Best U.S. departments in DSGE and New Keynesian Models

[walt526]

My interests are micro, so I only study enough macro stuff to pass my courses. But it seems to me that "New Keynesian" is often being used to describe any mathematically rigorous macro model (i.e., DSGE) that is decidedly not RBC, regardless of whether or not that model actually features any interpretation of Keynes.

Shouldn't Harvard deserve a mention among the top NK schools?

[Tex Jansen]

The tools that are used to solve DSGE models are pretty much the same for both RBC and NK type models. It therefore is possible to go back and forth. I am skeptical, however, about the feasibility of doing NK work at a place like Minnesota. I doubt that you would be able to form a committee. And places certainly do hire faculty based on the NK/neo-classical divide.

I define the NK framework as a class of reasonable well micro-founded models with monopolistic competetion combined with a nominal rigiditidy. The nominal rigidity is what places it in the tradition of the General Theory. Other distortions such as information frictions or other types of incomplete markets do not make a model New Keynesian, although they may be studied in a NK model.

I agree with Walt that Harvard certainly belongs. They are terrible in almost all types of economics, but this is an exception.

[Gecko]

Originally Posted by Tex Jansen

I agree with Walt that Harvard certainly belongs. They are terrible in almost all types of economics, but this is an exception.

what? harvard terrible in all types of econ?

[beagle07]

I really think you would have a hard time specializing in NK DSGEs at Minnesota, Penn, or Chicago. I don't think there would be much resistance at most other top places (like Harvard), but the most famous NK DSGE papers have come out of people at Columbia, NYU, and Princeton.

[Gecko]

surprisingly, Penn is quite open even though they traditionally are a New classical school~

[Adamo Smith]

dsgenk

[Gecko]

Its a little bit hard to calibrate certain concepts, like sunspots..

[asianecon]

I'm not really sure how you guys define New Keynesian and how you formulated the idea that Northwestern is "neoclassical" but reading Chari, Kehoe and McGrattan (2009, AEJ: Macro) it seems ironic that NU's top macroeconomists' arguably most famous paper is labelled as New Keynesian...