Sylabus
Part I 1. Neoclassical Growth Model
· Robert King and Sergio Rebelo.“Transitional Dynamics and Economic Growth in the Neoclassical Model,” The American Economic Review, 83(4): 908–931, 1993.
· Timothy J. Kehoe and Edward C. Prescott (2002). „Great Depressions of the Twentieth Century,” Review of Economic Dynamics, 5:1–18.
· Kaiji Chen, Ayse Imrohoroglu, and Selahattin Imrohoroglu. „The Japanese Saving Rate.” American Economic Review, 96(5): 1850–1858, 2006.
· Per Krusell, Lee Ohanian, Victor Ríos-Rull and Gianluca Violante. „Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis,“ Econometrica, 68: 1029–1054, 2000.
· Loukas Karabarbounis and Brent Neiman. „The global decline of the labor share,“ The Quarterly Journal of Economics 129: 61–103, 2014.
· Charles Jones. „Pareto and Piketty: The Macroeconomics of Top Income and Wealth Inequality,“ Journal of Economic Perspectives, 29: 29-46, 2015. 2. Labor Search
· Richard Rogerson, Robert Shimer, and Randall Wright. “Search-theoretic models of the labor market - a survey,” National Bureau of Economic Research, 2004.
· Kenneth Burdett, and Dale T. Mortensen. “Wage differentials, employer size, and unemployment,” International Economic Review, 257-273, 1998.
· Robert Shimer. “The Cyclical Behavior of Equilibrium Unemployment and Vacancies,” American Economic Review, 25-49, 2005.
· Marcus Hagedorn and Iurii Manovskii. “The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited,” American Economic Review, 1692-1706, 2008.
Part II
Course outline
Deterministic dynamic optimization problems. a. Canonical model. b. Efficient Allocations. i. Sequence Approach. ii. Function Space and Dynamic Programming. c. Properties of Solutions. d. Numerical Methods.
Equilibrium Concepts. a. No Uncertainty. i. Sequence concepts:
A. Date 0 Arrow-Debreu.
B. Sequence-of-Markets. ii. Recursive Competitive Equilibrium. b. Adding Uncertainty.
Application: Growth Theory. a. Exogenous Growth. b. Endogenous Growth. c. Overlapping Generations.
Asset Pricing and Risk Sharing.
Introducing Financial Frictions (if time permits).