OF THE DISSERTATION Essays on Learning and Macroeconomics

Ideas taught at the Macroeconomics Principles level should satisfy two goals. First, they should be simple enough to be both understandable and memorable for the beginning student. Second, they should be consistent both with the modern economy and with the macroeconomic models of this econonly that are used in practice for policy evaluation. There is no necessary conflict between these two goal...

ESSAYS IN INTERNATIONAL MACROECONOMICS by Xuan Liu Department of Economics Duke University

In the data country portfolios are heavily biased toward domestic assets. Standard onegood international macro models predict that, due to the presence of non-diversifiable labor income risk, country portfolios should be heavily biased toward foreign assets; this discrepancy constitutes the international diversification puzzle (Baxter and Jermann, 1997). We show that a simple extension of one-g...