Eco551. Macroeconomics I. 2017
by P. Cahuc (2nd part) and A. Riboni (1st part)
Syllabus for the first part of the course.
Previous exams : 2009, 2010, 2011, 2012, 2013, 2014, 2015, and 2016
Lecture 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 Ch. 4 (Institutions)
Aghion Philippe (2015) Les énigmes de la Croissance College de France, Leçon Inaugurale slidesslides
Angeletos George-Marios, (2013), Lecture Notes, MIT Economics Department
Laibson et al. (2010) Intertemporal choice, mimeo, Harvard
Jones Charles, (2015), The Facts of Economic Growth. Stanford University GSB working paper.
Saint-Paul Gilles. (2011) Notes on balanced growth paths
Lecture 2
Transitional Dynamics in the Neoclassical Growth Model. Competitive Equilibrium.
slides home assignment (return 26/09) solution
References:
Cahuc Pierre and Andre Zylberberg. Appendix about Static and Dynamic Optimization. Mimeo
Exercise on the Neoclassical Growth Model (with solution) Exam 2009.
Keister Todd, (2005) Lectures notes on Economic Growth 2005 (provides nice intution about Hamiltonians)
Acemoglu Daron, (2008) Introduction to Modern Economic Growth. Princeton U. Press. Ch 8 (Neoclassical Growth Model)
Barro R. and X. Sala-i-Martin (2004). Economic Growth Ch. 2 (Ramsey Model)
Lecture 3
Arrow-Debreu Equilibrium. Public Policies in the Neoclassical Growth Model.
References:
Stokey, Lucas and Prescott, 1989, Recursive Methods in Economics Dynamics, ch. 2, Harvard University Press
Elmendorf Douglas and Gregory Mankiw, 1998 Government Debt, Handbook of Macroeconomics
Prescott, Edward 2004, "Why Do Americans Work So Much More than Europeans.", Federal Reserve Bank of Minneapolis, issue July, pp. 2-13
Lecture 4
Stages of Growth; Structural Transformation
References:
Aghion P. and P. Howitt (2008) The Economics of Growth. MIT Press, Ch. 10 (Stages of Growth)
Herrendorf, Rogerson and Valentinyi (2013) Growth and Structural Transformation NBER wpaper
Kongsamut, Piyabha, Sergio Rebelo, and Danyang Xie, (2001) "Beyond Balanced Growth" Review of Economic Studies, 68, 869-882
Matsuyama M. (1992), "Agricultural Productivity, Comparative Advantage, and Economic Growth," Journal of Economic Theory December, pages 317-334.
Ngai and Pissarides, (2007). ''Structural Change in a Multisector Model of Growth" American Economic Review 97(1), pp 429-443, March.
Lecture 5
Inequality
home assignement (return by Oct 24th) solution
References:
Acemoglu and Restrepo, 2017, The Race between Men and Machines, NBER wp Vox column1 and Vox column 2
Aghion P, Akcigit U, Bergeaud A, Blundell R, Hemous D. Innovation and Top Income Inequality. 2015. Vox column
Atkinson, Piketty T, Saez E., 2011, Top incomes in the long run of history', Journal of economic literature
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)
Ngai and Pissarides, (2007). ''Structural Change in a Multisector Model of Growth" American Economic Review 97(1), pp 429-443, March.
Lecture 6
The overlapping generations model
Slides Problem set Examples Solutions
References
Andrew B. Abel, N. Gregory Mankiw, Lawrence H. Summers, Richard J. Zeckhauser (1989), Assessing Dynamic Efficiency: Theory and Evidence, Review of Economic Studies, 56(1), pp. 1-19.
François Geerolf (2017), Reassessing Dynamic Efficiency
Jason Lu, Coen N Teulings, (2016), Secular stagnation, bubbles, fiscal policy, and the introduction of the pill, CEPR Policy Insight No 86
Philippe Weil (2008), Overlapping Generations: The First Jubilee, Journal of Economic Perspectives, 22(4), pp. 115–134.
Lecture 7
Public policies and bubbles in the overlapping-generations model
Slides Problem set Solutions
References
Barlevy, G. (2007), Economic theory and asset bubbles, Federal Reserve Bank of Chicago Economic Perspectives, Q3, pp. 44-16.
Brunnermeier, M.K, (2009). Bubbles, Ed. Lawrence Blume & Steven Durlauf.
Grossman, G.M and Yanagawa, N. (1993), Asset bubbles and endogenous growth, Journal of Monetary Economics, vol. 31, pp. 3-19.
Miao, J., (2014), Introduction to Economic Theory of Bubbles, Journal of Mathematical Economics, vol 53, pp. 130-136
Lecture 8
Technological Change. Product Variety Model
Slides Problem set Solutions
References
Daron Acemoglu and Joshua Linn, 2004, Market Size in Innovation: Theory and Evidence from the Pharmaceutical Industry, Quarterly Journal of Economics, 119(3), pp. 1049-1090.
Aghion P. and P. Howitt (2008) The Economics of Growth. MIT Press, Ch. 3
Jones, Charles I. (1995), R&D-based models of economic growth, Journal of Political Economy, 103, pp. 759-784.
Jones, Charles and John William, 1998, Measuring the Social Return to R&D, Quarterly Journal of Economics, Vol. 113, pp. 1119-1135
Greenstone, M., Hornbeck, R., Moretti, 2010, Identifying AgglomerationSpillovers: Evidence from Winners and Losers of Large Plant Openings, Journal of Political Economy, 118(3)
Mokyr, Joel (2009), Intellectual property rights, the industrial revolution, and the beginnings of modern economic growth, Amercian Economic Review, 99(2), pp. 349-355.
Popp, David, (2002), Induced Innovation and Energy Prices, American Economic Review, vol 92, pp.160-180.
Romer, Paul M. (1990), Endogenous technological change, Journal of Political Economy, 98(1), pp. S71-S102.
Lecture 9
Schumpeterian Growth
Slides Problem set Solutions
References
Aghion, P. and Howitt, P. (1992), A model of growth through creative destruction, Econometrica, 60, pp. 383-396.
Bassanini, A. and P. Marianna (2009), Looking Inside the Perpetual-Motion Machine: Job and Worker Flows in OECD Countries, OECD Social, Employment and Migration Working Papers, No. 95, OECD.
King, R.G. and Levine, R. (1993), Finance and growth: Schumpeter might be right, Quarterly Journal of Economics, 108, pp. 717-738.
Levine, R. and Zervos, S. (1998), Stock markets, banks, and economic growth, American Economic Review, 88, pp. 537-558.
Pascali, L. (2016), Banks and Development: Jewish Communities in the Italian renaissance and current economic performance, Review of Economics and Statistics, 98(1), pp. 140-158.