14.462 | Spring 2007 | Graduate

Advanced Macroeconomics II

Lecture Notes

Part 1 - Professor Blanchard

I. Shocks

Vector Autoregression Models (VARs). Wold Representations and Their Limits (PDF)

Structural VARs (PDF)

A Few Major Shocks or Many? Factor Models (PDF)

Technology versus Demand Shocks (PDF)

The Great Moderation (PDF)

II. Unemployment, Institutions, and Shocks

Basic (non-cyclical) Facts about Unemployment Flows (PDF)

Flows, Bargaining, and Unemployment (PDF)

Role of Institutions I: Employment Protection and the Labor Market (PDF)

Role of Institutions II: Trust, Hold-ups, and Bargaining (PDF)

“Culture” and Labor Market Outcomes (PDF)

Cyclical Movements in Unemployment (PDF - 1.3 MB)

Productivity Growth versus Unemployment. Trying to put Things Together (PDF)

III. Dynamic Stochastic General Equilibrium Models (DSGE Models)

Dynamic Stochastic General Equilibrium Models

Part 2 - Professor Lorenzoni

I. Imperfect Information and Demand Shocks

Imperfect Information and Demand Shocks
Day 1 (PDF 1)
Day 2 (PDF 2)
Day 3 (PDF 3 - 1.3 MB)

II. Financial Frictions and Investment

Financial Frictions: Limited Pledgeability and Richer Models (PDF)

Q Theory (PDF)

Bubbly Asset Prices and Investment (PDF)

III. Liquidity and Aggregate Activity

Limited Supply of Liquidity

Search Models

Countercyclical Liquidity Premia (PDF)

Liquidation and Asset Prices (PDF)

Course Info

As Taught In
Spring 2007
Learning Resource Types
Problem Sets
Lecture Notes