Econometric Methods II (Second Half)

PhD Course, Economics Department, Universitat Pompeu Fabra and Barcelona GSE, 2010

Tuesdays 11am-1pm (20.051) and Thursdays 3pm-5pm (20.053)
Office Hours: Mondays 11am-12.30am, Room 23.408
Midterm: Tuesday June 15, 11am-1pm, Room TBA


Overview

This half of the course aims at equipping students with some of the tools needed to produce applied macro economic research. Most of the material can be found in a combination of Hamilton's textbook and Cochrane's text, but reading articles may also be required.


Syllabus

Homework 1 (due 24.00 Tuesday May 25)
HW1data

Homework 2 (due 24.00 Wednesday June 9)
HW2data

Exercise Questions for midterm

Last year's midterm

Histograms of results

Lecture 1 Introduction
Lecture Notes

Lecture 2 Cointegration
Hamilton Ch 19.1 - 19.2 and Cochrane Ch 11

Lecture 3 Structural VARs: Identification
Hamilton Ch 11.6, Cochrane Ch 7.1, Leeper, Sims and Zha (1996) and Blanchard and Quah (1989)

Lecture 4 Structural VARs: IRFs, Historical decompositions and some critiques
Rudebusch (1998)
Sims(1996!) response to Rudebusch (1998)
Chari, Kehoe and McGrattan (2008) Ellen McGrattan in multimedia format

Lecture 5 Factor models
Stock and Watson (2010) and Bernanke, Boivin and Eliasz (2005)
Slides

Lecture 6 State space models and the Kalman filter
Lecture notes on the Kalman Filter

Lecture 7 Kalman filter applications
Slides

Lecture 8 Numerical maximization of the likelihood function
Hamilton Ch 5
Goffe et al (1994)
Slides and MatLab Code from class

Lecture 9 Introduction to Bayesian estimation of DSGE models
An and Schorfheide (2007)
Slides and MatLab Code used for slides