Lecturer


    Contact details

    School of Economics and Finance
    Queen Mary, University of London
    Mile End Road
    London, E1 4NS
    United Kingdom
    email: r.sustek@qmul.ac.uk


    Research areas: Macroeconomics, real estate finance, monetary economics




  • E1Macro workshop in macroeconomic theory held at Queen Mary, 9-10 May 2017, organised by Tatsuro Senga and myself (link)
 
Publications

  • "Plant-level nonconvex output adjustment and aggregate fluctuations," Journal of Monetary Economics, vol. 58(4), pages 400-414, 2011. (article)
  • "Monetary Business Cycle Accounting," Review of Economic Dynamics, vol. 14(4), pages 592-612, October, 2011. (article)
  • "Monetary aggregates and the business cycle," Journal of Monetary Economics, vol. 57(4), pages 451-465, May, 2010. (article)

        
Earlier WP versions of published papers are available here.




Working papers



On-going research projects

In the presence of long-term nominal mortgages, monetary policy affects the real value of mortgage payments that homeowners have to make. The size and direction of these  effects depends on the mortgage type (fixed vs adjustable rate) and the stages of the `homeownership life-cycle' of the household. Furtermore, by affecting the cost of new mortgages, monetary policy affects housing demand and thus redistributes wealth further via house prices. Using an overlapping generations economy, we try to provide an estimate of these effects.

Using a new, easily applicable, methodology, we estimate the passthrough from monetary policy interest rates into mortgage debt servicing costs for a number of developed economies and provide a decomposition of the passthrough into a number of the channels.

Embeding Mincer-Becker view of consumption into a dynamic general equilibrium model with investment-specific technological progress, we estimate cosumption due to new technologies and the resulting effect on the welfare costs of business cycles.

We document the computational gains from an approximation to mortgage contracts in DSGE models.




 Courses I teach or have recently taught


Macro I. First-half of a first-year PhD macro sequence. Covers the basics of recursive methods: Markov processes, dynamic programming, recursive competitive equilibrium, promised utility, and aggregation. Discusses the issues of existence, uniqueness and convergence and problems with both continuous and discrete variables. The theoretical concepts are accompanied by computational methods and various applications.

Business Cycles. Third-year undergraduate course. Using a two- or three- period OLG models with simple functional forms, the course introduces students to economic dynamics. Topics covered include Pareto optimality, the sustainability of government debt, demographics and asset prices, financial intermediation and banking crisis, as well as short-term fluctuations due to real and nominal shocks.

Macro and the Real Estate. A part of a second-year PhD macro topics. The aim is to get students quickly to the frontier of research on the macroeconomic aspects of real estate. The course covers three areas, focusing on the main questions, tools, data, and some recent papers: i) housing and the business cycle, ii) tenure, mortgage, and portfolio choice, and iii) housing and monetary policy.

Monetary Economics. A part of a sequence of an MSc-level course. Starts with a basic RBC model and in a one-thing-at-a-time fashion introduces inflation and the nominal interest rate, commodity prices, taxes, sticky prices,sticky wages, and a banking sector with inside and outside money. Concludes with the basics of dynamic asset pricing theory and models of the term structure of interest rates.The aim is to provide an insight into the equilibrium effects of the various features of typical DSGE models without requiring the students to use any computational methods.