Table of Contents
Study Materials
Readings
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| SES # | TOPICS | READINGS |
|---|---|---|
| Labor Markets | ||
| 1 | Nominal vs Real Rigidities | Blanchard, O. J., and S. Fischer. Lectures on Macroeconomics. Cambridge, MA: MIT Press, 1989, pp. 372-374, 427. ISBN: 0262022834. Card, D., and D. Hyslop. "Does Inflation 'Grease the Wheels of the Labor Market'?" NBER working paper #5538, April 1996. Abraham, K., and J. Haltiwanger. "Real Wages and the Business Cycle." Journal of Economic Literature 33, no. 3 (1995): 1215-1264. |
| 2 | Intertemporal Substitution in Labor Supply | Blanchard, O. J., and S. Fischer. Lectures on Macroeconomics. Cambridge, MA: MIT Press, 1989, pp. 337-346. ISBN: 0262022834. Lucas, R. E., and L. A. Rapping. "Real Wages, Employment, and Inflation." Journal of Political Economy 77, no. 5 (1969): 721-754. Barro, R., and R. King. "Time Separable Preferences and Intertemporal Substitution Models of the Business Cycle." Quarterly Journal of Economics 99, no. 4 (1984): 817-840. |
| 3 | Employment Relationships and Incomplete Contracts in Equilibrium | Blanchard, O. J., and S. Fischer. Lectures on Macroeconomics. Cambridge, MA: MIT Press, 1989, pp. 438-463. ISBN: 0262022834. Katz, L. "Efficiency Wage Theories: A Partial Evaluation." In NBER Macroeconomics Annual. Vol. 1. Cambridge, MA: MIT Press, 1986, pp. 235-289. Shapiro, C., and J. Stiglitz. "Equilibrium Unemployment as a Worker Discipline Device." American Economic Review 74, no. 3 (1984): 259-293. Woodford, M. "Structural Slumps." JEL 32, no. 4 (1994): 1784-1815. Hall, R. E., and E. P. Lazear. "The Excess Sensitivity of Layoffs and Quits to Demand." Journal of Labor Economics 2, no. 2 (1984): 233-257. Hall, R. E. "Labor Market Frictions and Employment Fluctuations." In Handbook of Macroeconomics. Edited by J. B. Taylor, and M. Woodford. Amsterdam, North Holland: Elsevier Science Publishing Company, 1999, Chapter 17. ISBN: 0444825282. Ramey, et. al. "Contractual Fragility, Job Destruction, and Business Cycles." Quarterly Journal of Economics 112, no. 3 (1997): 873-911. Caballero, R., and M. Hammour. "The 'Fundamental Transformation' in Macroeconomics." American Economic Review 86, no. 2 (1997): 181-186. Caballero, R. "The Macroeconomics of Specificity." Journal of Political Economy 106, no. 4 (1998): 724-767. Blanchard, O. J. "The Medium Run." BPEA 2 (1997): 89-158. Caballero, R., and M. Hammour. "Jobless Growth: Appropriability, Factor Substitution, and Unemployment." Carnegie-Rochester Conference Series on Public Policy (1998). Acemoglu, D. "Why do New Technologies Complement Skills? Directed Technical Change and Wage Inequality." Quarterly Journal of Economics 113, no. 4 (1998): 1055-90. |
| 4 | Flows, Search and Restructuring | Blanchard, O. J., and P. Diamond. "The Beveridge Curve." BPEA 2 (1989): 85-155. Davis, S. J., and J. Haltiwanger. "Gross Job Creation, Gross Job Destruction and Employment Reallocation." Quarterly Journal of Economics 107, no. 3 (1992): 819-864. Mortensen, D., and C. Pissarides. "Job Reallocation, Empoyment Fluctuations and Unemployment." In Handbook of Macroeconomics. Edited by J. B. Taylor, and M. Woodford. Amsterdam, North Holland: Elsevier Science Publishing Company, 1999, Chapter 18. ISBN: 0444825282.Caballero, R. J., and M. L. Hammour. "On the Timing and Efficiency of Creative Destruction." Quarterly Journal of Economics 111, no. 3 (1996): 805-852. Caballero, R., and M. Hammour. "The Cost of Recessions Revisited: A Reverse-Liquidationist View." Forthcoming RESTUD 2004. Koenders, K., and R. Rogerson. "Organizational Dynamics Over the Business Cycle: A View on Jobless Recoveries." St. Louis Federal Reserve Bank Economic Policy Conference, working paper, October 2004. (PDF) |
| Financial and Credit Markets | ||
| 5 | Amplification and Persistence | Blanchard, O. J., and S. Fischer. Lectures on Macroeconomics. Cambridge, MA: MIT Press, 1989, pp. 478-488. ISBN: 0262022834. Bernanke, B., and M. Gertler. "Agency Costs, Net Worth, and Business Fluctuations." American Economic Review 79, no. 1 (1989): 14-31. Greenwald, B. C., and J. E. Stiglitz. "Financial Market Imperfections and Business Cycles." Quarterly Journal of Economics 108, no. 1 (1993): 77-114. Kiyotaki, N., and J. Moore. "Credit Cycles." Journal of Political Economy 105 (1997): 211-248. |
| 6 | Banks and the Credit Crunch | Bernanke, B., and A. Blinder. "Credit, Money and Aggregate Demand." American Economic Review 78, no. 2 (1988): 435-439. Kashyap, A., and J. Stein. "Monetary Policy and Bank Lending." In Monetary Policy. Edited by N.G. Mankiw. Chicago, IL: University of Chicago Press, 1994, pp. 221-262. ISBN: 0226503089. Bernanke, B. S., and C. S. Lown. "The Credit Crunch." BPEA 2 (1991): 205-247. Holmstrom, B., and J. Tirole. "Financial Intermediation, Loanable Funds, and the Real Sector." Quarterly Journal of Economics 112, no. 3 (1997): 663-691. Diamond, D. W., and P. H. Dybvig. "Bank Runs, Deposit Insurance, and Liquidity." Journal of Political Economy 91, no. 3 (1983): 401-419. Caballero, R., and A. Krishnamurthy. "A Dual Liquidity Model of Emerging Markets." American Economic Review , Papers and Proceedings 92, no. 2 (2002). Bernanke, B., and A. Blinder. "Credit, Money and Aggregate Demand." American Economic Review 78, no. 2 (1988): 435-439. |
| 7 | Bubbles | Tirole, J. "Asset Bubbles and Overlapping Generations." Econometrica 53, no. 6 (1985): 1499-1528. Santos, M. S., and M. Woodford. "Rational Asset Pricing Bubbles." Econometrica 65, no. 1 (1997): 19-58. Shiller, Robert. Irrational Exuberance. Princeton, NJ: Princeton University Press, 2000. ISBN: 0691050627. Abel, A. B., N. G. Mankiw, L. H. Summers, and R. J. Zeckhauser. "Assessing Dynamic Efficiency: Theory and Evidence." Review of Economic Studies 56, no. 1 (1989): 1-20. Caballero, R. J, E. Farhi, and M. L. Hammour. "Speculative Growth: Hints from the US Economy." NBER working paper #10518, May 2004. (PDF) Abreu, D., and M. Brunnermeier. "Bubbles and Crashes." Econometrica 71, no. 1 (2003): 173-204. Ventura, J. "A Portfolio View of the U.S. Current Account Deficit." Brookings Paper on Economic Activity, 2001. Allen, F., and D. Gale. "Bubbles and Crises." Economic Journal 110, no. 460 (2000): 236-255. Scheinkman, J., and W. Xiong. "Overconfidence and Speculative Bubbles." Journal of Political Economy 111, no. 6 (2003): 1183-1219. Panageas, S. "Overpricing, speculation and investment." MIT mimeo, October 2003. |
| The Goods Market | ||
| 8 | Markups | Rotemberg, J. J., and M. Woodford. "The Cyclical Behavior of Prices and Costs." In Handbook of Macroeconomics. Edited by J. B. Taylor, and M. Woodford. Amsterdam, North Holland: Elsevier Science Publishing Company, 1999, Chapter 16. ISBN: 0444825282. Bils, M. "The Cyclical Behavior of Marginal Cost and Price." American Economic Review 77, no. 5 (1987): 838-855. Shea, J. "Do Supply Curves Slope Up?" Quarterly Journal of Economics 108, no. 1 (1993): 1-32. Bils, M., and Y. Chang. "Understanding How Price Responds to Costs and Production." Carnegie-Rochester Conference Series on Public Policy 52, no. 1 (2000): 33-77. |
| 9 | Complementarities | Benhabib, J., and R. Farmer. "Indeterminandy and Sunspots in Macroeconomics." In Handbook of Macroeconomics. Edited by J. B. Taylor, and M. Woodford. Amsterdam, North Holland: Elsevier Science Publishing Company, 1999. ISBN: 0444825282. Cooper, R., and A. John. "Coordinating Coordination Failures in Keynesian Models." Quarterly Journal of Economics 103, no. 3 (1988): 441-464. Kiyotaki, Nobuhiro. "Multiple Expectational Equilibria under Monopolistic Competition." Quarterly Journal of Economics 103, no. 4 (1988): 695-713. Murphy, K. M., A. Shleifer, and R. W. Vishny. "Industrialization and the Big Push." Journal of Political Economy 97 (1989): 1003-1026. |
| 10 | Small Costs of Price Adjustments | Blanchard, O. J. "Why Does Money affect Output? A Survey." In Handbook of Monetary Economics. Edited by B. M. Friedman, and F. H. Hahn. Amsterdam, North Holland: Elsevier Science Publishing Company, 1990. ISBN: 0444880259. Akerlof, G. A., and J. L. Yellen. "A Near-Rational Model of the Business Cycle, with Wage and Price Inertia." Quarterly Journal of Economics 100, supplement (1985): 823-828. Caplin A., and D. Spulber. "Menu Costs and the Neutrality of Money." Quarterly Journal of Economics 102, no. 4 (1987): 703-726. Caballero, R. J., and E. Engel. "Heterogeneity and Output Fluctuations in a Dynamic Menu Costs Model." Review of Economic Studies 60, no. 1 (1993): 95-120. Caplin, A., and J. Leahy. "State-Dependent Pricing and the Dynamics of Money and Output." Quarterly Journal of Economics 106, no. 3 (1991): 683-708. Caballero, R. J., and E. Engel. "Microeconomic Rigidities and Aggregate Price Dynamics." European Economic Review 37, no. 4 (1993): 697-717. Carlton, D. "The Rigidity of Prices." American Economic Review 76, no. 4 (1986): 637-658. Calvo, G. "Staggered Prices in a Utility Maximizing Framework." Journal of Monetary Economics 12, no. 3 (1983): 383-398. Golosov, M., and R. Lucas. "Menu Costs and Phillips Curves." NBER working paper #10187, December 2003. Bils, M, and P. Klenow. "Some Evidence on the Importance of Sticky Prices." Journal of Political Economy 112, no. 5 (2004): 947-985. |