Empirical Macro-Finance Course-OLD

The financial sector plays a key role in macroeconomic fluctuations. The goal of the two six-week second year PhD courses is to provide an introduction to Macro-Finance, defined as the interaction between macro, or the real economy (think GDP, employment, consumption etc.), and finance or financial markets (think credit, asset prices etc.).

The two courses provide an “introduction to macro-finance”. Ernest Liu will teach the theory half, and Atif Mian will teach the empirical half. Ernest Liu’s course is part of second year Finance PhD sequence (and is officially titled “Corporate Finance”) and Atif Mian’s course is part of second year Macro sequence (titled “Empirical Macro-Finance”). We strongly encourage students taking either of these classes to sit in both courses. Each six-week course will have 12 lectures based on the following topics. For each topic, Ernest will cover the relevant theory in the morning class and Atif will cover the related empirical work in the afternoon class. The course first focuses on the business cycle linkages between macro and finance, and ends with a discussion of the long-run interplay between the two.

The project is explicitly open-source and all code is available on GitHub. We encourage teachers, researchers, and students to contribute or create their own versions of the course. All lecture materials are available here, including the LaTeX source code used to create them. We provide a range of ready-to-use code and datasets that replicate empirical patterns found in the literature, which can be used as starting point for student presentations or research projects.

Are you planning to use these materials? Do you have feedback or suggestions? We are always trying to improve and expand the course. Please get in touch: macrofinance@princeton.edu.

Lecture Materials

Theory slides

Theory video