The main text for the course is Romer, David. Advanced Macroeconomics , 2nd ed. New York: McGraw Hill, 2001. ISBN: 0072318554. Supplementary readings include lecture notes, as well as journal articles and selections from other books. The other items are recommended but are not required.
| LEC # | TOPICS | READINGS |
|---|---|---|
| 1 | Introduction to Growth Facts and Growth Models |
Required Readings Romer, D. Advanced Macroeconomics. 2001, chap. 1. ISBN: 0072318554. Solow, R. M. "A Contribution to the Theory of Economic Growth." Quarterly Journal of Economics 70 (1956): 65-94. Recommended Readings Barro, R. J., and X. Sala-i-Martin. Economic Growth. 1995, chap. 1 and 12. |
| 2 | The Neoclassical Growth Model |
Required Readings Romer, D. Advanced Macroeconomics. 2001, chap. 2. ISBN: 0072318554. Mankiw, N. G., D. Romer, and D. Weil. "A Contribution to the Empirics of Economic Growth." Quarterly Journal of Economics 107 (1992): 401-437. Recommended Readings Barro, R. J., and X. Sala-i-Martin. Economic Growth. 1995, chap. 2 and 3. Blanchard, O., and S. Fischer. Lectures on Macroeconomics. 1989, chap. 3. |
| 3 | Overlapping Generations |
Required Readings Romer, D. Advanced Macroeconomics. 2001, chap. 2. ISBN: 0072318554. Barro, R. J. "Are Government Bonds Net Wealth?" Journal of Political Economy 82 (1974): 1095-1117. Diamond, P. "National Debt in a Neoclassical Growth Model." American Economic Review 55 (1965): 1126-1150. Recommended Readings Blanchard, O. "Debt, Deficits and Finite Horizons." Journal of Political Economy 93 (1985): 223-247. |
| 4 | Applications: Fluctuations, Investment, Asset Pricing, Public Finance, Behavioral |
Required Readings Romer, D. Advanced Macroeconomics. 2001, chap. 7 and 8. ISBN: 0072318554. Barro, R. J., "On the Determination of the Public Debt." Journal of Political Economy 87 (1979): 940-71. Recommended Readings Barro, R. "Ramsey Meets Laibson in the Neoclassical Growth Model." Quarterly Journal of Economics 114 (1999): 1125-1152. Laibson, D. "Golden Eggs and Hyperbolic Discounting." Quarterly Journal of Economics 112 (1997): 443-478. Lucas, R. E, Jr. "Asset Prices in an Exchange Economy." Econometrica 46 (1978): 1429-1445. |
| 5 | Endogenous Growth: Externalities, R&D, Innovation |
Required Readings Romer, D. Advanced Macroeconomics. 2001, chap 3. ISBN: 0072318554. Romer, P. M. "Increasing Returns and Long-Run Growth." Journal of Political Economy 94 (1986): S1002-S1037. Lucas, R. E., Jr. "On the Mechanics of Economic Development." Journal of Monetary Economics 22 (1988): 3-42. Romer, P. M. "Endogenous Technological Change." Journal of Political Economy 98 (1990): 71-102. Recommended Readings Barro, R. J., and X. Sala-i-Martin. Economic Growth. 1995, chap. 4-7. Lucas, R. E., Jr. "Making a Miracle." Econometrica 61 (1993): 251-272. Aghion, P., and P. Howitt. "A Model of Growth Through Creative Destruction." Econometrica 60 (1992): 323-351. |
| 6 | Real Business Cycles |
Required Readings Romer, D. Advanced Macroeconomics. 2001, chap. 4. ISBN: 0072318554. Kydland, F., and Prescott, E. C. "Time to Build and Aggregate Fluctuations." Econometrica 50 (1982): 1345-1370. Lucas, R. E., Jr. "An Equilibrium Model of the Business Cycle." Journal of Political Economy 81 (1975): 1113-1144. Recommended Readings Barro, R. Macroeconomics.Chap. 9. MIT Press, 1998. ISBN: 0262024365. Prescott, E. C. "Theory Ahead of Business Cycle Measurement." Quarterly Review, Federal Reserve Bank of Minneapolis. 1986, pp. 9-22. Lucas, R. E., Jr. Models of Business Cycles. Oxford: Basil Blackwell, 1987. |
| 7 | The IS-LM Model |
Required Readings Romer, D. Advanced Macroeconomics. 2001, chap. 5. ISBN: 0072318554. Recommended Readings Blanchard, O. "Why Does Money Affect Output? A Survey." In Handbook of Monetary Economics. Edited by B. Friedman and F. Hahn. North Holland: 1990, pp. 779-835. |
| 8 | Incomplete Nominal Adjustment |
Required Readings Romer, D. Advanced Macroeconomics. 2001, chap. 6. ISBN: 0072318554. Mankiw, N. G. "Small Menu Costs and Large Business Cycles: A Macroeconomic Model of Monopoly." Quarterly Journal of Economics 100 (1985): 529-539. Recommended Readings Calvo, G. "Staggered Prices in a Utility-Maximizing Framework." Journal of Monetary Economics 12 (1983): 383-398. |
| 9 | Incomplete Financial Markets |
Required Readings Obstfeld, M. "Risk-Taking, Global Diversification, and Growth." American Economic Review 84 (1994): 1310-1329. Bernanke, B., and M. Gertler. "Agency Costs, Collateral, and Business Fluctuations." American Economic Review 79 (1989): 87-114. Recommended Readings Greenwood, J., and B. Jovanovic. "Financial Development, Growth, and the Distribution of Income." Journal of Political Economy 98 (1990): 219-240. Banarjee, A., and A. Newman. "Occupational Choice in the Process of Development." Journal of Political Economy 101 (1993): 274-298. |
| 10 | Unemployment |
Required Readings Romer, D. Advanced Macroeconomics. 2001, chap. 9 and 10. ISBN: 0072318554. Shapiro, C. and J. Stiglitz. "Equilibrium Unemployment as a Worker Discipline Device." American Economic Review 74 (1984): 433-444. Recommended Readings Diamond, P. "Aggregate Demand Management in Search Equilibrium." Journal of Political Economy 90 (1982): 881-894. |
| 11 | Consumption and Savings |
Required Readings Romer, D. Advanced Macroeconomics. 2001, chap. 7. ISBN: 0072318554. Recommeded Readings Hall, R. E. "Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence." Journal of Political Economy 86 (1978): 971-987. |