Oksana M Leukhina
Introduces the modern tools of macroeconomic analysis, in the context of several research topics in the areas of growth and inequality. Helps prepare students to undertake research of their own.
This course covers some of the frontier research in the area of growth and inequality, with a focus on theory as well as modern tools of quantitative analysis. My goal is to equip you with some of the modern tools of macroeconomic analysis. Specifically, you will learn how to solve dynamic optimization models in Matlab, you will become familiar with the U.S. Census dataset, and you will learn how to ask and answer economic questions. This should prepare you to undertake research on your own.
We will study several extensions of neoclassical growth theory (e.g. extensions emphasizing human capital accumulation, several sectors of production, financial frictions, occupational choice, establishment heterogeneity, etc), we will learn first-hand how to solve for the equilibrium paths numerically, how to calibrate models and use them to answer economic questions. In the first part of the course, we will focus on growth over the long run within countries. Second, we will explore sources of income inequality across countries, with a focus on the contribution of financial frictions and human capital. Finally, we will study determinants of income inequality within the U.S. The approach we take will favor depth rather than breadth, i.e. we will study just a few models and related papers, but will get to the bottom of the research question, approach, and identification.
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