This course will examine modern applied research on macroeconomic and financial issues. The main objective is to allow students to understand, critically appraise and replicate 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 specifications;
• 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

Minimum 4 hrs contact per week.

At least an average of 65% (or equivalent) in the final two years of an Australian undergraduate degree with introductory level courses in Economics, Statistics and Econometrics

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,

For further information please refer to course website