Advanced Macroeconomics University of Pavia A.A. 2010-2011 Dr.Silvia Dal Bianco silvia.dalbianco@eco.unipv.it Reading List Consumption Main references: Bagliano Fabio Cesare and Bertola Giuseppe (2004): Models for Dynamic Macroeconomics, Oxford University Press. Chapter 1: Dynamic Consumption Theory David Romer (2006): Advanced Macroeconomics, 3rd Edition, McGraw-Hill, New York. Chapter 7: Consumption, from pag.349-352. Further Readings Orazio P. Attanasio and Guglielmo Weber (2009): Consumption and Saving: Models of Intertemporal Allocation and Their Implications for Public Policy. NBER Working Paper No. 15756. Growth Theory 1) Growth with exogenous saving rates: The Solow-Swan Model Main References: Robert J.Barro and Xavier Sala-i-Martin (1995, 2003): Economic Growth, The MIT Press. Chapter 1 : Growth Models with exogenous saving rates (Pag. 14-38, 1995 Edition) N. Gregory Mankiw, David Romer and David N. Weil: A Contribution to the Empirics of Economic Growth, The Quarterly Journal of Economics, Vol. 107, No. 2 (May, 1992), pp. 407-437 2) Growth with consumer optimization: The Ramsey Model Main Reference: Olivier J.Blanchard and Stanley Fisher (1989): Lectures on Macroeconomics. The MIT Press. Chapter 2: Consumption and Investment, Basic Infinite Horizon Models. 1 3) Endogenous Growth: Main references: Robert J.Barro and Xavier Sala-i-Martin (1995, 2003): Economic Growth, The MIT Press. Chapter 1 : Growth Models with exogenous saving rates (Pag. 39-41, 1995 Edition) Bagliano Fabio Cesare and Bertola Giuseppe (2004): Models for Dynamic Macroeconomics, Oxford University Press. Chapter 4: Growth in Dynamic General Equilibrium, especially Pag.151-163. Further readings: Endogenous growth mechanisms Sergio Rebelo (1991): Long-Run Policy Analysis and Long-Run Growth, The Journal of Political Economy, Vol. 99, No. 3, p.500-521. (Constant returns to capital: AK model) Robert J. Barro (1990): Government Spending in a Simple Model of Endogeneous Growth, The Journal of Political Economy Vol. 98, No. 5, Part 2: The Problem of Development: A Conference of the Institute for the Study of Free Enterprise Systems (Oct., 1990), pp. S103-S125 (Public capital) Paul M. Romer (1986): Increasing Returns and Long-Run Growth, The Journal of Political Economy, Vol. 94, No. 5, p.1002-1037. (Learning by doing) Robert E. Lucas Jr. (1988) : On the Mechanics of Economic Development, The Journal of Monetary Economics, Vol.22, No.1 (July), p.3-42. (Human capital accumulation) Endogenous technological change Robert J.Barro and Xavier Sala-i-Martin (1995): Economic Growth, The MIT Press. Chapter 6 : Models with expanding variety of products Robert J.Barro and Xavier Sala-i-Martin (1995): Economic Growth, The MIT Press. Chapter 7 : Models with improvements in the quality of products Steve Dowrick & Mark Rogers (2002): Classical and technological convergence: beyond the SolowSwan growth model, Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 369-385. (Technology diffusion and Leader-Followers’ dynamics) 2 4) Growth Empirics Main references: Growth Accounting Robert J.Barro and Xavier Sala-i-Martin (1995): Economic Growth, The MIT Press. Chapter 10.4: Growth Accounting, pp.346-381. Alwyn Young (1995) The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience, The Quarterly Journal of EconomicsVol. 110, No. 3 (Aug., 1995), pp. 641-680 Further readings: Development Accounting Francesco Caselli (2005): Accounting for Cross-Country Income Differences, Handbook of Economic Growth Growth determinants Steven Durlauf, and Jonathan Temple (2005) Growth Econometrics, Handbook of Economic Growth Ross Levine; David Renelt (1992) A Sensitivity Analysis of Cross-Country Growth Regressions, The American Economic Review, Vol. 82, No. 4. (Sep., 1992), pp. 942-963. Xavier Sala-i-Martin (1997)"I Just Ran Two Million Regressions", American Economic Review, Vol. 87, n.2, pp. 178-183. Xavier Sala-i-Martin, Gernot Doppelhofer and Ronald Miller (2004) "Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach" American Economic Review, September 2004 The convergence debate The Controversy on Convergence in The Economic Journal, Vol. 106, No. 437, Jul., 1996 1. Steven N. Durlauf On The Convergence and Divergence of Growth Rates (pp. 1016-1018) 2. Xavier X. Sala-i-Martin The Classical Approach to Convergence Analysis (pp. 1019-1036) 3. Andrew B. Bernard, Charles I. Jones Technology and Convergence (pp. 1037-1044) 4. Danny T. Quah Twin Peaks: Growth and Convergence in Models of Distribution Dynamics (pp. 1045-1055) 5. Oded Galor Convergence? Inferences from Theoretical Models (pp. 1056-1069) 3 Poverty Traps and the Aid Debate Costas Azariadis, and John Stachurski (2005) Poverty Traps, Handbook of Economic Growth Craig Burnside and David Dollar (2000), Aid, Policies, and Growth, The American Economic Review, Vol. 90, No. 4 (Sep., 2000), pp. 847-868 Raghuram G. Rajan and Arvind Subramanian (2005), Aid and Growth: What Does the Cross-Country Evidence Really Show? IMF WP/05/127 David Roodman (2007) The Anarchy of Numbers: Aid, Development, and Cross-country Empirics, Center for Global Development, Working Paper #32 4