Applied Macroeconomics
Instructor: Rahul Giri
Lecture Location: Salon 105, Santa Teresa
Day/Time: Monday 8:00am - 11:00am
Office Hours: Monday & Wednesday, 2:30pm – 3:30pm, or by appointment
Office Location: Centro de Investigación (CIE), ITAM, Santa Teresa
E-mail: rahul.giri@itam.mx
Lecture Location: Salon 105, Santa Teresa
Day/Time: Monday 8:00am - 11:00am
Office Hours: Monday & Wednesday, 2:30pm – 3:30pm, or by appointment
Office Location: Centro de Investigación (CIE), ITAM, Santa Teresa
E-mail: rahul.giri@itam.mx
Syllabus - click here.
Textbooks
The following books are suggested as supplements to the lecture notes:
1. BSM - “Economic Growth,” Robert J. Barro & Xavier Sala-i-Martin, 2nd ed., The MIT Press.
2. DR - “Advanced Macroeconomics,” David Romer, 3rd ed., McGraw Hill Irwin.
3. BH - “Modern Macroeconomics,” Ben J. Heijdra, 2nd ed., Oxford University Press.
1. BSM - “Economic Growth,” Robert J. Barro & Xavier Sala-i-Martin, 2nd ed., The MIT Press.
2. DR - “Advanced Macroeconomics,” David Romer, 3rd ed., McGraw Hill Irwin.
3. BH - “Modern Macroeconomics,” Ben J. Heijdra, 2nd ed., Oxford University Press.
Some Interesting Reading
Lecture Notes
0. Primer
1) Some History
2) National Income Accounting
- Introduction
- Primer on accounting framework
- Details on Measuring GDP
3) Some Data
- Differences in GDP per capita across countries
I. Models of Exogenous Growth – Theory and Data
1) Model with Exogenous Savings: Solow-Swan
- Lecture Notes (DR - Chapter 1; BSM – Chapter 1; BH – Chapter 13)
2) Taking the Solow Model to Data: Growth Accounting and Growth Regressions
- (BSM – Chapter 10, 12)
- Daron Acemoglu's Slides
- Important background papers for Daron Acemoglu's Slides:
- Mankiw, N.G., D. Romer, and D. N. Weil (1992),"A Contribution to the Empirics of Economic Growth," Quarterly Journal of
Economics 107(2):407-437.
- Klenow, Peter J., and Andrés Rodríguez-Clare (1997), “The Neoclassical Revival in Growth Economics: Has It Gone Too Far?,”
NBER Macroeconomics Annual, 73-102. (My slides on the paper)
- Robert E. Hall and Charles I. Jones (1999), "Why Do Some Countries Produce So Much More Output Per Worker Than
Others?," The Quarterly Journal of Economics, Vol. 114, No. 1 (Feb., 1999), pp. 83-116. (My slides on the paper)
- Robert Barro's Slides
3) Proximate Causes of Growth: What is Missing?
- Caselli, Francesco (2005), “The Missing Input: Accounting for Cross-Country Income Differences,” in P.Aghion and S. Durlauf, eds., Handbook of Economic Growth, North-Holland.
- Presentation on Caselli (2005)
4) Model with Endogenous Savings: Ramsey-Cass-Koopmans and Diamond
- Lecture Notes (DR - Chapter 2; BSM – Chapter 2; BH – Chapter 13)
- Calibration of the Optimal Growth Model (from Timothy Kehoe's Notes)
- Overlapping Generations Lecture Notes (NOT INCLUDED THIS YEAR)
II. Models of Endogenous Growth – Theory and Data
- Lecture Notes (DR - Chapter 3; BSM – Chapter 4, 5; BH – Chapter 14)
- Lucas, Robert E., Jr. (1988), "On the Mechanics of Economic Development," Journal of Monetary Economics 22, no. 1, July, pp: 3-
42. (read for homework 4)
- Jones, Charles I. (2002), "Sources of U.S. Economic Growth in a World of Ideas," American Economic Review, Vol. 92 (1), pp. 220-239. (My slides on the paper)
III. Thinking Beyond the Standard Models
- Acemoglu, Daron, Simon Johnson and James Robinson (2005), “Institutions as a Fundamental Cause of Long-Run Growth,” in P.
Aghion and S. Durlauf, eds., Handbook of Economic Growth, North-Holland.
- Mokyr, Joel (2005), “Long-Term Economic Growth and the History of Technology,” in P. Aghion and S. Durlauf, eds., Handbook of
Economic Growth, North-Holland.
- Jovanovic, Boyan and Rousseau, Peter L., “General Purpose Technologies,” in P. Aghion and S. Durlauf, eds., Handbook of
Economic Growth, North-Holland.
- Hanushek, Eric and Ludger Woessmann (2008), "The Role of Cognitive Skills in Economic Development", Journal of Economic
Literature 46(3), September, pp. 607-668.
- Banerjee, Abhijit, and Esther Duflo (2005), “Growth Theory through the Lens of Development Economics,” in P. Aghion and S.
Durlauf, eds., Handbook of Economic Growth, North-Holland.
IV. The Case of Mexico
- Hanson, Gordon (2010), “Why Isn’t Mexico Rich?,” Journal of Economic Literature, 48:4, 987–1004.
1) Some History
2) National Income Accounting
- Introduction
- Primer on accounting framework
- Details on Measuring GDP
3) Some Data
- Differences in GDP per capita across countries
I. Models of Exogenous Growth – Theory and Data
1) Model with Exogenous Savings: Solow-Swan
- Lecture Notes (DR - Chapter 1; BSM – Chapter 1; BH – Chapter 13)
2) Taking the Solow Model to Data: Growth Accounting and Growth Regressions
- (BSM – Chapter 10, 12)
- Daron Acemoglu's Slides
- Important background papers for Daron Acemoglu's Slides:
- Mankiw, N.G., D. Romer, and D. N. Weil (1992),"A Contribution to the Empirics of Economic Growth," Quarterly Journal of
Economics 107(2):407-437.
- Klenow, Peter J., and Andrés Rodríguez-Clare (1997), “The Neoclassical Revival in Growth Economics: Has It Gone Too Far?,”
NBER Macroeconomics Annual, 73-102. (My slides on the paper)
- Robert E. Hall and Charles I. Jones (1999), "Why Do Some Countries Produce So Much More Output Per Worker Than
Others?," The Quarterly Journal of Economics, Vol. 114, No. 1 (Feb., 1999), pp. 83-116. (My slides on the paper)
- Robert Barro's Slides
3) Proximate Causes of Growth: What is Missing?
- Caselli, Francesco (2005), “The Missing Input: Accounting for Cross-Country Income Differences,” in P.Aghion and S. Durlauf, eds., Handbook of Economic Growth, North-Holland.
- Presentation on Caselli (2005)
4) Model with Endogenous Savings: Ramsey-Cass-Koopmans and Diamond
- Lecture Notes (DR - Chapter 2; BSM – Chapter 2; BH – Chapter 13)
- Calibration of the Optimal Growth Model (from Timothy Kehoe's Notes)
- Overlapping Generations Lecture Notes (NOT INCLUDED THIS YEAR)
II. Models of Endogenous Growth – Theory and Data
- Lecture Notes (DR - Chapter 3; BSM – Chapter 4, 5; BH – Chapter 14)
- Lucas, Robert E., Jr. (1988), "On the Mechanics of Economic Development," Journal of Monetary Economics 22, no. 1, July, pp: 3-
42. (read for homework 4)
- Jones, Charles I. (2002), "Sources of U.S. Economic Growth in a World of Ideas," American Economic Review, Vol. 92 (1), pp. 220-239. (My slides on the paper)
III. Thinking Beyond the Standard Models
- Acemoglu, Daron, Simon Johnson and James Robinson (2005), “Institutions as a Fundamental Cause of Long-Run Growth,” in P.
Aghion and S. Durlauf, eds., Handbook of Economic Growth, North-Holland.
- Mokyr, Joel (2005), “Long-Term Economic Growth and the History of Technology,” in P. Aghion and S. Durlauf, eds., Handbook of
Economic Growth, North-Holland.
- Jovanovic, Boyan and Rousseau, Peter L., “General Purpose Technologies,” in P. Aghion and S. Durlauf, eds., Handbook of
Economic Growth, North-Holland.
- Hanushek, Eric and Ludger Woessmann (2008), "The Role of Cognitive Skills in Economic Development", Journal of Economic
Literature 46(3), September, pp. 607-668.
- Banerjee, Abhijit, and Esther Duflo (2005), “Growth Theory through the Lens of Development Economics,” in P. Aghion and S.
Durlauf, eds., Handbook of Economic Growth, North-Holland.
IV. The Case of Mexico
- Hanson, Gordon (2010), “Why Isn’t Mexico Rich?,” Journal of Economic Literature, 48:4, 987–1004.
Homeworks
Homework 1 - National Income Accounting
- Penn World Table 7.1 variable list with description
- Solution to Homework 1
Homework 2 - Exogenous Growth Models I (due in class on 29th Sep, 2014)
- Solution to Homework 2
Homework 3 - Exogenous Growth Models (due in class on 13th Oct, 2014 )
- Solution to Homework 3
Homework 4 - Endogenous Growth Models (due in class on 25th Nov, 2014)
- Solution to Homework 4
- Penn World Table 7.1 variable list with description
- Solution to Homework 1
Homework 2 - Exogenous Growth Models I (due in class on 29th Sep, 2014)
- Solution to Homework 2
Homework 3 - Exogenous Growth Models (due in class on 13th Oct, 2014 )
- Solution to Homework 3
Homework 4 - Endogenous Growth Models (due in class on 25th Nov, 2014)
- Solution to Homework 4
Exams
Midterm - Fall 2013
Solution to midterm - Fall 2013
Solution to midterm - Fall 2013