Syllabus for Econ 8200, Spring-1 2023
Topics in Quantitative Macroeconomics
Jose Víctor Ríos Rull pshields.png

Course Description

Grading Rules and Registration

Course Plan

Possible papers to present are

  • Shocks, Frictions, and Inequality in US Business Cycles (Bayer, Born, Luetticke, Jan 2023)
  • Job stability, earnings dynamics, and life-cycle savings (Kuhn and Plog 2020)
  • Sources of Lifetime Inequality (Huggett, Ventura and Yaron 2011),
  • Dynamics of Deterrence (Guler and Michaud 2020) Extended Appendix
  • Household Self-Insurance and the Value of Disability Insurance in the United States (Kellog 2021)
  • Lise and Postel-Vinay 2017
  • Eeckhout Sepahsalari 2018
  • Chaumont and Shi 2018
  • Leon-Ledesma and Satchi 2017
  • Lise Restud
  • Consumption Heterogeneity: Micro Drivers and Macro Implications (Edmund Crawley and Kuchler)

    document heterogeneity in the marginal propensity to consume (MPC) across household characteristics relevant to understanding heterogeneous agent models and monetary policy transmission. We find a strong negative relationship between household liquid wealth and MPC. We show that household liquid wealth predicts MPC closely for every other household characteristic we look at. We use a new empirical method that overcomes sources of bias found in the existing literature, along with administrative data from Denmark that allow us to identify heterogeneous behavior. We use our results to analyze monetary policy transmission mechanisms in both Denmark and the United States.

  • A Risky Venture: Income Dynamics among Pass-Through Business Owners (DeBacker, Panousi and Ramnath)

    employ a large panel of US income tax returns for the period 1987–2018 to extensively characterize and quantify business income risk. Our findings show business income to be much riskier than labor income. Business income is less persistent and is characterized by higher tail risk. Furthermore, when compared to labor income, heterogeneity across households is less important in explaining the cross-sectional variation in business income, and within-household income variation is more important. Our results underscore the income risks business owners face and provide stylized facts and parameter estimates useful for quantitative macroeconomic models and policy analysis.

  • Childcare Subsidies and Child Skill Accumulation in One- and Two-Parent Families (Moschini)

    examine the role of family structure and childcare subsidies in child skill accumulation. I establish empirically that skill accumulation is more responsive to childcare price for one-parent families than for two-parent families. I analyze the effects of childcare subsidies in a model featuring endogenous family formation, parental altruism, and a baseline subsidy resembling that of the United States. I find that eliminating this subsidy generates welfare losses of 1.63 percent of lifetime consumption, that equilibrium adjustments act to mitigate these losses, and that increasing uptake among one-parent families yields the highest welfare gains per additional recipient.

  • Firm Wages in a Frictional Labor Market (Rudanko)

    studies wage setting in a directed search model of multiworker firms facing within-firm equity constraints on wages. The constraints reduce wages, as firms exploit their monopsony power over their existing workers, rendering wages less responsive to productivity in doing so. They also give rise to a time inconsistency in the dynamic firm problem, as firms face a less elastic labor supply in the short run than in the long run, making commitment to future wages valuable. Constrained firms find it profitable to fix wages, and doing so is good for worker welfare and resource allocation in equilibrium. Full-Text Access | Supplementary Materials

But you are free to present whatever you want.

Possible Topics that are related to my work and we can talk about are

Other Topics to discuss (not necessarily related to my work)

  • Human Capital Investment models. This topic will involve a problem with two dimensional endogenous assets and investment. All should do (or be able to do) this. This problem should be posed recursively. I also ask for some people to look at how to solve the problem with two dimensions, assets and a continuous shock, and to propose innovative ways of solving it. A possible place to start is here.
  • I can talk about how to extract information from life insurance data. We started discussing endogenous family formation.
  • We can talk of new models of migration.
  • The Fall of Labor Share

Date: 2022-12-30 Fri 00:00

Author: José Víctor Ríos Rull

Created: 2023-01-22 Sun 23:01