Eco551. Macroeconomics I. 2012
by G. Lukyanov (2nd part) and A. Riboni (1st part)
Grading: my part counts 50% of the final grade (10 out of 20 points). My grade will be based on the final exam (7 points) and one homework assignment (3 points).
Important references are indicated by a (*)
homework due OCT 15th (by email)
Previous exams : 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017 2018
Week 1
The Facts of Economic Growth; Neoclassical Growth Model.
References:
Acemoglu Daron, (2008) Introduction to Modern Economic Growth. Princeton U. Press. Ch 1 (Stlylized Facts) and Solow Model (Ch. 2). Note that in Acemoglu, most of the analysis is in continuous time. See however, p. 32 (Solow in discrete time) and p. 215
Aghion Philippe (2015) Les énigmes de la Croissance College de France, Leçon Inaugurale slides slides
Angeletos George-Marios, (2013), Lecture Notes, MIT Economics Department. Analysis is in discrete time, as in class. See ch. 3 (*)
Balboni et al, 2020 Why do people stay poor? slides, paper MIT mimeo.
Duflo and Benarjee 2020 Good Economics for Hard Times, chapter 5 (The End of Growth?) is excellent.
Gordon Robert (Rise and Fall of American Growth, 2017), slides, video
Jones Charles, (2015), The Facts of Economic Growth. Stanford University GSB working paper.
Saint-Paul Gilles. (2011) Notes on balanced growth paths
Week 2
Transitional Dynamics in the Neoclassical Growth Model.
References:
Azariadis, Intertemporal Macroeconomics, 1993. Phase diagram in discrete time (p. 94-97).
Krueger, Dirk, (2002) Macroeconomic Theory (notes). Analysis is in discrete time. See Ch. 3 (*)
Acemoglu Daron, (2008) Introduction to Modern Economic Growth. Princeton U. Press. Ch 8 (Neoclassical Growth Model) Phase diagrams are discussed on (p. 303). Notice that the phaseline "c-constant" is vertical when time is continuous.
Barro R. and X. Sala-i-Martin (2004). Economic Growth Ch. 2 (Ramsey Model). The analysis is in continuous time. Phase diagrams are extensively discussed in Section 2.6.
Week 3
Competitive Equilibrium.
References:
Krueger, Dirk, (2002) Macroeconomic Theory (notes). Very clear discussion of competitive equilibria in an exchange economy, see Ch. 2 (*). CE in the neoclassical growth model is discussed in chapter 3.3 (p. 55).
Stokey, Lucas and Prescott, 1989, (*) Recursive Methods in Economics Dynamics, ch. 2, Harvard University Press
Week 4
Inequality
References:
Atkinson, Piketty T, Saez E., 2011, Top incomes in the long run of history', Journal of economic literature
Barro R. and X. Sala-i-Martin (2004). Economic Growth (*). In class I did the discrete-time version of section 2.6.7
Bertola, Foellmi, Zweimuller, 2006 Income Distribution in Macroeconomic Models, Princeton University Press. If interested, you can have a look at section 3.1 and 3.1.2 (more general than what we did in class).
Deininger and Squire 1996 A New Data Set Measuring Income Inequality World Bank Economic Review
Jones, Charles 2015, Pareto and Piketty: The Macroeconomics of Top Income and Wealth Inequality, JEP
Piketty 2014 Capital in the 21st century (Harvard University Press, 2014)
Ray Debraj, 1998, Development Economics, Ch 7 (*) This chapter discusses the model with credit constraints in the slides (section 7.2.8).
Week 5
Structural Transformation; the Big Push. Government Spending
slides and slides on public policies
References on structural transformation:
Herrendorf, Rogerson and Valentinyi (2013) Growth and Structural Transformation NBER wpaper. In Class I went over Section 3.2 (*)
References on the "Big Push":
Ray, Debraj 2000, Notes for a course in development Economics, See Section 4.4 (*) for the MSV big-push model
Hoff, 2000, Beyond Rosenstein-Rodan The Modern Theory of Underdevelopment Traps, mimeo. Nice overview for those interested in these topics.
Murphy, Shleifer Vishny, 1989, The Industrialization and the big push, JPE.
Krugman, The Fall and Rise of Development Economics, worth reading: interesting and provocative.
References on Government Spending:
Barro, Robert, 1989, The Ricardian Approach to Budget Deficits, JEP
Elmendorf Douglas and Gregory Mankiw, 1998 Government Debt, Handbook of Macroeconomics
References on Continuous TIme Growth:
Keister Todd, (2005) Lectures notes on Economic Growth (provides nice intution about Hamiltonians)
math appendix See p. 612 in particular.
growth continuous time Note that these notes look at current value Hamiltonians