Economics 603: Macroeconomics
Michael Devereux
Winter Term 2011
This course is being co-taught with Professor Henry Siu. The first half syllabus will cover two broad topics, models of economic growth, and models of financial market imperfections in macroeconomics
There are number of good general references for the material:
Economic Growth, Barro and Sala-Y-Martin 2nd Edition MIT Press 2003
An Introduction to Modern Economic Growth, Daron Acemoglu Princeton University Press 2009 (see also Acemoglu’s web page for lecture notes on this book)
Lectures on Macroeconomics, Blanchard and Fischer MIT Press 1992
The Economics of
Growth, Aghion and Howitt.
Cambridge,
MA: MIT Press, 2009.
For the section on financial market imperfections, we will cover journal articles only.
Question Sheet 1 (Due on Friday 14th January in Tutorial)
Question Sheet 2 (Due on Friday 28th January in Tutorial)
Question Sheet 3 (Due on Friday 11th
February in Tutorial)
Topics:
Economic Growth (not all these topics may be covered in the time available, but topics 1, 2, 3-5 and 7 will be covered)
1. Review of growth facts and basic models of economic growth, Solow and Neo-Classical Growth Model
Barro and Sala-I-Martin Chapter 1-2. Acemoglu chapter 1-3.
Aghion and Howitt chapter 1
Jones, Charles (1997), On The
Evolution of the World Income Distribution,.Journal of Economic Perspectives vol. 11, pp. 19-36.
Acemoglu, Daron, Simon Johnson and James Robinson (2002): .Reversal
of Fortune: Geography and Institutions in the Making of the Modern World Income
Distribution. Quarterly Journal of Economics, November 2002, volume 117.
Mankiw Romer Weil “A
Contribution to the Empirics of Economic Growth”, Quarterly Journal of
Economics, 1992
2.
Growth in the Overlapping Generations model
Acemoglu, chapter
9
Blanchard “Debt,
Deficits, and Finite Horizons”, Journal
of Political Economy 1985
Blanchard and Fischer chapter 3
3.
Basic Endogenous Growth Models
Barro and Sala-I-Martin Chapter 4,5 Acemoglu chapter 11-13
Romer, “Endogenous Technological Change”, Journal of Political Economy, 1990
Jones, Charles I “R&D Based Models of Economic Growth”, Journal of Political Economy, 1995
4. Schumpeterian Models of Economic Growth
Acemoglu chapter 14
Aghion and Howitt, chapter 4
5. Directed Technical Change
Acemoglu chapter 15
Aghion and Howitt chapter 8
6. Growth and Financial Markets
Acemoglu, chapter 17,21
Ross Levine, Finance and Growth: Theory and Evidence, 2005
7. Globalization and Growth in the World Economy
Acemoglu, chapter 19
Aghion and Howitt chapter 6
Acemoglu and Ventura “The World Income Distribution”, Quarterly Journal of Economics (2002)
Ventura, A
Global View of Economic Growth, 2005 Handbook of Economic Growth
8. Models of Non-balanced Growth
Acemoglu, chapter 20
Acemoglu,
and V Guerrieri. 2008. “Capital Deepening and Nonbalanced Economic Growth." Journal of Political
Economy
Jing Zhang and Kei Mu Yi “Structural Change in
an Open Economy”, mimeo
Financial Market
Imperfections in Macroeconomics
1. Financial Constraints in DSGE settings
Kiyotaki and Moore Credit Cycles Journal of Political Economy 1997
Bernanke, Gertler
and Gilchrist The
Financial Accelerator in a Quantitative Business Cycle Framework , in J. Taylor and M. Woodford eds. Handbook of
Macroeconomics, Amsterdam: North Holland 2001, (also NBER WP 6455)
C. Carlstrom and T. S. Fuerst, , “Agency
Costs, Net Worth, and Business Fluctuations: A Computable General Equilibrium
Analysis,” American Economic Review, 1997
T. Cooley, R. Marimon and V. Quadrini, 2004 , “Aggregate
Consequences of Limited Contract Enforceability,” Journal of Political
Economy, Vol. 112, pp. 817-847.
Clementi
Gianluca and Hugo Hopenhayn
A Theory of Financing
Constraints and Firm Dynamics The Quarterly Journal of Economics 2006
2. Financial Structure and Macroeconomic Fluctuations
Quadrini Vincencio and and Urban Jermann, “Macroeconomic Effects of Financial Shocks”, mimeo 2009
Financial
Factors in Economic Fluctuations, Christiano,
Motto and Rostagno, 2009
Gertler Mark and Peter Karadi A Model of Unconventional Monetary Policy
Gertler and Kiyotaki 2009 Financial Intermediation and Credit Policy in Business Cycle Analysis