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TOPIC # |
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TOPICS |
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READINGS |
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1 |
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A Prelude to Growth Facts and Growth Models (2 lectures)
Topics: "Why growth theory?"; stylized facts on world growth and world income distribution; the Solow Model; steady state, golden rule, and transitional dynamics; productivity shocks and policy effects; conditional convergence; exogenous technological change; two sectors, AK, and the general convex growth model; nonconvexities and poverty traps. |
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Barro, R. J., and X. Sala-i-Martin. Economic Growth. Chaps. 1 and 12.
Romer, D. Advanced Macroeconomics. Chaps. 1 and 3-A.
Jones, C. "On the Evolution of the World Income Distribution."
Mankiw, N. G., D. Romer, and D. Weil. "A Contribution to the Empirics of Economic Growth."
Barro, R. Determinants of Economic Growth: A Cross-Country Empirical Study.
Hall, R., and C. Jones. "Why Do Some Countries Produce So Much More Output than Others?"
Solow, R. M. "A Contribution to the Theory of Economic Growth."
Solow, R. M. Growth Theory: An Exposition. |
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2 |
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The Neoclassical Growth Model (2 lectures)
Topics: Introducing DGE and refreshing dynamic programming, optimal control, and dynamic systems; the Neoclassical Growth Model (Ramsey-Cass-Koopmans-Brock-Mirman); the steady state, the modified golden rule, and the transitional dynamics; productivity shocks, taste shocks, and policy shocks. |
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Barro, R. J., and X. Sala-i-Martin. Economic Growth. Chaps. 2 and 3.
Blanchard, O., and S. Fischer. Lectures on Macroeconomics. Chap. 3.
Stokey, N. L., and R. E. Lucas, Jr. Recursive Methods in Economic Dynamics. Chap. 2.
Cass, D. "Optimum Growth in an Aggregative Model of Capital Accumulation."
Cass, D. "Optimum Growth in an Aggregative Model of Capital Accumulation: A Turnpike Theorem."
Lucas, R. E., Jr. "Why Doesn't Capital Flow from Rich to Poor Countries?"
Ramsey, F. P. "A Mathematical Theory of Saving."
Romer, D. Advanced Macroeconomics. Part A of chap. 2.
Skiba, A. K. "Optimal Growth with a Convex-Concave Production Function." |
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3 |
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Applications I: Open Economies, Overlapping Generations, Money (2 lectures)
Topics: Open economies; adjustment costs and Tobin's q; finite horizons in the neoclassical growth model (the Blanchard model); OLG economies (the Diamond model); public debt, bubbles, social security; life-cycle consumption and savings; altruism and bequests; Ricardian equivalence; money (the Sidrausky model). |
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Barro, R. J., and X. Sala-i-Martin. Economic Growth. Chap. 3 and appendix to chapter 3.
Blanchard, O., and S. Fischer. Lectures on Macroeconomics. Chap. 3 and sections 5.1-5.2.
Barro, R. J. "Are Government Bonds Net Wealth?"
Blanchard, O. "Debt, Deficits and Finite Horizons."
Diamond, P. "National Debt in a Neoclassical Growth Model."
Abel, A., and O. Blanchard. "An Intertemporal Equilibrium Model of Saving and Investment."
Abel, A. B., N. G. Mankiw, L. H. Summers, and R. J. Zeckhauser. "Assessing Dynamic Inefficiency: Theory and Evidence."
Caballero, R. J., and M. L. Hammour. "Speculative Growth."
Feldstein, M. "The Optimal Level of Social Security Benefits."
Modigliani, F. "Life Cycle, Individual Thrift, and the Wealth of Nations."
Romer, D. Advanced Macroeconomics. Chap. 2, part B.
Samuelson, P. A. "An Exact Consumption Loan Model of Interest with and without the Social Contrivance of Money."
Sidrausky, M. "Rational Choice and Patterns of Growth in a Monetary Economy."
Tirole, J. "Asset Bubbles and Overlapping Generations." |
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4 |
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Applications II: Fluctuations, Asset Pricing, Public Finance, Behavioral (2 lectures)
Topics: Introduction to SDGE; aggregate uncertainty and RBC; Arrow-Debreu markets; the Consumption-CAPM; tax smoothing, debt management, and capital taxation; hyperbolic preferences. |
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Blanchard, O., and S. Fischer. Lectures on Macroeconomics. Sections 10.1 and 11.3.
Romer, D. Advanced Macroeconomics. Section 7.5.
Stokey, N. L., and R. E. Lucas, Jr. Recursive Methods in Economic Dynamics. Chap. 2.
Lucas, R. E, Jr. "Asset Prices in an Exchange Economy."
Barro, R. "Ramsey Meets Laibson in the Neoclassical Growth Model."
Angeletos, G. M. "Fiscal Policy with Non-Contingent Debt and the Optimal Maturity Structure."
Barro, R. J. "On the Determination of the Public Debt."
Barro, R. J. "The Neoclassical Approach to Fiscal Policy."
Baxter, M., and R. King. "Fiscal Policy in General Equilibrium."
Blanchard, O., and R. Perotti. "An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes Output."
Brock, W., and L. J. Mirman. "Optimal Economic Growth and Uncertainty: The Discounted Case."
Chamley, C. "Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives."
Chari, V. V., and P. Kehoe. "Optimal Fiscal and Monetary Policy."
King, R., and S. Rebelo. "Resuscitating Real Business Cycles."
Kydland, F., and E. C. Prescott. "Time to Build and Aggregate Fluctuations."
Laibson, D. "Golden Eggs and Hyperbolic Discounting."
Lucas, R. E, Jr., and N. L. Stokey. "Optimal Fiscal and Monetary Policy in an Economy without Capital."
Romer, D. Advanced Macroeconomics. Chap. 7.
Summers, L. "Capital Taxation and Accumulation in a Life Cycle Growth Model." |
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5 |
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Endogenous Growth I: AK, Spillovers, Human Capital (2 lectures)
Topics: The general AK model; endogenizing A; externalities and spillovers (Romer); public goods (Barro); human capital and learning-by-doing (Lucas); macroeconomic complementarities; policy effects (Rebelo). |
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Barro, R. J., and X. Sala-i-Martin. Economic Growth. Chaps. 4 and 5.
Romer, P. M. "Increasing Returns and Long-Run Growth."
Lucas, R. E., Jr. "On the Mechanics of Economic Development."
Barro, R. J. "Government Spending in a Simple Model of Endogenous Growth."
Aghion, P., and P. Howitt. Endogenous Growth Theory. Chap. 10.
Caballero, R., and A. Jaffe. "How High Are the Giants' Shoulders?"
Jones, L., and R. Manuelli. "A Convex Model of Equilibrium Growth."
Lucas, R. E., Jr. "Making a Miracle."
Rebelo, S. "Long-Run Policy Analysis and Growth."
Rivera-Batiz, L., and P. Romer. "Economic Integration and Endogenous Growth."
Young, A. "Invention and Bounded Learning by Doing."
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6 |
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Endogenous Growth II: R&D, Innovation, Technological Change (2 lectures)
Topics: Expanding varieties (Romer); Schumpeterian growth and quality ladders; directed technological change; international trade and growth; technology diffusion. |
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Barro, R. J., and X. Sala-i-Martin. Economic Growth. Chaps. 6 and 7.
Romer, P. M. "Endogenous Technological Change."
Aghion, P., and P. Howitt. "A Model of Growth Through Creative Destruction."
Acemoglu, D. "Directed Technological Change."
Acemoglu, D., and J. Ventura. "The World Income Distribution."
Aghion, P., and P. Howitt. Endogenous Growth Theory., Chaps. 1-3.
Barro, R., and X. Sala-i-Martin. "Public Finance in Models of Economic Growth."
Barro, R., and X. Sala-i-Martin. "Technological Diffusion, Convergence, and Growth."
Brezis, E., P. R. Krugman, and D. Tsiddon. "Leapfrogging in International Competition: A Theory of Cycles in National Technological Leadership."
Grossman, G. M. and E. Helpman. "Quality Ladders in the Theory of Economic Growth."
Jones, C. "R&D-Based Models of Economic Growth."
Krugman, P. R. "A Model of Innovation, Technology Transfer, and the World Distribution of Income."
Parente, S. L., and E. C. Prescott. "Barriers to Technology Adoption and Development."
Ventura, J. "Growth and Interdependence." |
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7 |
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Beyond K, H, and R&D: Markets, Institutions, Wealth Distribution (2 lectures)
Topics: Financial markets and growth; precautionary savings and risk taking; incomplete markets and wealth distribution; institutions and growth; social norms. |
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Acemoglu, D., and F. Zilibotti. "Was Prometheus Unbound by Chance? Risk, Diversification, and Growth."
Galor, O., and J. Zeira. "Income Distribution and Macroeconomics."
Cole, H., G. Mailath, and A. Postlewaite. "Social Norms, Savings Behavior and Growth."
Acemoglu, D., S. Johnson, and J. Robinson. "The Colonial Origins of Comparative Development: An Empirical Investigation."
Angeletos, G. M. "Entrepreneurial and Capital Income Risk in the Neoclassical Growth Model."
Aiyagari, S. R. "Uninsured Idiosyncratic Risk and Aggregate Saving."
Banarjee, A., and A. Newman. "Occupational Choice in the Process of Development."
Bernanke, B., and M. Gertler. "Agency Costs, Collateral, and Business Fluctuations."
Caballero, R. "Consumption Puzzles and Precautionary Saving."
Caselli, F., and J. Ventura. "A Representative Consumer Theory of Distribution."
Greenwood, J., and B. Jovanovic. "Financial Development, Growth, and the Distribution of
Income."
Obstfeld, M. "Risk-Taking, Global Diversification and Growth."
Weil, P. "Precautionary Savings and the Permanent Income Hypothesis." |
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