ECO 521, 621 & 603 – Graduate Macroeconomic Theory

University of Miami, School of Business Administration

Professor: Dr. David L. Kelly (Dave)

Fall 2004

Department:	Economics
Number:	ECO 521, 621 & 603 – Graduate Macroeconomic Theory
Class Meeting Time/Place:	Monday and Thursday, 9:25 a.m. - 10:40 p.m., GB 435
Phone:	305-284-3725
Office & Hours:	517H Jenkins, School of Business, Wednesday from 3 - 4 p.m.
Email:	dkelly@miami.edu

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REFERENCES

Note: we do not have online subscriptions to every article in the bibliography. In particular, the Journal of Monetary Economics is not available. Contact me for these articles.

1. Introduction and math review.
2. Growth.
1. Optimal Growth Model
• Cass, D. (1965). Optimum growth in an aggregative model of capital accumulation. Review of Economic Studies, 32, 233-240.
  
  
• King, R. and Rebelo, S. (1993). Transitional dynamics and economic growth in the neoclassical model. American Economic Review, 83(4), 909-931.
  
  
• Santos, M. (1991). Smoothness of the policy function in discrete time economic models. Econometrica, 59(5), 1365-1382.
  
  
• Santos, M. (1994). Smooth dynamics and computation in models of economic growth. Journal of Economic Dynamics and Control, 18(3,4), 879-895. (NOTE: Select “Volume 18, Issues 3-4, Pages 511-908 (May - July 1994)”, scroll to bottom of screen, and select article.)
  
  
2. Endogenous Growth.
• Grossman, G. and Helpman, E. (1994). Endogenous innovation in the theory of growth. Journal of Economic Perspectives, 8(1), 23-44.
  
  
• Jones, L. and Manuelli, R. (1990). A convex model of equilibrium growth: Theory and policy implications. Journal of Political Economy, 98(5), 1008-1038.
  
  
• Pack, H. (1994). Endogenous growth theory: Intellectual appeal and empirical shortcomings. Journal of Economic Perspectives, 8(1), 55-72.
  
  
• Romer, P. (1986). Increasing Returns and Long--Run Growth. Journal of Political Economy, 94(5), 1002-1036.
  
  
• Romer, P. (1990). Endogenous technical change. Journal of Political Economy, 98(5), S71-S102.
  
  
• Romer, P. (1994). The origins of endogenous growth. Journal of Economic Perspectives, 8(1), 3-22.
  
  
• Solow, R. M. (1994). Perspectives on growth theory. Journal of Economic Perspectives, 8(1), 45-54.
  
  
3. Stochastic Growth.
• Kydland, F. and Prescott, E. (1982). Time to build and aggregate fluctuations. Econometrica, 50(6), 1345-1370.
  
  
3. Monetary Economics.
1. Asset pricing
2. Money in utility function.
• Kimbrough, K. (1986). Inflation, employment, and welfare in the presence of transactions costs. Journal of Money, Credit, and Banking, 18(2), 127-140.
  
  
• McCallum, B. Y. (1987). Inflation: Theory and Evidence. Tech. Rep. 2312, NBER Working Paper.
  
  
3. Cash in advance.
• Cho, J.-o. (1993). Money and the business cycle with one-period nominal contracts. Canadian Journal of Economics, 26(3), 639-659.
  
  
• Lucas, R. and Stokey, N. (1987). Money and interest in a cash-in-advance economy. Econometrica, 55(3), 491-513.
  
  
• Svensson, L. (1985). Money and Asset Prices in a Cash-in-Advance Economy. Journal of Political Economy, 93(5), 919-944.
  
  
4. Overlapping Generations Model with Money.
• Grandmont, J. (1985). On endogenous competitive business cycles. Econometrica, 53(5), 995-1046.
  
  
• Samuelson, P. (1958). An exact consumption-loan model of interest with or without the social contrivance of money. Journal of Political Economy, 66(6), 467-482.
  
  
4. Fiscal Policy.
1. Ricardian Equivalence
2. Optimal Fiscal Policy
3. Models with government bonds and money
4. Social Security and Redistribution
5. Miscillaneous Topics.
1. Solution Methods.
• Baxter, M., Crucini, M., and Rouwenhorst, K. G. (1990). Solving the Stochastic Growth Model by a Discrete-State-Space, Euler-Equation Approach. Journal of Business & Economic Statistics, 8(1), 19-21.
  
  
• Christiano, L. (1990). Solving the Stochastic Growth Model by Linear-Quadratic Approximation and by Value-Function Iteration. Journal of Business & Economic Statistics, 8(1), 23-26.
  
  
• Coleman, W. J. (1990). Solving the Stochastic Growth Model by Policy-Function Iteration. Journal of Business & Economic Statistics, 8(1), 27-29.
  
  
• Den Haan, W. J. and Marcet. A. (1990). Solving the Stochastic Growth Model by Parameterizing Expectations. Journal of Business & Economic Statistics, 8(1), 31-34.
  
  
• Gagnon, J. E. (1990). Solving the Stochastic Growth Model by Deterministic Extended Path. Journal of Business & Economic Statistics, 8(1), 35-36.
  
  
• Ingram, B. F. (1990). Solving the Stochastic Growth Model by Backsolving With an Expanded Shock Space. Journal of Business & Economic Statistics, 8(1), 37-38. (Note: EbscoHost error. Article embedded incorrectly. PDF page forward twice to locate exact article.)
  
  
• Sims, C. A. (1990). Solving the Stochastic Growth Model by Backsolving With a Particular Nonlinear Form for the Decision Rule. Journal of Business & Economic Statistics, 8(1), 45-47.
  
  
• Tauchen, G. (1990). Solving the Stochastic Growth Model by Using Quadrature Methods and Value-Function Iterations. Journal of Business & Economic Statistics, 8(1), 49-51.
  
  
• Taylor, J. B. and Uhlig, H. (1990). Solving Nonlinear Stochastic Growth Models: A Comparison of Alternative Solution Methods. Journal of Business & Economic Statistics, 8(1), 1-17.
2. Continuous Time models.
3. Open Economy Macro
4. Topics of interest to the class.