Economics 7344 
Macroeconomic Theory IIb
Spring 2018




TA is Hamza Zahid.


TA Sessions continue as for Professor Cubas half.  


NOTE: The outline and syllabus is tentative because the set-up is new. I may leave out material, if time is too tight.

Midterm: Based on student feedback, we will have no midterm.

FINAL (for the second part): Monday April 30 in class.

The material in my 2016 midterm 2 and final will be covered.

2016 second midterm exam

2016 final

Notes (I may not get to all of them):

  Short Introduction to Time Series
Permanent Income and Measurement Error in Consumption Functions

The general Euler Equation and Hall's version of the PIH

Excess Sensitivity, Rule-of-Thumb Consumers and IV estimation

  The Impact of Income "Shocks" on Consumption and ``Excess Smoothness' of Consumption"

The Impact of Interest Rates on Consumption

The CAPM Model

Efficient Markets

The Consumption CAPM

The Term Structure of Interest Rates (updated)

Notes on Obstfeld-Rogoff Chapter 5 (last version: April 28, 2011)

Ostergaard, Sorensen, Yosha, JPE 2002

Astrubali, Sorensen, Yosha, QJE 1996

Note on Market Spanning




Assignment  Due 

HW #1 

Homework 1 Wed 3/21

HW #2

Homework 2 Wed 3/28

HW #3

Homework 3 Wed 4/4



HW #4

Homework 4 Wed 4/11

HW #5

Homework 5 Wed 4/18

HW #6

Homework 6 Wed 4/25