Topics in Macroeconomics-Econ 608

SYLLABUS 608

This course is a reading group plus homework: everyone presents. From the student's perspective, each homework is a startup that may grow or fail.

Ideally, a homework grows, morphs and leads to an original job market paper or a joint venture with faculty.

Homework builds strength in all aspects relevant to the numerical approximation of equilibrium in a class of dynamic economies.

A little bit of literature is covered in the process. The class of equilibria considered focuses on (1) steady states and (2) deterministic transitions.

These tools are ideal to analyze a large spectrum of economic, social and even natural phenomena.

Grading: Students are required to (1) give in-class presentations of papers and homework, (2) publish online one or more original blogposts or complete a final in-class written exam.

Lecture: Lecture F 2:00 pm - 4:30 pm ICC 206A

I reserve the right to make changes!

Background:

Heathcote, Storesletten and Violante (2009) Quantitative Macroeconomics with Heterogeneous Households

Guvenen (2011) Macroeconomics with Heterogeneity a Practical Guide

Inequality and the Life Cycle:

Week 1 (Jan 13):

Badel and Huggett (2014) Interpreting Life-Cycle Inequality Patterns as an Efficient Allocation: Mission Impossible?

Kaplan (2012) Inequality and the Life Cycle

Week 2-3 (Jan 27- Feb 3): Inequality, Segregation and Intergenerational Transmission:

Sethi and Somanathan (2004) "Inequality and Segregation"

Badel (2013) "An American Inequality Trap"

Chetty et al. (2014) "Where is the Land of Opportunity? The Geography of Intergenerational Mobility in the United States"

Chetty, Hendren and Katz (2016) "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Project"

Additional Reading: Epple and Platt (1998) "Equilibrium and Local Redistribution in an Urban Economy when Households..."

Week 4 (Feb 17): Human Capital across Countries

Piketty and Saez (2003) "Income Inequality in the US 1913-1998"

Lagakos, Moll, Porzio, Qian, Schoellman "Life-Cycle Wage Growth Across Countries"

Badel, Daly, Huggett and Nybom (2016) Top Earners: Comparing the US, Canada, Denmark and Sweden

Huggett, Ventura and Yaron (2006) "Human Capital and Earnings Distribution Dynamics"

Manuelli and Sheshadri (2014) "Human Capital and the Wealth of Nations"

Week 5-6 (Feb 24-3): Labor Supply Elasticity

Domeij and Floden (2005) "The Labor Supply Elasticity and Borrowing Constraints: Why estimates are Biased"

Wallenius (2011) "Human Capital Accumulation and the Intertemporal Elasticity of Substitution"

Week 6-7 (Mar 10-17): Social Security Reform

Chetty and Finkelstein, "Social Insurance: Connecting Theory to Data"

Imrohoroglu and Joines, "A Life Cycle Analysis of Social Security"

Blandin, "Reforming the Social Security Earnings Cap: The Role of Endogenous Human Capital"

Imrohoroglu, Imrohoroglu and Joines, "Time inconsistent Preferences and Social Security"

Week 8-9 (Mar 24- Apr 31): Intergenerational Transmission

Restuccia and Urrutia, ``Intergenerational Persistence of Earnings: The Role of Early and College Education''

Sheshadri and Lee,

Abott, Gallipoli, Meghir and Violante ``Education Policy and Intergenerational Transfers in Equilibrium''

Spring Break

Week 10-11: Long Run Growth (Apr 7-14)

Galor and Weil (2000),Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond

Hansen and Prescott (2002), Malthus to Solow

Lagerloff (2006), "The Galor-Weil Model Revisited: A Quantitative Exercise"

Roys and Sheshadri (2015), "On the Origin and Causes of Economic Growth"

Week 12-13 (Apr 21-28) : Structural Transformation

Herrendorf et al. "Growth and Structural Transformation"

Kaboski, Buera and Rogerson, "Skill Biased Structural Change"