Advanced Topics in Macroeconomics: Quantitative Macroeconomics
(Johns Hopkins University, AS.180.606)

Course Information
Course Materials
Problem Sets
Useful Articles
Running Course Agenda
  • (1/30/18) We started the course with introductions and a brief overview of what we'll study.  We then reviewed micro-data on wealth and labor earnings to motivate the course's focus on individual-level heterogeneity.  We spent the rest of our class time on a brisk review of complete market economies and aggregation.  (Lecture Notes)
  • (2/06/18) We discussed the difference between complete market economics and autarky, and how empirical work supports an amount of risk sharing intermediate to the two.  We discussed market incompleteness and reviewed a version of the Permanent Income Hypothesis (review from Chris' first year course).  We discussed the empirical evaluation of the PIH.  (Lecture Notes)
  • (2/13/18) Moving past the strict version of the PIH, we studied different model ingredients that lead to a precautionary savings motive.  We considered the presence of borrowing constraints, prudence in utility and the role of discount factors.  (Lecture Notes)
  • (2/20/18) We powered through some technical difficulties and reviewed the role of borrowing constraints and prudence in generating precautionary savings.  We finished talking about the role of discount factors as well.  We then considered a version of the consumption-savings problem with permanent and transitory income shocks, and derived results about the marginal propensity to consume. (Lecture Notes)
  • (2/27/18) We embedded the Buffer Stock Savings model into a growth model.  We proved the existence of a General Equilibrium interest rate and discussed the nuances of computation.  We finished the lecture with a discussion of how precautionary savings motives might interact with fiscal policy in equilibrium. (Lecture Notes)
  • (3/06/18 - 4/10/18) Joseph Briggs takes over for the second part of the course.
Inequality Presentations Begin (both instructors present) Original Research Presentations
  • Students will present for 30 minutes and get some feedback on their research ideas