Empirical Macroeconomics and Finance

This course develops empirical methods to investigate key questions in macroeconomics and finance, and discusses the existing empirical evidence on those questions. While models developed in macroeconomics and finance provide theoretical frameworks for understanding economic fluctuations, long-run growth, and policy interventions, empirical work is crucial for testing these models and informing policy decisions. The course will examine key macroeconomics/finance questions—such as the sources of short-run fluctuations, the determinants of long-run growth, or the role of financial markets in business cycles—through the lens of modern empirical techniques. We will put a special emphasis on implications for the design of economic policy. For instance, we will consider what the empirical evidence tells us on questions such as: can stimulus checks boost consumer spending? does monetary policy affect investment? should governments invest in R&D?  Special attention will be given to recent advances in identification strategies, including high-frequency event studies, differences-in-differences approaches, and instrumental variables tailored to macroeconomic settings. By integrating empirical evidence with theoretical insights, the course aims to equip students with the tools to critically assess macroeconomic policy and contribute to ongoing debates in the field.