Readings

Texts

Romer, David. Advanced Macroeconomics. 2nd ed. Boston, MA: McGraw Hill, 2001. ISBN: 0072318554.

Temin, Peter. Lessons from the Great Depression. Cambridge, MA: MIT Press, 1991, paperback. ISBN: 0262700441.

Readings by Session

Course readings.
Lec #	topics	readings
Unit 1 - Economic Growth
1	Introduction	Easterlin, Richard A. "The Worldwide Standard of Living Since 1800." Journal of Economic Perspectives 14 (Winter 2000): 7-26.
2-3	Solow Growth Model	Romer, David. Advanced Macroeconomics. Chapter 1. Denison, Edward F. Why Growth Rates Differ. Washington, DC: Brookings Institution, 1967, chapter 21, pp. 296-301 and 319-345.
4-5	TFP and Economic Growth	Jones, Charles I. "On the Evolution of the World Income Distribution." Journal of Economic Perspectives 11 (Summer 1997): 19-36. Abramovitz, Moses, and Paul A. David. "American Macroeconomic Growth in the Era of Knowledge-Based Progress: A Long-Run Interpretation." In The Cambridge Economic History of the United States. Vol. 3. Edited by Stanley L. Engerman and Robert E. Gallman. Cambridge, UK: Cambridge University Press, 2000, pp. 1-40 (only). ISBN: 0521553083. Young, Alwyn. "Lessons from the East Asian NICs: A contrarian view." European Economic Review 38 (April 1994): 964-73. Sachs, Jeffery. "Reforms in Eastern Europe and the Former Soviet Union in Light of the East Asian Experience." Journal of the Japanese and International Economies 9 (December 1995): 454-485. Svejnar, Jan. "Transition Economies: Performance and Challenges." Journal of Economic Perspectives 16 (Winter 2002): 3-28.
6-7	New Growth Theory	Romer, David. Advanced Macroeconomics. Sections 3.1, 3.2, 3.4, 3.8-10, and 3.12.
8-9	Knowledge and Economic Growth	Romer, David. Advanced Macroeconomics. Section 3.7. Temin, Peter. "Evolutionary History: A Review Essay." Journal of Interdisciplinary History 28, no. 3 (Winter 1998): 405-15. Acemoglu, Daron, Simon Johnson, and James A. Robinson. "The Colonial Origins of Comparative Development: An Empirical Investigation." American Economic Review 91 (December 2001): 1369-87. ———. "An African Success Story: Botswana." In Search of Prosperity: Analytical Narrative on Economic Growth. Edited by Dani Rodrik. Princeton, NJ: Princeton University Press, 2003. ISBN: 0691092699.
10	First Exam
Unit 2 - Savings
11-12	Representative Consumer Model	Romer, David. Advanced Macroeconomics. Sections 2.1, 7.4, and 7.5. Siegel, Jeremy J., and Richard H. Thaler. "Anomalies: The Equity Premium Puzzle." Journal of Economic Perspectives 11 (Winter 1997): 191-200. Romer, David. Advanced Macroeconomics. Sections 2.7, and 11.2-3.
13-14	Overlapping Generations Model	Romer, David. Advanced Macroeconomics. Chapter 2B.
15-16	Government Policy, Savings, and Social Security	Diamond, Peter A. "Social Security, the National Budget, and National Savings." MIT Department of Economics Working Paper 05-09. Diamond, Peter A., and Peter R. Orszag. "Saving Social Security." Journal of Economic Perspectives 19 (Spring 2005): 11-32. Feldstein, Martin. "Structural Reform of Social Security." Journal of Economic Perspectives 19 (Spring 2005): 33-55.
17	International Comparisons	Gruber, Jonathan, and David Wise. "Social Security, Retirement Incentives, and Retirement Behavior: An International Perspective." In Demographic Change and Fiscal Policy. Edited by Alan J. Auerbach and Ronald D. Lee. Cambridge, UK: Cambridge University Press, 2001, pp. 159-90. ISBN: 0521662443.
18	Second Exam
Unit 3 - Exchange Rates and Wage Setting
19-20	Mundell-Fleming Model	Romer, David. Advanced Macroeconomics. Section 5.2. Eichengreen, Barry, and Jeffrey Sachs. "Exchange Rates and Economic Recovery in the 1930s." Journal of Economic History 45 (December 1985): 925-46. Temin, Peter. Lessons from the Great Depression. Appendix A, pp. 139-46.
21	Great Depression, Bretton Woods and Today	Temin, Peter. Lessons from the Great Depression. Chapters 1 and 2. Eichengreen, Barry. "Global Imbalances and the Lessons of Bretton Woods." NBER WP 10497. May 2004.
22-23	Unemployment Then and Now	Romer, David. Advanced Macroeconomics. Section 5.3. Temin, Peter. Lessons from the Great Depression. Chapter 3. Nickell, Stephen. "Unemployment and Labor Market Rigidities; Europe versus North America." Journal of Economic Perspectives 11 (Summer 1997): 55-74.
24-25	The International Economy	Eichengreen, Barry. "Financial Instability." In Global Crises, Global Solutions. Edited by Bjorn Lomborg. Cambridge, UK: Cambridge University Press, 2004, pp. 251-72. ISBN: 0521606144.
26	Third Exam

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