MACROECONOMICS I, 5p
January 11, 2000
Teachers
Fabrizio Zilibotti, and
Martin Ljunge. (TA).
Reading list and course plan spring 2000
This is the first in the two course sequence in macroeconomics. This sequence is compulsory for doctoral students at SSE/SU. The course will not follow any textbook strictly. However, as a student of macro, you should have access to a number of textbooks. Here is a list of books we will make use of and which we think may prove to be of value for you, during the course or later.
This is a good and comprehensive text on growth. Another useful recent book, which covers a broader range of topics and which will be particularly important to those intending to pursue research in growth-related areas (although it will be of limited ues in this macro course) is
If you are interested in international macro, you may want to buy
A book that provides a good introduction to many topics and often a somewhat less formal presentation is
A general, and good macro text that you certainly may have use for is
Lastly,
provide a deeper and more rigorous treatment of many of the topics and can be recommended to the interested student.
References with stars (*) should be read by everybody. The students who plan to specialize in macro should also read all journal articles. We are also providing extensive lecture notes, which you hopefully will find useful.
In addition to the formal requirements, Micro I-II and Matfu I-II, we assume familiarity with intermediate macroeconomics, at least at the level of:
* Lecture Notes
* Hall, R., 1978, "Stochastic Implications of the Life Cycle Permanent Income Hypothesis," Journal of Political Economy, December, 971-87.
* Blanchard, O. and G. Mankiw, 1988, "Consumption: Beyond Certainty Equivalence" American Economic Review, May, 173-177.
* Kimball, Miles, 1990, "Precautionary Saving in the Small and in the Large", Econometrica, 58.
* OR, Section 2.1-3
* Carrol, C., and L. Summers, 1989, "Consumption growth parallels Income Growth; Some New Evidence," NBER Working Paper No. 3090.
* Campbell, J., and A. Deaton, 1989, "Why is Consumption so Smooth?", Review of Economic Studies, 56, 357-374.
* Caballero, R., 1993, "Durable Goods: An Explanation for Their Slow Adjustment," Journal of Political Economy, Vol. 101, No. 2, 351-383.
* Lucas, R., 1976, "Econometric Policy Evaluation: A Critique", Carnegie Rochester Conference Series on Public Policy 1, 19-46.
Campbell, J., and A. Deaton, "The Response of Consumption to Income: a Cross-Country Investigation," European Economic Review, 35, 721-.
Mankiw, G., 1982, "Hall’s Consumption Hypothesis and Durable Goods," Journal of Monetary Economics, 10, 417-25.
* BX, Ch. 4 (Sect. 4)
Romer, D., 1995, Ch. 2 (Sects 7-9) in Advanced Macroeconomics, (McGraw-Hill).
* OR, section 3.2-4.
Diamond, P. (1965), "National Debt in a Neoclassical Growth Model", American Economic Review, 55.5, 1126:1150.
Romer, D., 1995, Ch. 2 (Sects. 1-6, 14) in Advanced Macroeconomics, (McGraw-Hill).
Samuelson, P.A., 1958, "An Exact Consumption-Loans Model with or without the Social Contrievance of Money," Journal of Political Economy, December, 467-482.
* BF, Ch. 3
Diamond, P., 1965, "National Debt in a Neo-Classical Growth Model", American Economic Review, December, 1126-1150.
Persson,T., 1985, "Deficits and Intergenerational Welfare in Open Economies," Journal of International Economics, 67-84.
Samuelson, P.A., 1958, "An Exact Consumption-Loans Model with or without the Social Contrievance of Money," Journal of Political Economy, December, 467-482.
* Lecture Notes.
*BF, Ch 10 (Sect. 1)
* Lucas, R., 1978, "Asset Pricing in an Exchange Economy", Econometrica, November, 1429-45.
* Mehra, R. and E. Prescott, 1985, "The Equity Premium: A Puzzle", Journal of Monetary Economics, 145-62.
* Mankiw, G. and M. Shapiro, 1986, "Risk and Return, Consumption Beta versus Market Beta", Review of Economics and Statistics, 68-3, 452-59
Romer, D., 1995, Chapter 7 (Sect. 5) in Advanced Macroeconomics, (McGraw-Hill).
Sargent, T., 1987, Ch. 3 in Dynamic Macroeconomic Theory, Harvard University Press.
* OR, sections 5.1-3.
French, Kenneth R. and James M. Poterba, (1991), "Investor Diversification and international equity markets.", American Economic Review, 81, 222-26.
* Lecture Notes.
*BX, Introduction
AH, Introduction
Baumol W. "Productivity Growth and Convergence: What the Long-Run Data Show", American Economic Review, 76, 5, 1072-85, 1986.
Maddison A. "Phases of capitalist Development", Oxford University Press, 1982
* Lecture Notes.
*BX, Chapter 1
* Solow R. "A Contribution to the Theory of Economic Growth", Quarterly Journal of Economics , 70, 1, 65-94, 1957.
* Mankiw D., D. Romer, and D. Weil "A Contribution to the Empirics of Economic Growth", Quarterly Journal of Economics, 107, 2, 407-38, 1992.
AH, Chapter 1.1 and 1.5
Barro R. "Economic Growth in a Cross-Section of Countries", Quarterly Journal of Economics, 106, 2, 407-43, 1991.
Grossman G. and E. Helpman "Innovation and Growth in the Global Economy" (Ch. 2.1), MIT Press, 1991.
* Lecture Notes.
* BX, Chapter 2
AH, Chapter 1.2
Cass D. "Optimum Growth in an Aggregative Model of Capital Accumulation", Review of Economic Studies, 32, 233-40, 1965
Grossman G. and E. Helpman "Innovation and Growth in the Global Economy" (Ch. 2.2), MIT Press, 1991.
* Lecture Notes.
* BX, Chapter 4.1 and 4.2
AH, Chapter 1.4
Rebelo S. "Long-Run Policy Analysis and Long-Run Growth;, Journal of Political Economy, 99, 500-21, 1991
Romer P. "Capital Accumulation and Long-Run Growth;, in Barro R. (ed.) "Modern Business Cycle Theory;, Basil Blackwell, 1989
* Lecture Notes.
* BX, Chapter 4.3
Sheshinsky E. "Optimal Accumulation with Learning-by-Doing", in K. Shell (ed.) "Essays on the Theory of Optimal Economic Growth" Cambridge, 1967
Romer P. "Increasing Returns and Long-run Growth", Journal of Political Economy,94,5,1002-37, 1986
Grossman G. and E. Helpman "Innovation and Growth in the Global Economy" (Ch. 2.3-2.4), MIT Press, 1991.
* Lecture Notes.
* BX, Chapter 4.4
Barro R. "Government Spending in a Simple Model of Endogenous Growth;, Journal of Political Economy, 98, S103-S125, 1990
* Lecture notes
* Romer P. "Endogenous Technical Change", Journal of Political Economy, 98, 5, S71-S102, 1990.
BX Chapter 6.1
Grossman G. and E. Helpman "Innovation and Growth in the Global Economy" (Ch. 1 and 3), MIT Press, 1991.
* Cooley T., and E. Prescott, Ch. 1 (Section 1) in "Economic Growth and Business Cycles", Cooley, T. (ed.). Frontiers of Business Cycle Research, Princeton University Press.
* Romer D., 1995, Ch. 4 (Section 1) in Advanced Macroeconomics, (McGraw-Hill).
* Cooley T., and E. Prescott, Ch. 1 (Sections 2-8) in "Economic Growth and Business Cycles", Cooley, T. (ed.). Frontiers of Business Cycle Research, Princeton University Press.
Lucas, R., "Understanding Business Cycles," Carnegie-Rochester Series on Public Policy 5, 7-29.
McCallum, B., "Real Business Cycle Models," in Barro, R. (ed.), Modern Business Cycle Theory, Harvard University Press.
Romer D., 1995, Ch. 4 (Sections 2-10) in Advanced Macroeconomics, (McGraw-Hill).