2001-2002
2nd Quarter
MPSE
 
 

0. TEXTBOOKS
Pissarides, C. (1990) Equilibrium Unemployment Theory, 2nd edition, MIT Press, 1998
Davis,-Steven-J.; Haltiwanger,-John-C.; Schuh,-Scott, Job creation and destruction, Cambridge and London: MIT Press, 1996, pages xxii, 260.
John B. Taylor and Michael Woodford, Handbook of Macroeconomics, North Holland, 2000
Ronald W. Jones and Peter B. Kenen, Handbook of International Economics, North Holland
Obstfeld and Rogoff, Foundations of International Economics, MIT Press
Alesina, A., G. Cohen, and N. Roubini, Political cycles and the macroeconomy, MIT Press, 1997
Cukierman, Alex, Central bank strategy, credibility, and independence:  Theory and evidence  Cambridge, Mass. and London: MIT Press, 1995.
B. Kahin and Hal Varian, eds., Internet Publishing and Beyond: The Economics of Digital Information and Intellectual Property, MIT Press
Aaron,-Henry-J., ed. Behavioral dimensions of retirement economics. Washington, D.C.:  Brookings Institution Press;  New York:  Russell Sage Foundation, 1999.
 
 
 
 
 
 
 

Pissarides, C. (1990) Equilibrium Unemployment Theory, 2nd edition, MIT Press, 1998
Mortensen, D. and  C. Pissarides, (1994) "Job Creation and Job Destruction in the Theory of Unemployment", Review of Economic Studies; 61(3),  pages 397-415.
Davis, S. and J. Haltiwanger (1992), "Gross Job Creation, Gross Job Destruction, and Employment Reallocation", Quarterly Journal of Economics; 107(3),  pages 819-63.
Jackman, Pissarides, and Savvouri (1990), "Labour Market Policies and Unemployment in the OECD"  Economic Policy: 5(2), October 1990, 449-90.
Blanchard, O. and P.A. Diamond (1989), "The Beveridge Curve"  Brookings Papers on Economic Activity; 0(1), 1989, pages 1-60.
Yashiv, E. "The determinants of equilibrium unemployment", American Economic Review, 2000

II. CREDIBILITY
 

II.1 THEORY
Kydland, Finn E.; Prescott, Edward C. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans.", Journal of Political Economy; 85(3), June 1977, pages 473-91.
Barro, Robert J.; Gordon, David B. "A Positive Theory of Monetary Policy in a Natural Rate Model",  Journal of Political Economy; 91(4), August 1983, pages 589-610.
Backus, David; Driffill, John, "Inflation and Reputation"  American Economic Review; 75(3), June 1985, pages 530-38.
Rogoff, Kenneth, "The Optimal Degree of Commitment to an Intermediate Monetary Target" Quarterly Journal of Economics; 100(4), November 1985, pages 1169-89.
Giavazzi, Francesco; Pagano, Marco, "The Advantage of Tying One's Hands:  EMS Discipline and Central Bank Credibility",  European Economic Review; 32(5), June 1988, pages 1055-75.
Drazen, A. and Masson, P., " Credibility of Policies versus Credibility of Policymakers", Quarterly Journal of Economics; 109(3), August 1994, pages 735-54.
 
 

II.2 POLITICS
Alesina, Alberto, "Macroeconomic Policy in a Two-Party System as a Repeated Game",  Quarterly Journal of Economics; 102(3), August 1987, pages 651-78.
Hibbs, Douglas, The political economy of industrial democracies, Cambridge, Mass. and London: Harvard University Press, 1987.
Tabellini, Guido; Alesina, Alberto, "Voting on the Budget Deficit" American Economic Review; 80(1), March 1990, pages 37-49.
Persson, T. and L.E.O. Svensson "Why would a stubborn conservative run a deficit...", Quarterly Journal of Economics, 1989
Rogoff, Kenneth; Sibert, Anne, "Elections and Macroeconomic Policy Cycles" Review of Economic Studies; 55(1), January 1988, pages 1-16.
Velasco, A. "The common property approach to fiscal policy", in M. Tommasi and F. Sturzenegger, eds., The Political Economy of Reform, MIT Press, 1997
 

II.3 EVIDENCE
Alesina, A., G. Cohen, and N. Roubini, Political cycles and the macroeconomy, MIT Press, 1997
Cukierman, Alex, Central bank strategy, credibility, and independence:  Theory and evidence  Cambridge, Mass. and London: MIT Press, 1995.
Weber, Axel,  "The Role of Policymakers' Reputation in the EMS Disinflations: An Empirical Evaluation", European Economic Review; 36(7), October 1992, pages 1473-92.

III. RECENT DEVELOPMENTS IN INTERNATIONAL ECONOMICS

III-I CURRENCIES AND CRISES
Krugman, P., "A model of balance of payments crises", Journal of Money, Credit and Banking, 11, 1979, 311-25
Flood, R.P. and P.M. Garber, "Collapsing exchange rates regimes: some linear examples", Journal of International Economics, 17, 1984, 1-13
Obstfeld, M. "Models of currency crises with self-fulfilling features", European Economic Review, 40, 1996
Bensaid, B.  and O. Jeanne, "The instability of fixed exchange rate regimes when raising the nominal rate is costly", European Economic Review, 1997

III-2 FINANCIAL ASPECTS OF CURRENCY CRISES
Diamond, D. and Dybvig, P. "Bank runs, deposit insurance, and liquidity", Journal of Political Economy,  91, 401-19
Velasco, A., "Financial crises and balance of payments crises", Journal of Development Economics, October 1987
Sachs, J., A. Tornell and A. Velasco, "Financial crises in emerging markets: the lessons from 1995", Brookings papers on economic activity, 1996
-------------------------------------, "The collapse of the Mexican Peso: What have we learned?", Economic Policy, 1996
Corsetti, G.C., Pesenti, P. and N. Roubini, "What caused the Asian currency and financial crisis ?, Part I: a macroeconomic overview", http://www.stern.nyu.edu/globalmacro/AsianCrisis.pdf
Chang, R. and A. Velasco, "Financial Fragility and the exchange rate regime", NBER WP 6469
Kaminsky, G. and C. Reinhart, "The twin crises: causes of banking and balance of payments problems", American Economic Review, June 1999

III-3 MICROFOUNDATIONS OF MUNDELL FLEMMING
Krugman, P. "It's Baaack: Japan's Slump and the Return of the Liquidity Trap", Brookings Papers on Economic Activity, 1998, http://brookings.nap.edu/books/0815711956/html/137.html#pagetop
Corsetti,-Giancarlo; Pesenti,-Paolo, "Welfare and Macroeconomic Interdependence" Quarterly-Journal-of-Economics; 116(2), May 2001, pages 421-45.
Obstfeld,-Maurice; Rogoff,-Kenneth, "Exchange Rate Dynamics Redux" Journal-of-Political-Economy; 103(3), June 1995, pages 624-60.
 
 
 
 

IV. THE NEW ECONOMY

IV-1: COMPUTERS AND THE RETURNS TO SKILLS
Krusell, P., L. Ohanian, J.V. Rios-Rull, G. Violante, "Capital-skill complementarity and inequality", Econometrica, 2000
Bresnahan, T., E. Brynjolfson, and L.M.Hitt, "Information technology, workplace organization, and the demand for skilled labor",  NBER WP 7136, May 1999
Zeira, J., "Workers, machines, and economic growth", Quarterly Journal of Economics, 1998
Krueger, Allan (1993), ''Have computers changed the wage structure?'', Quarterly Journal of Economics
Autor, David, Lawrence Katz, and Alan Krueger, ''Computing Inequality: Have Computers Changed the Labor Market?'' Quarterly Journal of Economics;
113(4), 1169-1213.
Doms, Mark, Timothy Dunne, and Kenneth R. Troske (1997), ''Workers, Wages and Technology'', Quarterly Journal of Economics, 112, 1, 253-290
Entorf, Horst, Michel Gollac, and Francis Kramarz (1999), ''New Technologies, Wages, and Worker Selection'', Journal of Labor Economics, 17, 3, 1999.
Mishel, Lawrence and Jared Bernstein (1994), ''Is the technology black box empty? An empirical examination of the impact of technology on wage inequality and the employment structure'',Economic Policy Institute WP \#217, 1994. [http://www.lights.com/epi/virlib/Technical/1994/isthetechnology.PDF]
Howell, David R., Margaret Duncan and Bennett Harrison (1998), ''Low wages in the US and high unemployment in Europe: A critical assessment of the conventional wisdom'', Center of Economic Policy Analysis working paper \#5, 1998.
Autor, David, Levy, Frank, and Murnane, "The skill content of recent technological change: an empirical exploration", MIT working paper, June 2001
 

IV-2: COMPETING TECHNOLOGIES MODELS
Beaudry, Paul and David Green, "Wages and employment in the US and Germany: What explains the difference ?", mimeo, U. British Columbia
Acemoglu, D. "Why do new technologies complement skills? Directed technical change and wage inequality", Quarterly Journal of Economics, Nov. 1998
-------------, "Changes in unemployment and wage inequality: an alternative theory and some evidence", American Economic Review, Dec. 1999
Caselli, F. "Technological Revolutions", American Economic Review, March 1999
 

IV-3: VINTAGE EFFECTS, GROWTH, AND PRODUCTIVITY SLOWDOWN
Greenwood, J. and B. Jovanovic, "The IT revolution and the stock market", American Economic Review, May 1999
Greenwood, J. and M. Yorukoglu, "1974", Carnegie-Rochester Conference Series on Public Policy, 1997
Hobijn, B. and B. Jovanovic, "The IT revolution and the stock market: evidence", NBER WP 7684, May 2000
Jorgenson, Dale, "Information technology and the U.S. Economy", American Economic Review, 2001
 

IV-4: OPEN SOURCE, PROPERTY RIGHTS AND NEW AGE ECONOMICS
Saint-Paul, G. "Growth effects of non proprietary innovation", working paper, 2001
-------------- "Distribution and growth in an economy with limited needs", working paper, 2001
De Long,  J.B., and A.M. Froomkin, "Speculative Microeconomics for Tomorrow's Economy",  http://www.j-bradford-delong.net/; in B. Kahin and Hal Varian, eds., Internet Publishing and Beyond: The Economics of Digital Information and Intellectual Property
Raymond, Eric S. The Cathedral and the Bazaar, http://www.tuxedo.org/~esr/writings/cathedral-bazaar
--------------------- Homesteading in the noosphere, http://www.tuxedo.org/~esr/writings/cathedral-bazaar
Lerner, Josh and Jean Tirole, "The simple economics of open source", mimeo, Harvard Business School, 2000
 

IV-5: SPAN OF CONTROL AND SUPERSTARS
Rosen, Sherwin (1981), ''The Economics of Superstars'', American Economic Review; 71(5), 845-58.
Rosen, Sherwin (1982), ''Authority, Control, and the Distribution of Earnings" Bell Journal of Economics; 13(2), 311-23.
Saint-Paul, G. "On the distribution of income and worker assignment under intra-firm spillovers, with an application to ideas and networks", Journal of Political Economy, 2001
--------------"Information technologies and the knowledge elite", working paper, 2001
Cooley, T. and M. Yorukoglu, " The New Economy : Some Macroeconomic Implications of an Information Age," mimeo, NYU, http://www.stern.nyu.edu/~tcooley/WorkingPapers/Newecon.pdf

 
V-PSYCHOLOGY AND CONSUMPTION BEHAVIOR

Laibson, D., "Golden eggs and hyperbolic discounting", Quarterly Journal of Economics, 1997
------------, "Hyperbolic discount functions, undersaving, and savings policy", NBER Working paper 5635, 1996
Laibson, Repetto, Tobacman, "Self-control and saving for retirement", Brookings papers on economic activity, 1998
Harris, C.  and D. Laibson, "Dynamic choices of hyperbolic consumers", Econometrica, 2001
 Aaron,-Henry-J., ed. Behavioral dimensions of retirement economics. Washington, D.C.:  Brookings Institution Press;  New York:  Russell Sage Foundation, 1999.
Diamond,-Peter; Koszegi,-Botond, "Quasi-Hyperbolic Discounting and Retirement" Massachusetts Institute of Technology, Department of Economics Working Paper: 00/03, January 2000