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Advanced Macroeconomics

This course builds on the methods and concepts introduced in Macroeconomics I and II. The aim of this course is to learn: 1) recursive competitive equilibrium models that feature individual and firm heterogeneity ; and 2) how to solve numerically for the equilibrium of these economies. These models are helpful to analyze a wide range of questions pertaining to business cycles, income distribution, asset pricing etc. The course will start with a discussion of aggregation with heterogeneous agents. It will then move towards economies with incomplete markets, where agents can only borrow and save through a risk-free bond. The last set of lectures introduce economies with heterogeneous firms, equilibrium

default in incomplete markets models through the particular example of sovereign default, and conclude with a brief introduction to heterogeneous agent New Keynesian models.

Prerequisite: ECO 5202 (Macroeconomics II)

Study at Ashoka

Study at Ashoka