Macroeconomics I
(Scuola di
Dottorato "V. Pareto" - Ph.D.
Economics - 2011 - Fabio C. Bagliano)
The course present
basic dynamic macroeconomic models in three specific fields of
macroeconomics:
1. Dynamic consumption theory
∙ Permanent income theory with rational
expectations
∙ Empirical issues and puzzles
∙ The role of uncertainty:
precautionary savings
∙ Intertemporal consumption and
portfolio allocation
Lecture notes on dynamic consumption theory - 
Answers to
problem set (first part) -
Answers to
problem set (second part) -
General references:
Blanchard O.J. and S. Fischer (1989) Lectures on Macroeconomics, 6.2 and
10.1
Romer (2006) Advanced
Macroeconomics, third edition, ch. 7
Bagliano F.C.-Bertola G. (2007) Models for dynamic macroeconomics,
ch. 1
Specific references:
Deaton A. (1992) Understanding
consumption, especially ch. 3, 4
Attanasio O. (1999) "Consumption demand", in Handbook of Macroeconomics, vol.
1B, ch. 11
Campbell J. (1999) "Asset prices, consumption, and
the business cycle", in Handbook of
Macroeconomics, vol. 1C, ch. 19
Carroll C. (2001) "A theory of the consumption
function, with and without liquidity constraints", Journal of Economic Perspectives - ("graduate students version" NBER
wp 8387 - )
Angeletos et al. (2001) "The hyperbolic consumption
model: calibration, simulation and empirical evaluation", Journal of Economic Perspectives -
Meghir C. (2004) "A retrospective on Friedman's
theory of permanent income", Economic
Journal -
2. Dynamic investment models
∙ Dynamic optimization in continuous
time
∙ Adjustment costs and Tobin's
forward-looking "q"
∙ Investment dynamics, interest rates,
productivity and wages in partial equilibrium
Lecture notes on dynamic investment models -
Answers to
problem set (first part) -
Answers to
problem set (second part) -
General references:
Blanchard-Fischer (1989) Lectures on Macroeconomics, ch.2,
section 4 and ch. 6, section 3
Romer (2006) Advanced
Macroeconomics, third edition, ch 8
Bagliano-Bertola (2007) Models for dynamic macroeconomics, ch.
2
On mathematical methods:
Barro-Sala-i-Martin (1995) Economic Growth, Mathematical
Appendix
Specific
references:
Yoshikawa H. (1980) "On the `q' theory of
investment", American Economic Review,
70, 4, 739-743 -
Hayashi F. (1982) "Tobin's marginal q and average q:
a neoclassical interpretation", Econometrica,
50, 1, 213-224 -
Abel A. - Blanchard O.J. (1983) "An intertemporal
model of saving and investment", Econometrica,
51, 3, 675-692 -
Caballero R. (1999) "Aggregate Investment", Handbook of Macroeconomics, vol.
1B, ch 12 -
3. Flow dynamics in the labour
market
∙ Participation externalities in the
labour market
∙ Features of search models of the
labour market
∙ Job matching and unemployment dynamics
Lecture notes on search and matching models -
Answers to
problem set -
General references:
Romer (2006) Advanced
Macroeconomics, third edition, chapter 9, section 9.8
Bagliano-Bertola (2007) Models for dynamic macroeconomics,
chapter 5, sections 5.2-5.4
Specific
references:
Pissarides (2000) Equilibrium
Unemployment Theory, 2^{nd} ed., ch. 1-3
Petrongolo-Pissarides (2001) "Looking into the black
box: a survey of the matching function", Journal of Economic Literature -
Nickell S., Nunziata L., Ochel W., Quintini G.
(2002) "The Beveridge curve, unemployment and wages in the OECD from
the 1960s to the 1990s", Centre for Economic Performance, LSE -
Hornstein A., Krusell
P., G.L. Violante (2005) "Unemployment and Vacancy fluctuations in the
matching model: inspecting the mechanism", Federal Reserve Bank of
Richmond Economic Quarterly -
Shimer R. (2005) "The cyclical behavior of
equilibrium unemployment and vacancies", American Economic Review, March -
Hall R. (2005)
"Employment fluctuations with equilibrium wage stickiness", American Economic Review, March -