Where do dynamic macro people work?

[macroeconomicus]

I wonder, is dynamic macroeconomics useful for those considering empirical type of work (e.g. what the central banks or private sector economists do) or are the dynamic macro people automatically relegating themselves to doing theoretical research and teaching in the academia? It's not like I don't necessarily want to work in the academia. However, I would like to be able to do empirical research and, for example, to be able to give a speech sometimes to industry executives or MBA students and have them understand what I am saying and actually find it to be at least peripherally useful information. Given my preferences, should I consider applying to schools that are do only dynamic macroeconomics?

 

By the way, how well does monetary economics tie in with Minnesota-style economics?

[Cassin]

Come again? Dynamic Stochastic General Equilibrium is a necessary (and not the only!) macro tool. There is no such thing as static macro! :) Discrete or continuous time, all macro is about intertemporal choices (saving vs. consumption) or phenomena (business cycles, growth).

[sonicskat]

Basically all modern macro techniques are dynamic in nature. Almost all problems ask us to look through an inter temporal viewpoint. The computational methods you're thinking of are actually empirically driven and tested. By using dynamic techniques, you can explain phenomenon in data. Therefore, you can actively test theories in a bigger setting.

 

Many Many people are interested in this sort of Macro. My undergrad recently hired a guy that did dynamic macro...he had also received job offers from some very well known european banks. Also, the Atlanta fed (and of course Minnesota) are very active in this type of research.

 

I'm sure finance firms are very interested as well. Prescott has done a lot of work on the stock market, and financial markets are certainly applicable to dynamic problems.

[econphilomath]

From what I know, DSGE models are the lastest thing at central banks and any decent CB has its own model or is working on one. Some private banks are also developing DSGE models. All this would lead one to believe there is a strong demand for "dynamic macro" people of this sort at these institutiones.