Short Macro Course

DEFAP, Universita’ Cattolica di Milano, May 2013


Matteo Iacoviello

Federal Reserve Board
Web page:

Course Description

This is a short topics course in Macro. I will cover models with financial frictions on households and models with occasionally binding constraints.

My lecture notes are here.




Reading List


1. Solving Dynamic Equilibrium Models

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* Uhlig, Harald (1997) “A Toolkit for Analyzing Nonlinear Dynamic Stochastic Models Easily''

* Schmitt-Grohe, Stephanie and Martin Uribe. “Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function.” Journal of Economic Dynamics and Control 28 (January 2004): 755-75.

* Dynare manual


2. Models with Occasionally Binding Constraints

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* Guerrieri, Luca and Matteo Iacoviello (2013), “Occbin: A Toolkit to Solve Models with Occasionally Binding Constraints Easily


3. Models with Housing and Financial Frictions

* Iacoviello, Matteo, and Stefano Neri (2010), “Housing Market Spillovers: Evidence from an Estimated DSGE Model,” AEJ Macro

* Iacoviello, Matteo (2013), “Financial Business Cycles

* Guerrieri, Luca, and Matteo Iacoviello, (2013), “Collateral Constraints and Macroeconomic Asymmetries,

* Iacoviello, Matteo (2005), “House Prices, Borrowing Constraints and Monetary Policy in the Business Cycle”, American Economic Review, May

* Campbell, Jeff, and Zvi Hercowitz (2006), “The Role of Collateralized Household Debt in Macroeconomic Stabilization”