Advanced Macroeconomic Theory II

Macro implications of micro imperfections. The "cleansing" effect of recessions and the impact of allocative versus aggregate shocks. Recent models of consumption and empirical tests of risk-sharing. How the distribution of income or wealth affects aggregate growth and fluctuations. Role of imperfect credit markets, distributional conflict and political economy. Endogenous, skill-biased, technological change and human capital accumulation; implications for growth and social mobility.