Course: Advanced Macroeconomics II – Part B

Professor: Christos Koulovatianos

ECTS: 2

Aims:

This course connects students to the research frontier of modern Macroeconomics. It builds on and complements the PhD training in Macroeconomics that begins with the course Advanced Macroeconomics I of the Master in Quantitative Economics and Finance (past Research Track). The course content includes most recent advances business cycle theory, heterogeneous-agent models, financial stability and asset pricing. An introduction to dynamic fiscal policy will introduce students to normative and predictive issues. The course emphasizes theoretical foundations, empirical applications, policy analysis, and computational methods. Emphasis is given to continuous-time stochastic numerical dynamic programming and viscosity solutions and to state-of-the art financial-stability models with endogenous crises.

Objectives:

Upon successful completion of this course students will be able to:

• understand and contribute to the theory and policy of business cycles, heterogeneous-agent models and asset pricing

• understand and apply numerical techniques of dynamic optimization (Matlab)

• understand and apply calibration techniques

• understand the new economics of endogenous crises