This course will examine modern applied research on macroeconomic and financial issues. The main objective is to allow students to understand and critically appraise applied work on macroeconomic and financial topics.

Upon successful completion of the requirements for this course, students will be able to:

•  Select a model and combine from a model space comprising univariate or multivariate 
• Apply and explain the principles of parsimony and fit;
• Explain the methodology of Dynamic Stochastic General Equilibrium modelling;
• Reconcile theory and evidence; and,
• Conduct hypothesis and diagnostic testing.

There will be two assignments, a mid-term and a final examination. The final grade will be determined as

The assignments for EMET8010 require the use of MATLAB. Assignments for EMET3008 require no programming. The midterm and final examinations will be held according to the published university schedule posted at http://timetable.anu.edu.au/. It is the student's responsibility to keep abreast of any changes to the examination timetable. Final marks for the course will be based on the raw marks allocated for each assignment or examination. However, final marks may not be the same number as produced by that formula, as marks may be scaled. Any scaling applied will preserve the rank order of raw marks and may be either up or down.

Four contact hours per week.

EMET2008 Econometrics II: Econometric Modelling.

Primarily, the reading material will comprise the journal research papers listed on the reading list. Although pitched at a slightly higher level than EMET3008 and EMET8010, the following text is helpful to dip into:
Canova, F. (2007) Methods for Applied Macroeconomic Research, Princeton.
Other helpful background books include:
Enders, W. Applied Econometric Time Series,Wiley, 1995,
Hamilton, J. D., Time Series Analysis, Princeton, 1994,
Verbeek, M., A Guide to Modern Econometrics, Wiley, 2008.

Standard lecture facilities; computer labs.

For further information please refer to course website