MACROECONOMICS I, 5p
Teachers
Reading list and course plan spring 1998
January 27, 1998
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. A main text is, however,
This book is recommended for all students and will be denoted OR below.
provides a good introduction to many topics and often a somewhat less formal presentation.
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. Other articles should be read by the students who plan to specialize in macro.
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.
* OR, section 3.1 and 3.7.
Barro, R. and X. Sala-i-Martin, 1995, Ch. 4 (Sect. 4) in Economic Growth, (McGraw-Hill).
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.
* OR, section 3.6.
*Persson, T. 1985, "Intergenerational welfare in a open economies," Journal of International Economics, 19, 67-84.
* Lecture Notes.
* 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
Blanchard, O. and S. Fisher,1989, Ch 10 (Sect. 1) in Lectures in Macroeconomics, MIT Press.
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.
* Lewis, K. (1995), "Puzzles in International Financial Markets", (Chapter 37, section 2) in Grossman,G and K. Rogoff, (eds.) Handbook of International Economics, North-Holland.
French, Kenneth R. and James M. Poterba, (1991), "Investor Diversification and international equity markets.", American Economic Review, 81, 222-26.
Maddison, A., 1991, Ch. 3 in Dynamic Forces in Capitalist Development, (Oxford University Press.
Romer, P., 1989, "Capital Accumulation in the Theory of Long-Run Growth", Ch. 2 in Barro, R. (ed) Modern Business Cycle Theory, (Harvard University Press).
* OR, Section 7.1.1
Barro, R. and X. Sala-i-Martin, 1995, Ch. 1 (Sects. A-B) in Economic Growth, (McGraw-Hill).
Solow, R., 1956, "A Contribution to the Theory of Economic Growth", Quarterly Journal of Economics, February, 65-94.
* OR, Section 7.1.2
Barro, R. and X. Sala-i-Martin, 1995, Ch. 2 in Economic Growth, (McGraw-Hill).
*OR, section 7.3.1
Barro, R. and X. Sala-i-Martin, 1995, Ch. 1 (Sect 3) and Ch. 4 (Sects 1-3) in Economic Growth, (McGraw-Hill).
Rebelo, S., 1991, "Long-Run Policy Analysis and Economic Growth", Journal of Political Economy, 500-21.
Romer D., 1995, Ch. 3 (Sects. 1-5) in Advanced Macroeconomics, (McGraw-Hill).
Romer, P., 1986, "Increasing Returns and Long-Run Growth", Journal of Political Economy, 1002-37.
* OR, sectionm 7.3.2-3
*Helpman, E., 1992, "Endogenous Macroeconomic Growth Theory", European Economic Review, May, 237-68.
Barro R. and X. Sala-i-Martin, 1995, Ch. 5-7 in Economic Growth, (McGraw-Hill).
Lucas, R., 1988, "On the Mechanics of Economic Development", Journal of Monetary Economics, 3-42.
Romer D., 1995, Ch. 3 (Sects. 6-11) in Advanced Macroeconomics, (McGraw-Hill).
* 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).
* OR, 7.4.
* 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.
* Backus D., P. Kehoe, and F. Kydland, Ch. 11 "International Business Cycles: Theory and Evidence", in 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.
Hansen G., 1985, "Indivisible Labor and the Business Cycle", Journal of Monetary Economics 16, pp 309-327.
Kydland F., Ch. 5: "Business Cycles and Aggregate Labor Market Fluctuations", in Cooley, T. (ed.). Frontiers of Business Cycle Research, Princeton University Press.
Romer D., 1995, Ch. 4 (Sections 2-10) in Advanced Macroeconomics, (McGraw-Hill).