Reed College
Reed College

Economics 314

Macroeconomic Theory
Spring 2019
Jeffrey Parker, Reed College
Assignments

Daily Problems

  1. January 30: Existence conditions for aggregate production functions
  2. January 31: Deriving the k-dot equation
  3. February 1: Convergence in the Solow model
  4. February 4: Two-period budget constraints
  5. February 6: Consumption smoothing (optional: homework day)
  6. February 7: Euler equation
  7. February 8: Ramsey-model dynamics
  8. February 11: Government spending in the Ramsey model
  9. February 13: Assets in the overlapping-generations model (optional: homework day)
  10. February 14: Dynamic inefficiency in the overlapping-generations model
  11. February 15: Knowledge as a public good
  12. February 18: Dynamics of the R&D model
  13. February 20: Dynamics of Romer's human-capital model (optional: homework day)
  14. February 21: Empirical growth studies
  15. February 27: Budget contraint with labor (optional: take-home exam due)
  16. February 28: RBC model effects
  17. March 1: Steady-state inflation
  18. March 4: Changes in money demand
  19. March 6: Multiplier
  20. March 7: IS-LM effects
  21. March 8: AS-AD effects
  22. March 11: New Keynesian utility function
  23. March 13: New Keynesian LM curve (optional: homework day)
  24. March 14: Phillips curve 
  25. March 15: Lucas model
  26. March 18: Solving the Lucas model 
  27. March 20: Maximizing the Dixit-Stiglitz utility function (optional: homework day)
  28. March 21: Solving the imperfect-competition model
  29. March 22: Coordination failures in the Cooper and John model
  30. April 1: Profit maximization and price adjustment
  31. April 3: Dynamic price setting
  32. April 4: Fischer's predetermined-price model
  33. April 5: Taylor's fixed-price model
  34. April 8: Calvo's probabilistic price-setting model
  35. April 10: Inflation inertia (Optional: homework day)
  36. April 11: Unemployment measurement
  37. REVISED DATE = APRIL 15: Shapiro-Stiglitz model
  38. April 17: Shapiro-Stiglitz equilibrium
  39. April 22: Matching model
  40. April 24: Matching model effects
  41. April 25: Simple insider-outsider model
  42. April 26: Capital theory
  43. April 29: Adjustment cost model
  44. May 1: q model dynamics: (Optional: exam due)
  45. May 2: Modigliani-Miller theorem

Projects and Problems

  • Project #1: Exercises related to the Solow growth model (Due: February 6)
  • Project #2: Exercises on Solow and Ramsey growth models (Due: February 13)
  • Project #3: Ramsey and Diamond model exercises (Due: February 20)
  • Project #4: Dynamic simulation of RBC model (Due: March 6) [Dynare-template.mod]
  • Project #5: Algebraic solutions to the IS/LM model (Due: March 13)
  • Project #6: Working with the New Keynesian IS/LM and IS/MP models (Due: March 20)
  • Project #7: Price and wage stickiness (Due: April 10)
  • Project #8: Presentation of papers on price stickiness (In class: April 18 & 19)
  • Project #9: Exercises on unemployment models (Due: April 24)

Papers of the week

  • February 1: Mankiw, N. Gregory, David Romer, and David N. Weil. 1992. A Contribution to the Empirics of Economic Growth. Quarterly Journal of Economics 107 (2):407-37.
  • February 8: Pritchett, Lant. 1997. "Divergence, Big Time." Journal of Economic Perspectives 11 (3):3-17.
  • February 15: Gordon, Robert J. 2012. "Is U.S. Economic Growth Over? Faltering Innovation Confronts the Six Headwinds." National Bureau of Economic Research Working Paper Series No. 18315.
  • March 1: Shapiro, Matthew D. 1993. Cyclical Productivity and the Workweek of Capital.  American Economic Review 83 (2):229-33.
  • March 8: Keynes, John Maynard. 1936. The General Theory of Employment, Interest and Money. New York: Harcourt, Brace. Chapters 8, 9, and 10. 
  • March 15: Friedman, Milton. 1968. The Role of Monetary Policy. American Economic Review 58 (1):1-17.
  • March 22: Ball, Laurence. 1994. What Determines the Sacrifice Ratio? In Monetary Policy, edited by N. Gregory Mankiw, 155-82. Chicago and London: University of Chicago Press.
  • April 5: Sargent, Thomas J. 1982. The Ends of Four Big Inflations. In Inflation: Causes and Effects, edited by Robert E. Hall. Chicago: University of Chicago Press.
  • April 12: Coibion, Olivier, Yuriy Gorodnichenko, and Rupal Kamdar. 2018. "The Formation of Expectations, Inflation, and the Phillips Curve." Journal of Economic Literature 56 (4):1447-91.
  • April 19: SELECT YOUR OWN PAPER 
  • April 26: Akerlof, George A. 2007. The Missing Motivation in Macroeconomics. American Economic Review 97 (1):5-36.