Advanced Macroeconomics

University of Pavia
A.A. 2010-2011

Dr.Silvia Dal Bianco

silvia.dalbianco@eco.unipv.it

Reading List

Consumption

Main references:

Bagliano Fabio Cesare and Bertola Giuseppe (2004): Models for Dynamic Macroeconomics, Oxford
University Press.
Chapter 1: Dynamic Consumption Theory

David Romer (2006): Advanced Macroeconomics, 3rd Edition, McGraw-Hill, New York.
Chapter 7: Consumption, from pag.349-352.

Further Readings

Orazio P. Attanasio and Guglielmo Weber (2009): Consumption and Saving: Models of Intertemporal
Allocation and Their Implications for Public Policy. NBER Working Paper No. 15756.

Growth Theory

1) Growth with exogenous saving rates: The Solow-Swan Model

Main References:

Robert J.Barro and Xavier Sala-i-Martin (1995, 2003): Economic Growth, The MIT Press.
Chapter 1 : Growth Models with exogenous saving rates (Pag. 14-38, 1995 Edition)

N. Gregory Mankiw, David Romer and David N. Weil: A Contribution to the Empirics of Economic
Growth, The Quarterly Journal of Economics, Vol. 107, No. 2 (May, 1992), pp. 407-437

2) Growth with consumer optimization: The Ramsey Model

Main Reference:

Olivier J.Blanchard and Stanley Fisher (1989): Lectures on Macroeconomics. The MIT Press.
Chapter 2: Consumption and Investment, Basic Infinite Horizon Models.
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3) Endogenous Growth:

Main references:

Robert J.Barro and Xavier Sala-i-Martin (1995, 2003): Economic Growth, The MIT Press.
Chapter 1 : Growth Models with exogenous saving rates (Pag. 39-41, 1995 Edition)

Bagliano Fabio Cesare and Bertola Giuseppe (2004): Models for Dynamic Macroeconomics, Oxford
University Press.
Chapter 4: Growth in Dynamic General Equilibrium, especially Pag.151-163.

Further readings:

Endogenous growth mechanisms

Sergio Rebelo (1991): Long-Run Policy Analysis and Long-Run Growth, The Journal of Political
Economy, Vol. 99, No. 3, p.500-521. (Constant returns to capital: AK model)

Robert J. Barro (1990): Government Spending in a Simple Model of Endogeneous Growth, The Journal
of Political Economy Vol. 98, No. 5, Part 2: The Problem of Development: A Conference of the
Institute for the Study of Free Enterprise Systems (Oct., 1990), pp. S103-S125 (Public capital)

Paul M. Romer (1986): Increasing Returns and Long-Run Growth, The Journal of Political Economy,
Vol. 94, No. 5, p.1002-1037. (Learning by doing)

Robert E. Lucas Jr. (1988) : On the Mechanics of Economic Development, The Journal of Monetary
Economics, Vol.22, No.1 (July), p.3-42. (Human capital accumulation)

Endogenous technological change

Robert J.Barro and Xavier Sala-i-Martin (1995): Economic Growth, The MIT Press.
Chapter 6 : Models with expanding variety of products

Robert J.Barro and Xavier Sala-i-Martin (1995): Economic Growth, The MIT Press.
Chapter 7 : Models with improvements in the quality of products

Steve Dowrick & Mark Rogers (2002): Classical and technological convergence: beyond the Solow-
Swan growth model, Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 369-385.
(Technology diffusion and Leader-Followers’ dynamics)

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4) Growth Empirics

Main references:

Growth Accounting

Robert J.Barro and Xavier Sala-i-Martin (1995): Economic Growth, The MIT Press.
Chapter 10.4: Growth Accounting, pp.346-381.

Alwyn Young (1995) The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian
Growth Experience, The Quarterly Journal of EconomicsVol. 110, No. 3 (Aug., 1995), pp. 641-
680

Further readings:

Development Accounting

Francesco Caselli (2005): Accounting for Cross-Country Income Differences, Handbook of Economic
Growth

Growth determinants

Steven Durlauf, and Jonathan Temple (2005) Growth Econometrics, Handbook of Economic Growth

Ross Levine; David Renelt (1992) A Sensitivity Analysis of Cross-Country Growth Regressions,
The American Economic Review, Vol. 82, No. 4. (Sep., 1992), pp. 942-963.

Xavier Sala-i-Martin (1997)"I Just Ran Two Million Regressions", American Economic Review, Vol.
87, n.2, pp. 178-183.

Xavier Sala-i-Martin, Gernot Doppelhofer and Ronald Miller (2004) "Determinants of Long-Term
Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach" American Economic
Review, September 2004

The convergence debate

The Controversy on Convergence in The Economic Journal, Vol. 106, No. 437, Jul., 1996
1. Steven N. Durlauf On The Convergence and Divergence of Growth Rates (pp. 1016-1018)
2. Xavier X. Sala-i-Martin The Classical Approach to Convergence Analysis (pp. 1019-1036)
3. Andrew B. Bernard, Charles I. Jones Technology and Convergence (pp. 1037-1044)
4. Danny T. Quah Twin Peaks: Growth and Convergence in Models of Distribution Dynamics (pp.
1045-1055)
5. Oded Galor Convergence? Inferences from Theoretical Models (pp. 1056-1069)

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Poverty Traps and the Aid Debate

Costas Azariadis, and John Stachurski (2005) Poverty Traps, Handbook of Economic Growth

Craig Burnside and David Dollar (2000), Aid, Policies, and Growth, The American Economic Review,
Vol. 90, No. 4 (Sep., 2000), pp. 847-868

Raghuram G. Rajan and Arvind Subramanian (2005), Aid and Growth: What Does the Cross-Country
Evidence Really Show? IMF WP/05/127

David Roodman (2007) The Anarchy of Numbers: Aid, Development, and Cross-country Empirics,
Center for Global Development, Working Paper #32