Advanced Macroeconomics

  • Outline

  • Reading list

  • Part 1 - Firm Dynamics: we review empirical evidence on the role of firms in the economy (job reallocation, firm turnover, firm growth, and productivity) and introduce a workhorse model of firm dynamics.

  • Part 2 - Misallocationwe describe the concept of misallocation. We introduce a workhorse model used to quantify the output cost of misallocation and look at methods to estimate distortions in the data.

  • Part 3 - Trade with Heterogeneous firmswe review evidence on firm-level trade and introduce the workhorse model of international trade with heterogeneous firms.

  • Part 4 - FrictionsWe review empirical evidence on labor market frictions, labor market flows (hiring and separation), and wage dispersion. We introduce the standard model of firm dynamics with employment adjustment and extend it to a framework with worker reallocation, unemployment, and wage bargaining