (Draft.)
Consumption
in the Great Recession:
De Nardi, Mariacristina, Eric French, and David Benson, 2012. "Consumption and the Great Recession,"
{\it Economic Perspectives}, Federal Reserve Bank of Chicago, q1, pages 1-16. (Also NBER Working
Paper 17688.)
Petev, Ivaylo, Luigi Pistaferri, and Itay Saporta Eksten
(2013). ``Consumption and the Great
Recession: an analysis of trends, perceptions, and distributional effects.'' Stanford
University Working Paper.
Alan, Sule, Thomas
Crossley, and Hamish-Low, (2012). Saving on a Rainy Day, Borrowing for a Rainy Day. University
of Cambridge, Working
Paper.
Richard
Blundel, Richard, Hamish Low, and Ian Preston,
(2013). ``Decomposing
changes in income risk using consumption data," Quantitative Economics, Econometric Society, vol. 4(1), pages 1-37,
03.
Mian, Atif and Amir Sufi (2009):
``Consequences of the
Mortgage Credit Expansion: Evidence from the US Mortgage Default Crisis’’
QJE2009
Mian, Atif and Amir Sufi, (2011).``House Prices,
Home Equity-Based Borrowing, and the US
Household Leverage Crisis," American
Economic Review, vol. 101(5), pages 2132-56, August.
Saiz: Housing Supply Elasticities
Landier, et al: House Price
Correlations
Mian, Atif, Kamalesh
Rao, and Amir
Sufi, (2013). ``Household Balance
Sheets, Consumption, and the Economic
Slump'' Chicago Booth Working Paper (forthcoming QJE).
Michelozzi, Lorenzo ``Household Expenditures in the Great Recession,''
Job Market Paper, Northwestern
Misallocation
of capital:
Restuccia, D. and Rogerson, R. (2008) Policy Distortions and Aggregate
Productivity with Heterogeneous Plants, Review
of Economic Dynamics 11, 707-720.
Hsieh, C. and Klenow, P.
(2009) Misallocation and Manufacturing TFP
in China and India, Quarterly Journal
of Economics 124, 1403-1448.
Kalemli-Ozcan, Sebnem and Bent E. Sorensen: Misallocation,
Property Rights, and Access to Finance: Evidence from Within and Across Africa
(Forthcoming, NBER Volume)
The Role of
Intermediary Goods/Production Chains:
Charles Jones: ``Intermediary
Goods and Weak Links in the Theory of Development” AEJ: Macro 2011, 1-28
Bigio and La’O: ``Financial
Frictions in Production Networks.’’ Working Paper.
Kim, Se-Jik, Hyun Song Shin, Sebnem Kalemli-Ozcan,
Bent E. Sorensen, and Sevcan Yesiltas: “Financial Shocks in Production
Chains” draft (2014)