Main themes: This course presents an in depth analysis of the impact of heterogeneity in the macro-economy. The main framework which is utilized is the so called model of heterogeneous agents and wealth accumulation which is basically the workhorse model in modern quantitative macroeconomics. Several applications of the theory will be discussed covering the effects of recent trends in income inequality in the US and in Europe, the life cycle pattern of consumption, the cyclical behavior of aggregate hours and employment, the wealth concentration and the role of public policies such as the tax code and the pension system. In a last part this course will explore the implications of alternative models of heterogeneous agents and in particular models of endogenous incomplete financial markets.
Aims:
The aim of the course is to teach the students to apply the tools of
quantitative macroeconomics with a particular focus on the effects of
heterogeneity. The treatment of the economic problems is rigorous and
the students will be required to master the numerical methods which are
utilized to solve the models presented in class. Beyond the
methodological side, the content of this course is motivated by the
microeconomic data and the course itself discusses several interesting
economic phenomena related to household decisions and their impact on
the macroeconomy.
- Enseignant: Germain Antoine
- Enseignant: Oikonomou Rigas