Economics 1011b: Macroeconomics
Spring 2002
Professors:
Francesco Caselli and Alberto Alesina
Caselli's Office: Littauer 212
Phone: 496-7081
Email: caselli@harvard.edu
Office hours: Tuesday, 5:00-7:00 either in Littauer 204 or in Littauer 212 (they are
close, so check both places).
Alesina's Office: Littauer 324
Phone: 495-8388
Email: aalesina@harvard.edu
Office hours: Monday 3:30-5:30
Teaching Fellows (and office hours)*:
Charles Cohen (Head TF), cpcohen@fas, Monday 10-11
Mariana Colacelli, colacell@fas, Monday 11:30-12:30
Federico Etro, fetro@nber.org, Monday 1-2
*All TF’s Office Hours in Littauer Basement.
Ec 1011b covers macroeconomics, including such topics as economic
fluctuations, economic growth, and monetary and fiscal policy. They are taught at
an intermediate level and are aimed at sophomores majoring in economics
(although students in other majors are welcome). All students are assumed to
have already studied microeconomics and macroeconomics at the principles level
(Ec 10). Students are also assumed to be comfortable with mathematics through
multivariate calculus.
The course has two 90-minute lectures each week: Tuesday and Thursday,
10:00 to 11:30. In addition, each student is assigned to a smaller discussion
section, which meets for one hour each week. The course requirements are a
midterm exam, a final exam, and regular problem sets.
Two professors teach this course. Professor Caselli will teach the first 11
weeks. Professor Alesina will give the final 4 lectures, beginning April 23, on
issues in political economy. The midterm exam will be on Thursday March 14.
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The required readings for the course are:
For Caselli’s part:
Macroeconomics, 4th edition, by N. Gregory Mankiw (Worth Publishers).
Introduction to Economic Growth, by Charles I. Jones (Norton).
For Alesina's part:
Political Cycles and the Macroeconomy, by Alberto Alesina, Nouriel Roubini, and
Gerald Cohen (MIT Press)
For the reading period:
Peddling Prosperity, by Paul Krugman (Norton Publishers).
All of these books should be available at the Harvard Coop. You will receive more
detailed schedules from each professor about which parts to read and for which
lectures.
Several optional learning tools are also available. One is the workbook to
accompany the Mankiw text, which is available at the Coop. Nothing will be
assigned from the workbook, but you might find it helpful as you review for exams.
In addition, you might find the website to accompany the Mankiw text helpful:
www.worthpublishers.com/mankiw. Also, if you prefer, you can obtain electronic
versions of the Mankiw and Jones texts at www.wizeup.com.
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Frequently Asked Questions
Should I take 1010b or 1011b?
Economics 1010b and 1011b cover similar material, so you cannot take both
courses. Economics 1010b uses a somewhat less mathematical approach than
Economics 1011b. If you like mathematics and feel comfortable with multivariate
calculus, take 1011b. If not, take 1010b.
How is the course graded?
The final exam counts for 50 percent, the midterm 35 percent, and the
problem sets 15 percent.
How often are the problem sets?
Problem sets will be assigned almost every week. The problem sets will be
discussed in the sections.
Do I really have to read the Krugman book?
Yes. The Krugman book is required reading, but you can do it whenever is
most convenient during the term. If you wish, you can read it during the spring
reading period. The material in this book will be included on the final exam, but not
on the midterm.
What is the purpose of section?
Each week in section, you will receive your graded problem set from the previous
week, receive an answer sheet for the previous week's problem set, and discuss
any questions you have on the problems, readings, or lectures. In addition, each
section leader will review lecture material and/or present supplementary material
not covered in lecture. Your section leader will also be available during regular
office hours to answer your questions.
Can my friends and I work together on the problem sets?
Yes. The problem sets are intended to be learning experiences, so feel free
to work in groups. Experience shows, however, that it is best to try the problems
yourself before discussing them with your study group.
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How are the problem sets graded?
They will be graded on a scale of check plus, check, check minus, zero (if
not handed in). For calculating your final grade, your lowest two problem set
grades will be dropped.
Can I turn a problem set in late?
Absolutely not. No late problem sets will be accepted. Problem sets are due
on Tuesdays by the end of lecture, unless otherwise specified.
When is the midterm exam?
The midterm exam will be given on Thursday March 14.
Am I responsible for material covered in section?
Absolutely yes. Topics covered in section will be included in both the
midterm and the final.
What if I cannot make the midterm?
To skip the midterm, you must have a note from some acceptable authority
figure explaining your absence. Without an acceptable excuse, missed midterms
will be given a failing grade. If you have an acceptable excuse, we will give extra
weight to the final examination.
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Ec 1011b
Spring 2002
Schedule of topics and homework for Professor Caselli's part of course
Week 1
Thursday, Jan 31: Mankiw Chapter 3, National Income
Problem Set 1: Mankiw page 71, #3, 6; page 76, #2.
Week 2
Tuesday, Feb 5: Jones Chapters 1 and 2.1, Intro to Growth, and the Solow Model
Thursday, Feb 7: Jones Chapter 2.2, The Solow Model and Technology
Problem set 2: Jones Chapter 2, #1, 2, 3, 4, 5.
Week 3
Tuesday, Feb 12: Jones Chapters 2.3, 2.4, and 3, Empirical Applications
Thursday, Feb 14: Jones Chapters 4 and 5, Endogenous Growth
Problem set 3: Jones Chapter 2, #6, Chapter 3, #3, 4, Chapter 5, #1, 2, 3
Week 4
Tuesday, Feb 19: Jones Chapter 6, Technology Diffusion
Thursday, Feb 21: Jones Chapter 7, Institutions
Section topic: Jones Chapter 8, Alternative Theories of Endogenous Growth
Problem set 4: Jones Chapter 6, #1, 2, 5, Chapter 7, #3
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Week 5
Tuesday, Feb 26: Jones Chapter 9, Geography
Thursday, Feb 28: Discussion of International Economic Policy and Globalization
Problem set 5: TBA in class (remind me!)
Week 6
Tuesday, Mar 5: Mankiw Chapter 6, Unemployment
Thursday, Mar 7: Mankiw Chapter 7, Money and Inflation
Problem set 6: page 152, #1, 3, 6; page 189, #4, 5; page 192, #1
Week 7
Tuesday, Mar 12: TBA
Thursday, Mar 14: MIDTERM EXAM
Section topic: no section this week
Problem set: no problem set this week
Week 8
Tuesday, Mar 19: Mankiw Chapter 10, Aggregate Demand I
Thursday, Mar 21: Mankiw Chapter 11, Aggregate Demand II
Section topic: Chapter 9, Review of the AD/AS model
Problem set 8: page 305, #1, 2, 4, 7, 8
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Week 9
Tuesday, Apr 2: Mankiw Chapter 8, The Open Economy
Thursday, Apr 4: Mankiw Chapter 12, Aggregate Demand in the Open Economy
Section topic: Chapter 16, Consumption
Problem set 9: page 222, #3, 8; page 233, #1, 2; page 341, #1, 3
Week 10
Tuesday, Apr 9: Mankiw Chapter 13, Aggregate Supply
Thursday, Apr 11: Mankiw Chapter 14, Stabilization Policy
Section topic: Chapter 17, Investment
Problem set 10: page 378, #3, 5, 6, 7, page 406, #1
Week 11
Tuesday, Apr 16: Mankiw Chapter 15, Government Debt and Budget Deficits
Thursday, Apr 18: Mankiw Chapter 19, Advances in the Theory of Economic
Fluctuations
Section topic: Chapter 18, Money Supply and Money Demand
Problem set 11: page 431, #1, 2, 3, page 525, #2, 4
Weeks 12 and 13
TBA
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