Economics

VALERIA PATELLA

Mastering state–of–the art modelling approaches and computational techniques
in macroeconomics and finance. The MACROFIN course is intended for master students,
serving as a bridge between intermediate-level macroeconomics and PhD-level
macroeconomics. This course introduces students to the analysis of real business cycle
models in complete and incomplete markets, with heterogeneous agents and financial
frictions. A first part of the course focuses on: building benchmark business cycle models,
deriving competitive vs social planner equilibria, defining models in recursive form (Bellman
equation), solving and simulating them with local and global methods. A second part of the
course advances towards general equilibrium models with incomplete markets,
heterogeneous agents, and financial frictions.

Mastering state–of–the art modelling approaches and research methodology in macroeconomics and finance. MACROFIN is intended for first-year master students, serving as a bridge between intermediate-level macroeconomics and PhD-level macroeconomics.

No prerequisites

The primary objective of the course is to provide methodological tools for advanced research in macroeconomics. A first part of the course introduces students to the rigorous solution methods for business cycle models. A second part of the course advances in the building of stochastic general equilibrium models with incomplete markets, financial frictions, and heterogeneous agents.

Recursive Macroeconomic Theory, MIT Press, by T. Sargent and L. Ljungqvist
Judd, K. L. (1998), Numerical Methods in Economics, MIT Press
Huggett(1993). The risk-free rate in heterogeneous-agent incomplete-insurance economies. Journal of Economic Dynamics and Control, 17, pp.953-969
Krussel and Smith (1998). Income and Wealth Heterogeneity in the Macroeconomy. Journal of Political Economy, Vol. 106, No. 5, pp. 867-896
Kiyotaki and Moore (1997). Credit Cycles. Journal of Political Economy, Vol. 105, No. 2, pp. 211-248
Bernanke and Gertler (1989). Agency Costs, Net Worth, and Business Fluctuations. American Economic Review , Mar., 1989, Vol. 79, No. 1 (Mar., 1989), pp. 14- 31
Lecture slides

Si prevede didattica frontale.

In presence

The course evaluation is based on:
- reading group activities
- written exam

Note that the reading group activities will be valid for the summer exam session only.

A mock exam will be provided during classes