Advanced Macroeconomics SS 2019  


Advanced Macroeconomics – Lecture

Lecturer: Prof. Dr. Thomas Steger
Start: 01.04.2019
Date & Place 1: Mo, 1.15 - 2.45 pm | Seminarraum 17 (I 374)
Date & Place 2: Tu, 11.15 - 12.45 am | Seminarraum 8 (I 132)
Language: English

How to prepare?

Read the Macroeconomics Toolbox that accompanies the course Advanced Macroeconomics at Leipzig University. (You can skip the sections marked by a "*".) It provides a concise summary of the necessary concepts and techniques.

For a minimum preparation, work through the following sections
- Section 1 (Introduction)
- Section 2 (Technology & Utility)
- Section 3.1 (Method of Lagrangian Multipliers)
- Sections 4.1 & 4.2 (Dynamic Systems)

For a summary on dynamic optimization see this set of slides.

Advanced Macroeconomics I: Economic Growth

1. Consumption and Savings: Dynasties and OLG (pdf_bw, pdf_cd)

  • Barro, R. J. and X. Sala-i-Martin, Economic Growth, MIT Press, 2003, Chapter 2. (**)
  • Romer, D., Advanced Macroeconomics, McGraw-Hill, 2006, Chapter 2. (**)
  • Hejdra, B. and F. van der Ploeg, Foundations of Modern Macroeconomics, OUP, 2002, Chapter 17.1 & 17.2. (*)
Miscellaneous

Ramsey model (pdf)
Ramsey model: transitional dynamics (xls)

2. Investment under Capital Adjustment Costs (pdf_bw, pdf_cd)

  • Abel, Andrew and Olivier Blanchard, An Intertemporal Model of Saving and Investment, Econometrica, 1983, 51(3), 675-692. (**)
  • Blanchard O. J. and S. Fisher, Lectures on Macroeconomics, 1988, MIT Press, Chapter 2.4. (*)
Miscellaneous

Chow, G.-C., Dynamic Economics, OUP, 1997, Chapter 2.
Abel and Blanchard (1983) model (nbpdf)

3. Endogenous Growth (pdf_bw, pdf_cd)

  • Barro, R. J., Government Spending in a Simple Model of Endogenous Growth, Journal of Political Economy, 1990, 98(2), S103-S125.
  • Barro, R. J.and X. Sala-i-Martin, Economic Growth, MIT Press, 2003, Chapter 4. (**)
  • Romer, P.M., Endogenous technological change, Journal of Political Economy 1990, 98 (2), S71-S101. (**)
  • Jones, C.I., R&D-based models of economic growth, Journal of Political Economy, 1995, 103, 759-784.
Miscellaneous

Dixit-Stiglitz (1977) type model (setup, variety, exercise)
Acemoglu, D., Introduction to Economic Growth, PUP, 2009, Chapter 12.4.
Romer (1990) model: market solutionsocial planner's problem

Advanced Macroeconomics II: Economic Fluctuations

4. Real Business Cycles (pdf_bw, pdf_cd)

  • Romer, D., Advanced Macroeconomics, McGraw-Hill, 2006, Chapter 4. (*)
  • King, R. G., and S. T. Rebelo, Handbook of Macroeconomics, Vol 1 (2), Chapter 14: Resuscitating real business cycles, Elsevier, 1999. (pdf) (**)
  • Brunner, M. and H. Strulik, A Simple and Intuitive Method to Solve Small Rational Expectations Models, Journal of Economics, 2004, 82(1), 71-88.
  • Heer, B. und A. Maussner, Dynamic General Equilibrium Modelling, Springer, 2005, Chapter 1.
Miscellaneous

difference equations (xls)
propagation mechanism: simplistic RBC model (nb; pdf)

Digression: Unemployment and the Business Cycle (Search Theory) (pdf)

  • Romer, D., Advanced Macroeconomics, McGraw-Hill, 2006, Chapter 9 (2010, Chapter 10). (*)
  • Andolfatto, D., Business cycles and labor-market search, The American Economic Review, 1996, 86(1), 112-132.
  • Merz, M., Search in the labor market and the real business cycle, Journal of Monetary Economics, 1995, 36(2), 269-300. (**)
  • Pissarides, C.A., Equilibrium Unemployment Theory, The MIT Press, 2000, Chapter 1-3.

5. Price Rigidities: New Keynesians (pdf_bw, pdf_cd)

  • Galí, J., Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework, PUP, 2008, Chapters 2 & 3. (*)
  • Walsh, C. E., Monetary Theory and Policy, Sections 5.3.3 (Calvo's Model) & 5.4, MIT Press, 2003. (**)
  • Hejdra, B. and F. van der Ploeg, Foundations of Modern Macroeconomics, OUP, 2002, Chapter 13.
Miscellaneous

Chugh, S. K., A Short Course in Representative-Agent Macroeconomics, MIT 2012,  Chapter 22.
New Keynesian Phillips Curve: Derivation and recursive framework (pdf)

6. Budget Deficits and Fiscal Policy (pdf_bw, pdf_cd)

  • Romer, D., Advanced Macroeconomics, McGraw-Hill, 2006, Chapter 10. (**)
  • Hejdra, B. and F. van der Ploeg, Foundations of Modern Macroeconomics,  OUP, 2002, Chapter 12. (**)
Miscellaneous

Barro, R. J., Stimulus Spending Keeps Failing, The Wall Street Journal, 10.05.2012. (pdf)
Uhlig, H., Some Fiscal Calculus, American Economic Review, 2010, 100(2), 30-34. (pdf)

(**): very important
(*): important
no star(s): complementary

Preliminaries

Basic Neoclassical Model (pdf_bw, pdf_cd)
  • Solow, R. M. (1956): "A Contribution to the Theory of Economic Growth." Quarterly Journal of Economics 70, 65-94.
  • Barro, R.J.and X.Sala-i-Martin, Economic Growth, Chapter 1, MIT Press, 2003.
Miscellaneous

Transitional dynamics (k-shock, shock in saving rate)

The Convergence Debate (pdf_bw, pdf_cd)
  • Durlauf, S. N., Johnson, P. A., and Temple, J. R. W., Growth econometrics, in: P. Aghion and S. N. Durlauf (eds.) Handbook of Economic Growth, Vol. 1A, North-Holland, 2005, 555-677.
  • Mankiw, N. G., D. Romer, and D. N. Weil, A Contribution to the Empirics of Economic Growth, Quarterly Journal of Economics, 1992, 107(2), 407-437. (**)

letzte Änderung: 24.06.2019 

     

The lecture Advanced Macroeconomics on 18 June 2019 will be postponed to 3:00 p.m. on the same day in SR 8.