International Macroeconomics1
Stephanie Schmitt-Groh2
e
Mart Uribe3
n
First draft, Fall 1998
Last updated: June 25, 2014
1
The seeds for this manuscript were lecture notes taken by Alberto Ramos in
a course on International Finance that Mike Woodford taug
Lecture 3
A Theory of Current Account Determination
Viktoria Hnatkovska
ECON 456
c Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Outline
We build a model of an open economy to study the det
Lecture 4
Uncertainty and the Current Account
Viktoria Hnatkovska
ECON 456
c Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Outline
Real world is uncertain, i.e. there are
uctuations in Q;
Lecture 2
Current Account Sustainability
Viktoria Hnatkovska
ECON 456
c Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Key question: Are the observed trade balance and current account decits
Part 2.1 - The Simple Regression Model for Experimental Data;
Part 1 (Binary Treatment)
Florian Homann
Vancouver School of Economics
University of British Columbia
January - April 2015
0
1
Instructions for this Chapter
The material covered in this sectio
Economics 326
Methods of Empirical Research in Economics
Part 2.1: The Simple Regression Model for
Experimental Data: Part 3 (Hypothesis Testing)
Florian Homann
University of British Columbia
March 10, 2015
Hypothesis testing
I
In our simple linear regres
Part 2.1 - The Simple Regression Model for Experimental Data;
Part 2 (Continuous Treatment)
Florian Homann
Vancouver School of Economics
University of British Columbia
January - April 2015
0
1
Instructions for this Chapter
This set of notes continues wit
Part 1.3 - Introduction to Mathematical Statistics
Florian Homann
Vancouver School of Economics
University of British Columbia
January - April 2015
0
1
Instructions for this Chapter
Read appendix C in the Wooldridge book.
Go over the lecture slides abou
Economics 326
Methods of Empirical Research in Economics
Part 1.3: Introduction to Mathematical Statistics
Florian Homann
University of British Columbia
January 27, 2015
Introduction
I
In the review of probability we have discussed concepts such
as probab
Part 1.2 - From Economic to Econometric Models
Florian Homann
Vancouver School of Economics
University of British Columbia
January - April 2015
0
1
Instructions for this Chapter
First read chapter 1 and chapters 2.1 and 3.1 in the Wooldridge book. It is
Economics 326
Methods of Empirical Research in Economics
Part 1.2: From Economic to Econometric Models
Florian Homann
University of British Columbia
January 19, 2015
Economic Models
I
I
Economic models seek to relate some economic variables of
interest Y1
Part 1.1 - Review of Probability
Florian Homann
Vancouver School of Economics
University of British Columbia
January - April 2015
0
1
Instructions for this Chapter
Read this chapter and make sure you understand each concept.
Read Appendix B in the Woold
Neighborhood Effects on the Long-Term Well-Being of Low-Income
Adults
Jens Ludwig et al.
Science 337, 1505 (2012);
DOI: 10.1126/science.1224648
This copy is for your personal, non-commercial use only.
Permission to republish or repurpose articles or porti
Econ 326 (Florian Homann)
Assignment 5
The due date for this assignment is Thursday, April 9 2015, before the class
starts.
1. Wooldridge, chapter 3, problems 3, 5, 9.
2. Wooldridge, chapter 4, problems 2, 6, 7.
3. Wooldridge, chapter 7, problems 2, 3.
4.
Econ 326 (Florian Homann)
Assignment 2
The due date for this assignment is Tuesday, February 3rd 2015, before the class
starts.
1. Let X and Y be two discrete random variables. The set of possible values for X is
fx1 ; : : : ; xn g; and the set of possibl
Lecture 2
Current Account Sustainability
Viktoria Hnatkovska
ECON 456
c Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Key question: Are the observed trade balance and current account decits
Lecture 3
A Theory of Current Account Determination
Viktoria Hnatkovska
ECON 456
c
Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Outline
We build a model of an open economy to study the det
Lecture 4
Uncertainty and the Current Account
Viktoria Hnatkovska
ECON 456
c Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Outline
Real world is uncertain, i.e. there are
uctuations in Q;
Chapter 8
Heteroskedasticity
Introduction
The linear regression equation is:
y i = 1 + 2 x i 2 + 3 x i 3 + . . . + K x iK + e i
for
i = 1, 2, . . . , N
The adequacy of the least squares (OLS) estimation results depend on
a number of assumptions:
! Correct
Chapter 6 More Multiple Regression Model
The F-test Joint Hypothesis Tests
Consider the linear regression equation:
(1)
y i = 1 + 2 x i 2 + 3 x i 3 + 4 x i 4 + e i for i = 1, 2, . . . , N
The t-statistic give a test of significance of an individual explan
International Macroeconomics1
Stephanie Schmitt-Groh2
e
Mart Uribe3
n
First draft, Fall 1998
Last updated: June 25, 2014
1
The seeds for this manuscript were lecture notes taken by Alberto Ramos in
a course on International Finance that Mike Woodford taug
Lecture 8
Exchange Rates and the Foreign Exchange Market:
An Asset Approach
Viktoria Hnatkovska
ECON 456
c
Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Outline
What determines exchange ra
Lecture 1
National Income Accounting and the Balance of Payments
Viktoria Hnatkovska
ECON 356
Spring 2014
1
National Income Accounting: Review
Denition 0.1 GNP is the value of all nal goods and services produced by countrys factors
of production and sold
Lecture 11
Fixed Exchange Rate Regime
Viktoria Hnatkovska
ECON 456
c
Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Overview
Quantity of money depends on the exchange rate regime maintained
Lecture 10
Prices and Exchange Rates in the Long-Run
Viktoria Hnatkovska
ECON 456
c
Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Overview
In 1950 the yen traded at 360 yen/$. In the spring
Lecture 9
Money, Interest Rates and Exchange Rates
Viktoria Hnatkovska
ECON 456
c
Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Overview
Interest rate parity conditions suggest which facto
Lecture 1
National Income Accounting and the Balance of Payments
Viktoria Hnatkovska
ECON 456
c
Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
National Income Accounting: Review
Denition 0.1
Lecture 7
Fiscal Decits
and the Current Account
Viktoria Hnatkovska
ECON 456
c
Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Outline
We study the remaining component of the current account,
Lecture 6
External Adjustment
in Small and Large Economies
Viktoria Hnatkovska
ECON 456
c
Viktoria Hnatkovska. Not to be copied, used, or revised without explicit permission from the copyright owner.
1
Outline (Chapter 6.1-6.5 SGU)
We take stock of our nd
Lecture 2
Current Account Sustainability and
Intertemporal Approach to Current Account
Viktoria Hnatkovska
ECON 356
Spring 2014
1
Key question: Are the observed trade balance and current account decits in the U.S.
sustainable in the long run?
The answer