Macroeconomics II - Asset and Labor Markets

in
Monique Ebell
Term: 
summer 2010
Time: 
Wednesday 8-12
June/July
Venue: 
Spandauer 21A

This course focuses on the real side of the economy, in particular on the dynamics of asset and labor markets. We will begin by studying the workhorse model of modern macrofinance, the consumption-based asset pricing model, and also look a variety of extensions which have proven fruitful in matching stylized facts on financial markets. In the second half of the course, we will study Mortensen-Pissarides' canonical model of labor search, and again look at extensions which improve its fit to the stylized facts on cyclical variation in labor market variables. Finally, time permitting, we will examine linkages between labor markets and asset prices, in particular the impact of wage bargaining on firm values.

Literature: Cochrane, J., Asset Pricing, Princeton University Press 2005.
Pissarides, C., Equilibrium Unemployment Theory, MIT Press 2000.

Credits: 
4.5
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