Topics in Macroeconomics II (second
half) - Winter 2010
Barcelona Graduate School of Economics
UPF Graduate Program in Economics, Finance and
Management
The first half of this course was taught by Jaume Ventura.
Since this is an advanced topics course, the goal is
for you to learn how to read and critically evaluate papers. Therefore, I will
teach only the background: the basic models and the most uncontroversial
insights. No more than half of the class will consist of lectures of this type.
In addition, and instead of problem sets, I will assign readings each week (see
below). You need to prepare those before coming to class each week. I will
randomly pick a student to explain each paper. The only thing you need to explain is the main contribution of the
paper and the mechanism behind that, e.g. pointing out one or two equations or
a graph. Then, we will discuss the paper together, trying to evaluate the
importance and credibility of the contribution. Your presentation and
participation in the discussion will count towards your grade, in addition to a
take-home exam.
Readings
Week 6
Lectures:
Labor Market Frictions and the Unemployment Volatility Puzzle
Pissarides (2000). Equilibrium Unemployment Theory
*Rogerson, Shimer and
Wright (2005)
*Shimer (2005)
*Hagedorn and Manovskii (2008)
Week 7
Homework
(February 24): Solutions to the Unemployment Volatility Puzzle
*Mortensen and Nagypal (2007)
*Petrosky-Nadeau (2009)
*Menzio and Shi (2008)
*Brown, Merkl and Snower (2009)
Reiter (2007)
Quadrini and Trigari (2007)
Faccini and de Pace (2009)
Guerrieri (2007)
Other
lectures: RBC, Complete Markets, Search Frictions and the Labor Wedge
*King and Rebelo (1999)
*Shimer (2009). Labor Markets
and Business Cycles (slides), chapters 1-3
Week 8
Homework
(March 2): Empirical Evidence on Wage Rigidity
*Pissarides (2009)
Haefke, Sonntag and van Rens (2008)
Kudlyak (2009)
*Gertler, Huckfelt and Trigari (in progress), see Gertler
and Trigari (2009,
section 5.3.1)
Carneiro, Guimaraes and
Portugal (2009)
Martins, Solon and Thomas (2009)
Hall and Krueger (2008)
*Hagedorn and Manovskii (2009)
*Gnocchi and Pappa (2009)
Other
lecture: Theories of Wage Rigidity and Cyclical Unemployment
*Romer (2006). Advanced Macroeconomics (third edition), chapter 9
Blanchard and Fisher (1989). Lectures on
Macroeconomics, sections 9.1-9.4
Bewley (1999). Why Wages Don’t Fall
During a Recession
*Barro (1977)
*Hall (2005)
Shimer (2009). Labor Markets
and Business Cycles (slides, more slides), chapters 4 and 5
Christoffel, Costain, de Walque, Kuester, Linzert, Millard and Pierrard (2009)
*Michaillat (2010)
Week 9
Homework
(March 9): Endogenous Job Destruction and Cyclicality of Separations
*Shimer (2005)
*Fujita and Ramey (2008)
Hall (2005)
Davis (2005)
Yashiv (2007)
Elsby, Hobijn and Sahin (2009)
Davis, Faberman and Haltiwanger
(2009)
Mortensen and Pissarides (1994)
*Ramey (2008)
Other
lecture: Changes in Labor Market Dynamics
Hall (2007)
Gali and Van Rens (2010)
Champagne and Kurmann (2010)
Nucci and Riggi (2009)
Gordon (in progress)
Stiroh (2009)
Exam
The (take-home) exam will be posted on Sunday March 21
at 10:00 and will be due in my email by 20:00 that day. The readings below were
posted at 18:00 on Monday March 15. You may choose your topic of interest and
only need to read the two papers associated to that topic.
The public
sector and the labor market
Quadrini and Trigari (2007)
Gomes (2009)
Wage
rigidity and unemployment volatility: empirical evidence
Haefke, Sonntag and van Rens (2008)
Kudlyak (2009)
The Great
Moderation and the labor market
Gali and Van Rens (2010)
Champagne and Kurmann (2010)
Readings by
topic
Please suggest any topics or papers that you think
should be added to this list of potential readings!
Cyclicality of the labor wedge
Parkin (1988)
Rotemberg and Woodford (1999)
*Hall (1997)
Mulligan (2002)
*Chari, Kehoe and McGratten (2007)
Elasticity of labor supply
*Petrongolo and Pissarides (2001)
*Rogerson and Wallenius (2007)
Gourio and Noual (2007)
Alternative formulations of the unemployment
volatility puzzle
Costain and Reiter (2008)
*Mortensen and Nagypal (2007)
Farmer and Hollenhorst (2006)
Hornstein, Krusell and Violante (2005)
Yashiv (2006)
*Explanations for the unemployment volatility puzzle
Mortensen and Nagypal (2007)
Reiter (2007)
Quadrini and Trigari (2007)
Menzio and Shi (2008)
Petrosky-Nadeau (2009)
Faccini and de Pace (2009)
Brown, Merkl and Snower (2009)
Heterogeneity
Lilien (1982)
Abraham and Katz (1986)
Shimer (2007)
Pries (2007)
Guerrieri (2007)
Lucas and Prescott (1974)
Alvarez and Shimer (2008)
Guerrieri, Shimer and
Wright (2010)
Bachmann and David. The Importance of Two-Sided Heterogeneity for the
Cyclicality of Labour Market Dynamics
Helpman, Itskhoki and
Redding
Krusell, Mukoyama, Rogerson and Sahin
Bils, Chang and Kim
Inequality
McCall
Lucas and Prescott
Ljungqvist and Sargent (2004). Recursive Macroeconomic Theory (second edition),
chapters 6 and 26
Diamond (1971)
Albrecht and Axel
*Burdett and Mortensen
*Hornstein, Krusell and Violante
*Wage rigidity and cyclical unemployment
Blanchard and Gali (2008)
Gertler and Trigari (forthcoming)
Krause and Lubik (2007)
Rotemberg (2006)
Rudanko
Hall and Milgrom (2008)
Christoffel, Costain, de Walque, Kuester, Linzert, Millard and Pierrard
Michaillat (2010)
*Empirical evidence on wage rigidity
Pissarides (forthcoming)
Haefke, Sonntag and van Rens (2008)
Kudlyak (2009)
Gertler, Huckfelt and Trigari (in progress), see Gertler
and Trigari (2009,
section 5.3.1)
Gnocchi and Pappa (2009)
Martins, Solon and Thomas (2009)
Hall and Krueger (2008)
Hagedorn and Manovskii (2009)
Carneiro, Guimaraes and
Portugal (2009)
Rent sharing
Nickel (1999). Product Markets
and Labour Markets, section 2.3
Blanchflower, Oswald and Sanfey
(1996). Wages, Profits, and Rent-Sharing
Carlsson, Messina and Skans
Empirical evidence on job and worker flows
Davis and Haltiwanger (1990). Gross Job Creation and
Destruction: Micro Evidence and Macro Implications
Davis and Haltiwanger (1999). On
the Driving Forces behind Cyclical Movements in Employment and Job Reallocation
*Shimer (2005). Reassessing the Ins and Outs
of Unemployment
Willis, Cooper and Haltiwanger (2007)
Other
evidence and alternative driving forces
Gali and Rabanal (2004)
Gali, Gertler and Lopez-Salido (2007)
Michelacci and Lopez-Salido (2007)
Michelacci, Canova and Lopez-Salido
(2007)
Balleer (2008)
Barnichon (2008)
Balleer and Van Rens (2010)
Ravn and Simonelli (2007)
*Endogenous job destruction and the cyclicality of the
separation rate
Shimer (2005)
Fujita and Ramey (2008)
Hall (2005)
Davis (2005)
Yashiv (2007)
Elsby, Hobijn and Sahin (2009)
Davis, Faberman and Haltiwanger
(2009)
Mortensen and Pissarides (1994)
Ramey (2008)
Propagation
Cole and Rogerson
Fujita and Ramey (2006)
Changes in
labor market dynamics
Hall (2007)
Gali and Van Rens (2010)
Champagne and Kurmann (2010)
Nucci and Riggi (2009)
Gordon (in progress)
Stiroh (2009)
Assortative Matching
Abowd and Kramartz
Eeckhout
Lopes de Melo
Money search
Kiyotaki and Wright
Trejos and Wright
Kocherlakota
Thijs van Rens |
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