Economics 7344

Professor Bent Sorensen

Macro II

Spring 2019

TA: Jose Mota

NOTE: No Macro II class on April 29th, replaced by class on April 30th in the 10-11.30 slot

NOTE: On Friday April 26th, you will have the micro exam first and then the econometrics sesssion.

TA Sessions continue as for Professor Cuba's half.

NOTE: The outline and syllabus is tentative. I may leave out or change material depending on time

I plan to have no midterm.

FINAL (for the second part): Thursday May 2 in class.

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

2016 second midterm exam

2018 Macro IIb 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 (updated April 2019)
The Impact of Interest Rates on Consumption
The CAPM Model
Efficient Markets
The Consumption CAPM
The Term Structure of Interest Rates
Notes on Obstfeld-Rogoff Chapter 5
Ostergaard, Sorensen, and Yosha, JPE 2002
Astrubali, Sorensen, and Yosha, QJE 1996
Note on Market Spanning


Assignment           Due

Homework 1          Wed 3/25

Homework 2          Wed 4/3

Homework 3          Wed 4/10

Homework 4          Wed 4/17

Homework 5          Wed 4/24