Download ECON 7040-001 Macroeconomic Theory II

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Econ 7040-001
MACROECONOMIC THEORY II
SPRING 199·1
TENTATIVE SYLLABUS
Prof. B~irbara J. Robles
Required Texts: Dynamic Macroeconomic Theory by T. Sargent (S)
Lectures on. Macroeconomics by Blanchard & Fischer (B&F)
Recommended Texts: Macroeconomic Theory by T. Sargent (2nd Ed.)
Exercises in Dynamic Macroeconomic Theory by R. Manuelli & T. Sargent
I. Introduction
Fischer, S. (1988) "Some Recent Developments in Macroeconomics, " The Economic Journal,
Vol. 98 , (June), pp. 294-339.
II. Consumption
S: Chapter 3 pp. 92-95
B&F: Section 6.2 pp.279-291
Flavin, M. (1985) "Excess Sensitivity of Consumption to Current Income:
Constraints or Myopia?" Canadian Journal of Economics, 18 February .
Liquidity
Campbell, J. and G. Mankiw (1989) "Consumption, Income, and Interest Rates :
Reinterpreting the Time Series Evidence," NBER Macroeconomics Annual.
Poterba, J. (1988) "Are Consumers Forward Looking? Evidence from Fiscal Experiments,"
American Economic Review, Papers and Proceedings, 78 ,2 May, pp. 413-418.
III . Investment
S: Exercises pp.47-54
B&F: pp.291-307
Handout: Sargent's Macroeconomic Theory Chapter VI
m. Investment (continued)
Soderstrcfm, H. (1976) "Production and Investment under Costs of Adjustment:
Zeitschrift fur Nationaliikonomie, Vol.36, pp. 369-388.
A Survey, "
Mortenson, D. (1973) "Generalized Costs of Adjustment and Dynamic Facto r Demand
Theory," Econometrica, Vol.4 1, pp.657-666.
Epstein, L. and M. Denny (1983) "The Multivariate Flexible Accelerator Model: Its
Empirical Restrictions and an Application to U.S. Manufacturing, "Econometrica ,
Vol.51 , No.3, pp.647-674.
Summers, L. (1981) "Taxation and corporate investment: A q-theory Approach," Brookings
Papers on Economic Activity, l , pp .67-140.
Hayashi, F. (1982) "Tobin's marginal q and average q: A Neoclassical Interpretatio n,"
Econometrica, vol.SO, pp.2 13-224.
Bernake, B. (1983) "The Determinants of Investment: Another Look," American Economic
Review (Papers and Proceedings), May , pp.71-75.
IV. Money
S: Chapter 4 pp. 137-153
B&F: Chapter 4; Section 9.6 pp.478-489; Section 10.1
Poterba, J. and J. Rotemberg (1987) "Money in the Utility Function: An Empirical
Impl ementation," in New Approaches to Monetary Economics, Barnett, W. and K.
Singleto n, (eds.), Proceedings of the Second International Symposium in Economic
Theory and Econometrics, (Cambridge Press: Cambridge, MA), pp.2 19-240.
Friedman, B. (1983) "The Roles of Money and Credit in Macroeconomic Analysis ," in
Macroeconomics, Prices and Quantities, Tobin , J. (ed.), (Brooki ngs Institution:
Washington, D.C.), pp. 161- 199.
Fischer, S. (1974) "Money in the Production Function," Economic Inquiry, (December), pp .
517-533.
Bl inder, A. & J. Stiglitz (1983) "Money, Credit Constraints and Economic Activity,"
American Economic Review (Papers and Proceedings), Vol. 73 , No . 2 (May), pp. 297302.
Scheinkman, J. & L. Weiss (1986) "Bo rrowing Constraints and Aggregate Econom ic
Activity," Econometrica , Vol. 54, No. 1, (January), pp . 23-45.
Stockman, A. (1989) "The Cash-in-Advance Constraint in International
F in ance Constraints and the Theory of Money by S. C. Tsiang.
Economics,"
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V. Labor
B&F: Chapter 9
Blanchard, 0. & L. Summers (1988) "Beyond the Natural Rate Hypothesis," American
Economic Review, Vol. 78, No. 2, (May), pp. 182-187.
Bils, M. (1985) "Real Wages over the Business Cycle: Evidence from Panel Data," Journal
of Political Economy, Vol. 93, (August), pp. 666-689.
Lindbeck, A. and D. Snower (1986) "Wage Setting, Unemployment, and Insider-Outsider
Relations," American Economic Review (Papers and Proceedings), Vol. 76, pp. 235239.
VI.
Uncertainty in Macro Models
B&F: Chapter 6
Handout:
Sargent's Macroeconomic Theory, Chapter XIV
VII. Business Cycles
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B&F: Chapter 7
Kydland, F. and E. Prescott (1982), "Time to Build and Aggregate Fluctuations,"
Econometrica, Vol.50, No.6, pp. 1345-1370.
Zarnowitz, V. (1985), "Recent Work on Business Cycles in Historical Perspective: A Review
of Theories and Evidence," Journal of Economic Literature, Vol. 23, No. 2, (June),
pp. 523-580.
Plosser, C. (1989) "Understanding Real Business Cycles,"Journal of Economic Perspectives,
Vol. 3, No.3, (Summer), pp. 51-77.
Mankiw, G. (1989) "Real Business Cycles: A New Keynesian Perspective," Journal of
Economic Perspectives, Vol. 3, No. 3, (Summer), pp. 79-90.
Blinder, A. and S. Fischer (1981), "Inventories, Rational Expectations and the Business
Cycle," Journal of Monetary Economics, (November), Vol. 8, No. 3, pp.277-304.
Long, J. and C. Plosser (1983) "Real Business Cycles," J ournal of Political Economy, Vol.
91, No. 1, (February), pp. 39-69 .