Graduate macroeconomics 2 - Syllabus 2012

ecuadorianaceΔιαχείριση

28 Οκτ 2013 (πριν από 3 χρόνια και 7 μήνες)

67 εμφανίσεις

Graduate macroeconomics 2
-

Syllabus 2012


Topic 1
-

Covered
in

lecture 1, problem sets 1 & 2

Business cycle facts, basic model, equivalence of centralized and decentralized economy, solution
methods: special cases, log
-
linearizing, stochastic dynamic
programming

Readings:

Stock and Watson (1999):
Business Cycle Fluctutations in US Macroeconomics Time Series
, in Taylor
and Woodford, Handbook of Macroeconomics, Vol 1A, Ch1, Section 3.

Campbell (1994):
Inspecting the Mechanism: An Analytical Approach to t
he Stochastic Growth
Model
, Journal of Monetary Economics, 33, 463
-
506

*Ljungqvist and Sargent (2000):
Recursive Macroeconomic Theory
, MIT Press, Chapter 2 and 3

*Stokey, Lucas and Prescott (1989):
Recursive Methods in Economic Dynamics
, Harvard University

Press, parts of Chapter 5 and 10

*Blanchard and Fisher (1989):
Lectures on Macroeconomics
, MIT Press, Chapter 2

Topic 2

-

Covered
in

lectures 2 & 3, problem sets 3, 4 & 5

The labor
-
leisure choice

Readings:

Romer (2001):
Advanced Macroeconomics
, second ed
ition, Chapter 4.

King and Rebelo (1999):
Resuscitating Real Business Cycles
, in Taylor and Woodford, Handbook of
Macroeconomics, Vol 1B, Ch14

*Uhlig (1999):
A Toolkit for Analyzing Nonlinear Stochastic Models Easily,

in Marimon

and Scott,
Computational Methods for the Study of Dynamic Economies, Oxford

*Prescott (1986):
Theory Ahead of Business Cycle Measurement
, Quarterly Review, Federal Reserve
Bank of Minneapolis, Fall 1986, 9
-
22

*Basu and Fernald (2000):

Why is Productivity
Procyclical? Why Do We Care?
, NBER W7940,
October 2000

Topic 3

-

Covered in

lecture 4

Introducing money, cash in advance model, money in utility model

Readings:

Walsh (2010):
Monetary Policy and Theory,

Chapter 2 and 3

Blanchard and Fisher (1989):
Lectures

on Macroeconomics
, MIT Press, section 4.3
-
4.7 and 10.2

Topic 4

-

Covered in lectures 5 & 6, problem sets 6 & 7

New Keynesian business cycles, markups, imperfect competition, sunspot equilibria, sticky prices,
Calvo pricing

Readings:

Rotemberg and Woodford

(1995):
Dynamic General Equilibrium Modesl with Imperfectly
Competitive Product Markets,

in Cooley, Fronties of Business Cycle research, Chapter 9

Dotsey and King (2006):
Pricing, Production, and Persistence
, Journal of the European Economic
Association,
MIT Press, vol. 4(5), pages 893
-
928, 09

Christiano, Eichenbaum and Evans (2005):
Nominal Rigidities and the Dynamic Effects of a Shock to
Monetary Policy
, Journal of Political Economy, vol 113, no 1

Clarida, Gali, and Gertler (1999):
The Science of
Monetary Policy: A New Keynesian Perspective
,
Journal of Economic Literature, vol. 37, pp. 1661
-
1707.

*Chari, Kehoe, and McGrattan (2000),
Sticky Price Models of the Business Cycle: Can the Contract
Multiplier Solve the Persistence Problem
, Econometrica,
vol. 68, pp. 1151
-
79

*Calvo (1983):
Staggered Prices in a Utility
-
Maximizing Framework
, Journal of Monetary
Economics, vol. 12, pp. 383
-
98.

Topic 5

-

Covered in lecture 7, problem set 8

Consumption, aggregation, idiosyncratic shocks, autarky, complete mark
ets, permanent income
hypothesis, certainty equivalence, precautionary savings, prudence, borrowing constraints, natural debt
limit

Readings:

Mace (1991):
Full Insurance in the Presence of Aggregate Uncertainty
, Journal of Political Economy

Cochrane (1991)
:
A Simple Test of Consumption Insurance
, Journal of Political Economy

Hall (1978):
Stochastic Implications of the Life Cycle
-
Permanent Income Hypothesis: Theory and
Evidence
, Journal of Political Economy

Deaton (1991):
Saving and Liquidity Constraints
, Ec
onometrica

Carroll (1997):
Buffer
-
Stock Saving and the Life Cycle/Permanent Income Hypothesis
,
Quarterly
Journal of Economics

*Blundell and Preston (1998):
Consumption Inequality and Income Uncertainty
, Quarterly Journal of
Economics



Topic 6

-

Covered in

lecture 8, problem set 9

Equilibrium with agents facing heterogeneous labor income risk, risk
-
free asset and borrowing
constraints, Consumption, invariant distribution of wealth, magnitude of precautionary savings, wealth
inequality, efficiency and constr
ained efficiency, aggregate uncertainty

Readings:

Aiyigari (1994):
Uninsured Idiosyncratic Risk and Aggregate Saving
, Quarterly Journal of Economics

Huggett (1993): The Risk
-
free Rate in Heterogeneous
-
agent Incomplete
-
insurance Economies, Journal
of Econo
mic Dynamics and Control

Topic 7
-

Covered in lecture 9

Dynamic taxation, Ramsey taxation, zero capital income tax, Mirrlees taxation, informational
problems, new dynamic public finance, inverse Euler equation

Readings:

Chamley (1986):
Optimal Taxation
of
Capital Income in General Equilibrium with Infinite Lives,
Econometrica


Atkeson, Chari, and Kehoe (1999):
Taxing Capital Income: A Bad Idea
, Federal reserve Bank of
Minneapolis Quarterly Review

Conesa, Kitao, and Krueger (2009):
Taxing Capital? Not a Bad
Idea after All!
, American Economic
Review

Golosov, Tsyvinski, and Werning (2006):
New Dynamic Public Finance: A User's Guide