JEM017 - Business Cycles Theory

Credit: 6
Credit ETCS: 6
Hours weekly: 2/2
Status: EEI and EP - elective
English
ET - mandatory
F,FM and B - elective
Masters - all
MEF - elective
Semester - winter
Obligatory courses:
Recommended courses:
Course supervisors: prof. Ing. Miloslav Vošvrda CSc.
Teachers: prof. Ing. Miloslav Vošvrda CSc.
Assistants: PhDr. Tomáš Adam
PhDr. Jaromír Baxa Ph.D.
Mgr. Lukáš Vácha Ph.D.
Schedule: Wednesday, 15:30 - 18:20, room number 601
Announcements:
Literature: Enders, W.: Applied Econometric Time Series, 2nd ed., Wiley, 2004
Kočenda, E., Černý, A.: Elements of Time Series Econometrics: An Applied Approach, Karolinum 2007
Mills, T.C.: Long Term Trends and Business Cycles, Vol. I, II, The International Library of Critical Writings in Economnics, 149, Elgar, 2002
Niemira, M.P., Klein, and P.A.: Forecasting Financial and Economic Cycles, Wiley 1994
Peasaran, M.H., and Potter: Nonlinear Dynamics, Chaos and Econometrics, Wiley, 1994
Puu, T.: Nonlinear Economic Dynamics, Springer, 1997
Sargent T: Dynamic Macroeconomic Theory, Cambridge, 1987
Stock, J.H. Watson, M.W.: Business cycles fluctuations and U.S. macroeconomic time series. In: Taylor, J.B., Woodford, M. (eds): Handbook of Macroeconomics, Vol. 1, Elsevier, 1999

Software: Gretl, Eviews, R-project, TSM

On-line support:
webmathematica.fsv.cuni.cz (Interactive materials with Mathematica)
http://dl1.cuni.cz/course/view.php?id=880 (Distance learning support)
Description: This course is devoted to an analysis of business movement using econometric techniques. We will cover fields like isolation of trends and cycles using deterministic and stochastic methods; extraction of seasonal movements; recession dating procedures, multivariate models of business cycles, decompositions of business cycles movements etc.
This is a workshop-style course. Prior knowledge of econometric techniques is a must. Students are expeted to apply covered techniques in problem sets and actively present their results during the course.
Content: 1. Introduction to the business cycles research and review of econometric techniques
2. Stationary linar models (AR, MA, ARMA models and their properties)
3. Stationarity: economic and econometric interpretation, unit-root tests
4. Unit-root tests under structural instability. Seasonality.
5. introduction into spectral analysis: time domain and frequency domain
6. Spectral analysis: Filtering Economic Time Series
7. Recession dating procedures: NBER approach and simplified versions
8. Nonlinear models: Regime shift models
9. Nonlinear models: Time-varying parameter models and Kalman filter
10. Multivariate models: Introduction into VAR models
11. Multivariate models: Identification of VAR models
12. Multivariate models: Cointegration and common trends.
Seminar:
Examination dates:
Course requirements: homeworks 40%, midterm 20%, finalterm 40% (tentative)