Macroeconomics I, Macroeconomics II and Macroeconomics III

The student will learn the basic tools of search equilibrium theory, the main paradigms that are used in macroeconomics applications of the theory, and the most recent theoretic and computational developments in the literature. The student will also learn to solve dynamic equilibrium models with search and matching frictions, and several macroeconomic applications of the theory (mainly to labor and housing markets).

PART I: Search Equilibrium Theory 1. Random search and Bargaining. 2. Directed or Competitive Search. 3. Random Search and Price Posting. PART II: Macroeconomic Applications to Labor Economics and Housing 1. Competitive search and cyclical properties of housing markets 2. Nash Bargaining and wealth accumulation 3. Labor markets with free entry of firms and heterogeneous workers. Competitive search and block recursivity. 4. Competitive search housing markets with risk averse traders and financial constraints 5. Applying the endogenous grid method to competitive search models with heterogeneous agents.

Learning activities Lectures Group and individual assignments Reading assignments and class discussions Office hours Methodology Lectures in which the professor teaches basic concepts, distributes assignments, and presents the readings necessary to complement the class activities. Critical readings of the material presented by the professor. Analysis of practical cases and problem solving of exercises provided in class to be solved individually or in teams. Presentation and discussion in class of topics related to the course as well as discussion of practical cases. Individual or team assignments.