• Lectures: Tuesdays and Thursdays, 3 - 5:40pm, via Zoom

• Office hours: by appointment

• The class syllabus can be found here.

• Contacting me:

  • Email: dempsey.164@osu.edu

  • Please begin subject of all emails with "ECON 8863"

• The course is divided into 4 topic-specific modules, described below

• There will be one project which runs the course of the semester, divided into sub-assignments as outlined below

Lecture Notes are linked in each section. Primary reading for the day is listed in line with the lecture. Additional readings are bulleted below.

Module 1: Macro-Finance Foundations

1.12 Lecture 1a. Introduction to the course, financial frictions. Townsend (1979 JET).

1.14 Lecture 1b. Embedding financial frictions in macro models. Carlstrom and Fuerst (1997 AER).

• Bernanke, Gertler and Gilchrist (1999 HM), Carlstrom Fuerst and Paustian (2016 AEJ:Macro)

1.19 Lecture 1c. Introduction to international real business cycles (IRBC). Obstfeld and Rogoff Ch 5.

1.21 Lecture 1d. Quantitative IRBC models. Backus, Kehoe, and Kydland (1992 JPE).

• Kehoe and Perri (2002 ECMA)

Module 2: Default

1.26 Lecture 2a. Presentation Day 1. Default with a representative agent (sovereign). Arellano (2008 AER).

• Eaton and Gersovitz (1981 REStud)

1.28 Lecture 2b. Default with heterogeneous agents (consumers). Chatterjee et al. (2007 ECMA).

2.2 Lecture 2c. Frontier topics in default: long-term debt, credit lines, and computation.

• Chatterjee and Eyigungor (2012 AER), Chatterjee et al. (2020), Raveendranathan (2020 RED)

Module 3: Corporate Finance

2.4 Lecture 3a. Benchmarks: data and the Modigliani-Miller Theorem

• Rajan and Zingales (1995 AER), Whited 1992, Fazzari, Hubbard, and Petersen (1988 Brookings)

2.9 Lecture 3b. Dynamic corporate finance. Gomes (2000 AER).

2.11 Lecture 3c. Presentation Day 2. Corporate finance and the business cycle. Jermann and Quadrini (2012 AER).

Module 4: Banking and Financial Intermediation

2.16 Lecture 4a. Data and micro-foundations. Diamond and Dybvig (1983 JPE).

• Holmstrom and Tirole (1997 QJE), Kashyap and Stein (2000 AER)

2.18 Lecture 4b. Quantitative macro banking models. Gertler and Kiyotaki (2011 HM)

• Crouzet (2018 REStud)

2.23 INSTRUCTIONAL BREAK -- NO CLASS

2.25 Lecture 4c. The financial crisis of 2008. Brunnermeier (2009 JEP).

• Gorton and Ordonez (2014 AER), Gorton and Metrick (2012 JFE), Adrian et al. (2012 NBER Macro Annual)

3.2 Final Presentations.

Due dates listed in bold red.

Project

1.26 Phase 1: Question and Literature Review

2.12 Phase 2: Framework and Initial Results

3.2 Phase 3: Final

Problem Sets

1.21 PS1 (solutions)

2.4 PS2 (solutions)

2.18 PS3 (solutions)