1 UNIVERSITY OF CALIFORNIA, DEPARTMENT OF ECONOMICS ECONOMICS 202A READING LIST Professors Maurice Obstfeld and David Romer Fall Semester 2011 Main Textbook: David Romer, Advanced Macroeconomics, Fourth Edition (New York: McGraw-Hill, 2012). Part I: August 25 - October 25 (Mid-Term Examination) GSI and Instructor Office Hours: Slavik Sheremirov office hours M 10:30-11:30 A.M. and Th 8:30-9:30 A.M., location TBA. Obstfeld office hours W 1 – 2 P.M., 699 Evans. I. Long-Run Growth: The Solow Model and Growth Accounting *David Romer, Advanced Macroeconomics, Chapter 1. *Robert M. Solow, “A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics, February 1956, pp. 65-94. *Edmund S. Phelps, “The Golden Rule of Accumulation: A Fable for Growthmen,” American Economic Review, September 1961, pp. 638-643. *Robert E. Hall and Charles I. Jones, “Why Do Some Countries Produce So Much More Output per Worker than Others?” Quarterly Journal of Economics, February 1999, pp. 83-116. Peter J. Klenow and Andres Rodríguez-Clare, “The Neoclassical Revival in Growth Economics: Has It Gone Too Far?” NBER Macroeconomics Annual, 1997, pp. 73-103. Robert E. Lucas, Jr., “Why Doesn’t Capital Flow from Rich to Poor Countries?” American Economic Review, May 1990, pp. 92-96. Willam A. Brock and M. Scott Taylor, “The Green Solow Model,” Journal of Economic Growth, June 2010, pp. 125-153. II. Long-Run Growth: The Ramsey-Cass-Koopmans Model *David Romer, Advanced Macroeconomics, Chapter 2, Part A.Robert J. Barro and Xavier Sala-i-Martin, Economic Growth, Second Edition (Cambridge: MIT Press, 2004), Chapter 2 and Appendix A.3 (at end of book). Robert J. Barro. “Laibson Meets Ramsey in the Neoclassical Growth Model.” Quarterly Journal of Economics, November 1999, pp. 1125–1152. *Olivier J. Blanchard and Charles M. Kahn, “The Solution of Linear Difference Models under Rational Expectations,” Econometrica, September 1980, pp. 1305-1311. *Maurice Obstfeld, “Dynamic Optimization in Continuous-Time Models (A Guide for the Perplexed),” manuscript, UC Berkeley, April 1992. Available at: http://www.econ.berkeley.edu/~obstfeld/ftp/perplexed/cts4a.pdf Martin Weitzman, Income, Wealth, and the Maximum Principle (Cambridge, MA: Harvard University Press, 2003). III. Overlapping Generations: Growth, Dynamic Efficiency, and Public Debt *David Romer, Advanced Macroeconomics, Chapter 2, Part B. Andrew B. Abel, N, Gregory Mankiw, Lawrence H. Summers, and Richard J. Zeckhauser, “Assessing Dynamic Efficiency: Theory and Evidence,” Review of Economic Studies, January 1989, pp. 1-19. *Robert J. Barro, “Are Government Bonds Net Wealth?” Journal of Political Economy, November/December 1974, pp. 1095-1117. Olivier J. Blanchard, “Debts, Deficits, and Finite Horizons,” Journal of Political Economy, April 1985, pp. 223-247. *Peter A. Diamond, “National Debt in a Neoclassical Growth Model,” American Economic Review, December 1965, pp. 1126-1150. Alberto Martin and Jaume Ventura, “Economic Growth with Bubbles,” Working Paper 15870, National Bureau of Economic Research, April 2010. Maurice Obstfeld and Kenneth Rogoff, Foundations of International Macroeconomics (Cambridge: MIT Press, 1996), pp. 445-448. Paul A. Samuelson, “An Exact Consumption Loan Model of Interest with or without the Social Contrivance of Money,” Journal of Political Economy, December 1958, pp. 467-482. *Jean Tirole, “Asset Bubbles and Overlapping Generations,” Econometrica, November 1985, pp. 1499-1528. IV. Long-Run Growth: Endogenous Growth Theory *David Romer, Advanced Macroeconomics, Chapter 3.3 Charles I. Jones, “Growth and Ideas,” in Philippe Aghion and Steven Durlauf , eds., Handbook of Economic Growth, Volume 1B (Amsterdam: Elsevier, 2005), pp. 1063-1111. *Michael Kremer, “Population Growth and Technical Change: One Million B.C. to 1990,” Quarterly Journal of Economics, August 1993, pp. 681-716. Robert E. Lucas, Jr., “On the Mechanics of Economic Development,” Journal of Monetary Economics, July 1988, pp. 3-42. *Maurice Obstfeld and Kenneth Rogoff, Foundations of International Macroeconomics (Cambridge: MIT Press, 1996), pp. 473-496. Paul M. Romer, “Endogenous Technical Change,” Journal of Political Economy, October 1990 (Part 2), pp. S71-S102. V. International Economics *Ben Bernanke, “Remarks by Governor Ben S. Bernanke: The Global Saving Glut and the U.S. Current Account Deficit,” March 10, 2005. Available at: http://www.federalreserve.gov/boarddocs/speeches/2005/20050414/default.htm Richard Dobbs et al., Farewell to Cheap Capital? The Implications of Long-Term Shifts in Global Investment and Saving (McKinsey Global Institute, 2010). Rudiger Dornbusch, "Expectations and Exchange Rate Dynamics," Journal of Political Economy, December, 1976, pp. 1161-1176. Francesco Giavazzi and Luigi Spaventa, “Why the Current Account Matters in a Monetary Union: Lessons from the Financial Crisis in the Euro Area,” Discussion Paper 8008, Centre for Economic Policy Research (London), September 2010. Paul Krugman, "Has the Adjustment Process Worked?” in International Adjustment and Financing: The Lessons of 1985-1991, edited by C. Fred Bergsten (Washington, DC: Institute for International Economics, 1991), pp, 277- 322. *Maurice Obstfeld and Kenneth Rogoff, “Global Imbalances and the Financial Crisis: Products of Common Causes,” in Reuven Glick and Mark M. Spiegel, eds., Asia and the Global Financial Crisis (San Francisco: Federal Reserve Bank of San Francisco, 2010).Part II: October 27-December 7 GSI and Instructor Office Hours: Vico Vanasco, office hours TBA. VI. Current Crises in Macroeconomicsa Economic Report of the President, 2010, Chapter 2, “Rescuing the Economy from the Great Recession” (Washington, DC: Government Printing Office, 2010), pp. 39-56 only. *David Romer, Advanced Macroeconomics, fourth edition, “Epilogue,” pp. 644-648. Carmen M. Reinhart and Kenneth S. Rogoff, This Time is Different, Chapter 14, “The Aftermath of Financial Crises” (Princeton: Princeton University Press, 2009), pp. 223-239. *Ben S. Bernanke, “Japanese Monetary Policy: A Case of Self-Induced Paralysis?” in Ryoichi Mikitani and Adam S. Posen, eds., Japan’s Financial Crisis and Its Parallels to U.S. Experience (Washington, D.C.: Institute for International Economics, 2000), pp. 149-166.