|
Instructor |
Professor
Tasso Adamopoulos |
|
Office |
GE
202, Max Gluskin House, 150 St. George
Street |
|
Contact |
Email:
adamopou@chass.utoronto.ca, Phone: (416)
978-8695 |
|
Lecture Hours Tutorials |
Every Tuesday, 9:00 - 11:00 a.m., at SS2111. Every second Thursday (starting Jan. 12), 9:00 -
11:00 a.m., at WW126. In particular we will have lectures on: Jan.10,
Jan.12, Jan.17, Jan.24, Jan.26, Jan.31, Feb.7, Feb.9, Feb.14, Feb.28, March 1
(midterm), March 6, March 13, March 15, March 20, March 27, March 29, April
3. The rest of the Thursday slots (9:00 - 11:00
a.m., at WW126) will be used for 6 tutorials. The tutorial dates are: Jan.19,
Feb.2, Feb.16, March 8, March 22, April 5. |
|
Office Hours |
Tuesday, 11:00 a.m. - 1:00 p.m., or by
appointment. |
|
Course Web Page |
http://www.economics.utoronto.ca/adamopou/eco2061.htm The website will be used extensively for posting announcements,
lecture notes, problem sets, and solutions. Please consult it on a regular
basis. |
|
Teaching Assistant |
The TA is Leandro Freyjeler. He will hold 2
hours of office hours per week, TBA. |
|
Course Description |
The objective of this course is to
introduce you to the study of macroeconomics at the advanced level. This
means that we will use rigorous models and employ (dynamic) optimization
techniques to present and analyze macroeconomic theories. A common theme
across the models we will study is that economic aggregates are the equilibrium
result of the optimizing decisions made by rational agents at the individual
level. We will employ this rigorous approach, not as an end in itself, but as
a means to obtain disciplined insights into the important questions that
trouble macroeconomists. The topics we will cover include economic growth,
business fluctuations, consumption and investment, employment and
unemployment, and fiscal and monetary policy. |
|
Textbook |
The required textbook is Advanced
Macroeconomics (4th Edition), by David Romer, McGraw Hill, 2012.
|
|
Other References |
·
Obstfeld
M. and K. Rogoff (1996), Foundations of International Macroeconomics,
MIT Press. ·
Cooley,
T. (1995), Frontiers of Business Cycle Research, Princeton University
Press. ·
Pissarides,
C. (2000), Equilibrium Unemployment Theory, MIT Press. |
Evaluation |
Assignments (worth 15%): 3 assignments on dates TBA Midterm Test (worth 35%): Thursday, March 1, 2012 Final Exam (worth 50%): April
exam period The problem sets must be handed in on the pre-specified dates. No
late submissions will be accepted. If a problem set is not handed in on time,
for a justified and documented reason, the weight will shift to the final
exam. The midterm test will be held during class time. There will be no
make-up exam for the midterm test. If you provide appropriate and timely
documentation for missing the midterm, the weight will be transferred to the
final exam. The final exam will be held at a date and location to be set by the University. The final exam will include all the material covered in the course. |
|
|
|
Preliminary List of Topics and Readings List
Introduction
Economic Growth and Development
Stylized Facts
Pritchett, Lant
(1997), Divergence, Big Time, Journal
of Economic Perspectives, 11(3), pp.3-17.
McGrattan, Ellen
and James Schmitz Jr. (1999), Explaining
Cross-Country Income Differences, Handbook of Macroeconomics, Vol. 1A,
North-Holland. Section 2, pp.6-10.
Jones, Charles
(2002), Introduction to Economic Growth, (2002), 2nd Edition, W.W.
Norton and Company Inc. - Chapter 1.
Romer, Ch.1,
pp.6-10.
Growth Theory
Romer, Ch.1, pp.10-37.
Mankiw, Gregory, David Romer, and David
Weil (1992) "A Contribution to the Empirics of Economic
Growth," Quarterly Journal of Economics, vol. 107, pp. 407-437.
· Ramsey, Cass, Koopmans Model
Romer, Ch.2,
pp.49-77.
· Overlapping Generations Model
Romer, Ch.2,
pp.77-93.
·
AK Model
Rebelo, Sergio
(1991), Long Run Policy Analysis and Long Run Growth,
Journal of Political Economy, 99, pp.500-521.
Obstfeld and
Rogoff, Ch.7, pp.473-478.
Romer, Ch.3,
pp. 121-123.
Cross - Country
Income Differences
Romer, Ch.4.
Caselli, Francesco (2005), Accounting
for Cross-Country Income Differences, Handbook of Economic Growth,
Ch.9, Philippe Aghion and Steven Durlauf (eds.), Elsevier.
Hall, Robert E.
and Charles I. Jones (1999), Why Do Some Countries Produce so
much more Output per Worker than Others?, Quarterly Journal of
Economics, Vol.114, No.1, pp.83-116.
Restuccia, Diego,
and Carlos Urrutia (2001), Relative
Prices and Investment Rates, Journal
of Monetary Economics, Vol.47 (1), pp.93-121.
Klenow, Peter J.
and Andres Rodriquez-Clare (1997), The
Neoclassical Revival in Growth Economics: Has it Gone Too Far?, in Ben S.
Bernanke and Julio J. Rotemberg, eds., NBER Macroeconomics Annual 1997,
Cambridge, MA: MIT Press
Easterly, William, and Ross Levine (2001), "It's Not Factor Accumulation: Stylized Facts and
Growth Models" World Bank Economic Review, 15(2).
Acemoglu, Daron,
Simon Johnson and James A. Robinson (2005), Institutions as the Fundamental Cause of Long-Run Growth,
Handbook of Economic Growth (Philippe Aghion and Stephen Durlauf, eds., North
Holland). Introduction.
Real Business
Cycles Theory
Romer, Ch.5.
Cooley, Thomas,
and Edward Prescott (1995), Economic Growth and Business Cycles, Ch.1, in Frontiers
of Business Cycle Research, by T.Cooley (ed), Princeton University Press.
Prescott, Edward (1986), Theory Ahead
of Business Cycle Measurement, Federal Reserve Bank of Minneapolis
Quarterly Review, Fall, 9-22
King, Robert,
and Sergio Rebelo (2000), Resuscitating Real
Business Cycles, in Handbook of Macroeconomics, by J.Taylor and
M.Woodford, North-Holland.
Keynsian
Business Cycle Theory
·
Traditional
Keynsian Theories
Romer, Ch.6,
Part A.
·
Micro
Foundations of Incomplete Nominal Adjustments
Romer, Ch.6,
Part B.
Bils, Mark, and Peter Klenow (2004), "Some Evidence on the Importance of Sticky Prices" ,
Journal of Political Economy 112, pp. 947-985
Financial
Factors and Business Cycles
Christiano,
Lawrence, Roberto Motto, and Massimo Rostagno (2010), Financial Factors
and Economic Fluctuations, European
Central Bank Working Paper Series No. 1192.
Romer, Ch.10.
Pissarides, C.
(2000), Equilibrium Unemployment Theory, Ch.1.
Rogerson,
Richard (2001), The
Employment of Nations A Primer, Economic Review, Federal Reserve
Bank of Cleveland.
Ljungqvist,
Lars, and Thomas J. Sargent (1998), The European Unemployment
Dilemma,'' Journal of Political
Economy, 106, pp.514-550.
Prescott,
Edward C. (2004), Why
Do Americans Work So Much More Than Europeans?'' Federal Reserve Bank of Minneapolis
Quarterly Review, Vol.28, No.1, pp.2-13.
Romer, Ch.11.
Kydland, Finn,
and Edward Prescott (1977), Rules Rather Than
Discretion: The Inconsistency of Optimal Plans, Journal of Political
Economy, 85(3), pp.473-492.
Romer, Ch.12.
Eggertsson,
Gauti (2009), What
Fiscal Policy is Effective at Zero Interest Rates? New York Fed Staff
Report No. 402.
Sargent, Thomas
J. (2012), United
States Then, Europe Now, Nobel Prize Lecture.
Correia, Isabel, Emmanuel
Farhi, Juan Pablo Nicolini, and Pedro Teles (2011), Unconventional
Fiscal Policy at the Zero Bound, Manuscript, Harvard University.
Romer, Ch.8.
Romer, Ch.9.
Lucas, Robert (1978), Asset Prices in Exchange
Economy, Econometrica 46, pp.
1426-1445.