EUI LECTURES Ellen McGrattan May 18-21, 2015 FTP site: ftp.mpls.frb.fed.us/pub/research/mcgrattan/eui15 The main slides are EUIlectures.pdf. Below, I provide details on how to navigate through my ftp site to find related materials and to replicate results shown in the slides. Lecture 1 ========= Objectives: -- Review BCA -- Discuss critiques of Christiano-Davis (2006) -- Compare it to SVARs See materials from: * Business Cycle Accounting (joint with V.V. Chari and Patrick Kehoe) Econometrica, 75(3): 781--836, May 2007. (ecta07.pdf) -- Go to ./sr328 * Comparing Alternative Representations, Methodologies, and Decompositions in Business Cycle Accounting (joint with V.V. Chari and Patrick Kehoe) Staff Report 384 Federal Reserve Bank of Minneapolis (sr384.pdf) -- Go to ./sr328 -- To generate figures in the lectures: (1) Figure showing tauk vs taux in Matlab, run > pwbca_tauk (2) Figure comparing methodologies in Matlab, run > pwbca_test * Are Structural VARs with Long-Run Restrictions Useful in Developing Business Cycle Theory? (joint with V.V. Chari and Patrick Kehoe) Journal of Monetary Economics, 55(8): 1337--1352, November 2008. -- Go to ./sr364/rbc/monte -- To generate figures in the lectures: (1) Figure showing QDSVAR results (alpha=.99) for responses of hours (model and SVAR population results) in Matlab, run > truth2.m > irtheory (results in IRsvar(:,2)) (2) Figure showing LSVAR results (alpha=0) for responses of hours (model and SVAR population results) in Matlab, run > truth2.m > irtheory (results in IRsvar(:,2)) -- See also: Comment on Gali and Rabanal's `Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S. Data' NBER Macroeconomics Annual 2004, MIT Press, 19: 289--308, 2005. Lecture 2 ========= Objectives: -- Moving beyond the accounting -- Some background papers -- Tech boom of the 90s -- Great recession of the 00s See materials from: * Taxes, Regulations, and the Value of US and UK Corporations (joint with Ed Prescott) Review of Economic Studies, 72(3): 767--796, July 2005. -- Go to ./sr309 -- To generate figures in the lectures: (1) Figure showing value of US corporations (equity plus net debt) in Matlab, run > figure1n (2) Figure showing equity values for US and UK corporations in Matlab, run > figure2 * Technology Capital and the US Current Account (joint with Ed Prescott) American Economic Review, 100(4): 1493--1522, September 2010. -- Go to ./sr406/codes/ -- To generate all results, run main.m in Matlab and pick case -- For background on theory, see also Openness, Technology Capital, and Development Journal of Economic Theory, 144(6): 2454--2476, November 2009. * Unmeasured Investments and the Puzzling US Boom in the 1990s (joint with Ed Prescott) American Economic Journal: Macroeconomics, 2(4): 88--123, October 2010. -- Go to ./sr369/MODELS/nonstoch -- To generate figures in the lectures: (1) Figures showing basic model without intangible investments in Matlab, run > bca_param > bca_wedges > bca_simul (choose to set labor and invetment wedges at 1990 level) (2) Figures showing exteded model with intangible investments in Matlab, run > intang_param > intang_wedges > intang_simul (choose to set invetment wedge at 1990 level) * A Reassessment of Real Business Cycle Theory (joint with Ed Prescott), American Economic Review, P&P, 104(5): 177-187, May 2014. -- Go to ./sr494/figures -- To generate figures, run aeadata.m in Matlab Lecture 3 ========= Objectives: -- Things I have learned since EUI lectures in 1996 See materials from: * Application of Weighted Residual Methods to Dynamic Economic Models in Computational Methods for the Study of Dynamic Economies, eds. R. Marimon and A. Scott, Oxford University Press, 1999. -- Go to ./eui96/codes/wrm/fem -- For finite element examples, compile and run .f files and use Matlab .m files to show results * The Optimum Quantity of Debt (joint with S. Rao Aiyagari) Journal of Monetary Economics, 42: 447--469, December 1998. The Optimum Quantity of Debt: Technical Appendix (joint with S. Rao Aiyagari) Annals of Economics and Finance, 4(1): 193--217, 2003. -- Go to ./sr203/ffiles -- To compute equilibria, compile and run optimal.f (various input files are provided)