040021 KU Current Topics in Macroeconomic Policy (MA) (2022S)

The course will be in cooperation with the Austrian National Bank (Österreichische Nationalbank, OeNB).

Aim of the Course:
The aim of this course is that students learn how to answer current policy-relevant topics in the area of macroeconomics using microeconomic data. Accounting for household heterogeneity has become increasingly important in the evaluation of macro-stabilization policies and their potential redistributive effects. In this course, students will use detailed microeconomic data to empirically document household heterogeneity across a variety of dimensions (for example, across income, wealth, gender, employment status, etc.). They will independently analyze the role of heterogeneity for a wide range of topics relevant to macro-stabilization policies, such as households’ savings behavior, the distribution of marginal propensities to consume (MPCs), households’ balance sheets, financial distress, and indebtedness.

Course Structure:
The course will be structured in two parts. First, there will be an introduction to core topics and methodologies. Students will learn about basic consumption theory (precautionary savings, borrowing constraints, the role of MPCs), the determinants for the effectiveness of fiscal stimuli (e.g. the role of (wealthy) hand-to-mouth consumers), and why households’ portfolios matter for the transmission of monetary policy.
In the second part, students will work in groups on assigned seminar topics. They will use microdata (the Household Finance and Consumption Survey, HFCS) and apply econometric knowledge to answer their research questions. Finally, the seminar projects will be presented in class.
Staff members of the OeNB will be involved in both parts of the course.