Instructor:
Francesco Zanetti (Associate Professor of Economics at the University of Oxford; Bundesbank Guest-Professor)
Description:
This course is designed to introduce participants to the theory and analytical tools to develop models with unemployment and spare capacity to study their influence on aggregate fluctuations and economic policies. The course will focus on the search and matching theory in labor and goods markets and the role that search
frictions play for the effect of monetary and fiscal policies. Applications will include practical sessions in MATLAB.
Topics covered
• The Diamond-Mortensen-Pissarides model of the labor market.
• Exogenous and endogenous separations in labor market models.
• Search in the goods markets with applications to fiscal and monetary policy
• Search and supply-chain-disturbances.
• The effect of labor market institutions with applications to monetary policy.
Literature:
Book
Pissarides, C., 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press.
Articles
Ghassibe, M. and Zanetti, F. 2022. "State dependence of fiscal multipliers: the source of fluctuations
matters," Journal of Monetary Economics, Elsevier, vol. 132(C), pages 1-23.
Michaillat, P. and Saez, E. 2015. "Aggregate Demand, Idle Time, and Unemployment," The Quarterly Journal
of Economics, Oxford University Press, vol. 130(2), pages 507-569.
Thomas, C. and Zanetti, F., 2009. "Labor market reform and price stability: An application to the Euro Area,"
Journal of Monetary Economics, Elsevier, vol. 56(6), pages 885-899.
Zanetti, F., 2011. "Labor market institutions and aggregate fluctuations in a search and matching model,"
European Economic Review, Elsevier, vol. 55(5), pages 644-658.
Time & venue:
For course timing and venue please see the course schedule.
Exam:
A term paper and a short research proposal.
More information can be found in course syllabus.
Francesco Zanetti
