Advanced Macroeconomics

• BLS (2012) “International Comparisons of GDP per Capita and per Hour, 1960–-2011”

• –“ Sala-i-Martin (2006)– The World Distribution of Income: Falling Poverty and ... Convergence, Period

• – World Bank (2014) “World Development Report 2014 (data appendix)

2.2 Theory

• ––Aghion and Howitt (1992) “A Model Of Growth Through Creative Destruction“

• Aghion and Howitt (1998) Endogenous Growth Theory

• Cass (1965) Optimum Growth in an Aggregative Model of Capital Accumulation

• Koopmans (1965) On the Concept of Optimal Economic Growth

• Ramsey (1928) A Mathematical Theory of Saving

• Shell (1966) Toward A Theory of Inventive Activity and Capital Accumulation

• ––Solow (1956) “A Contribution to the Theory of Economic Growth“ (see Aghion Howitt textbook ch 1.)

• –Wälde (1999) A Model of Creative Destruction with Undiversi able Risk and Optimising Households

• ––Wälde (2012) “Applied Intertemporal Optimization” (ch 5.6.3)

2.3 A growth model with dual selfs

• Akerlof (2002) “Behavioral Macroeconomics and Macroeconomic Behavior

• Camerer and Loewenstein (2004) “Behavioral Economics: Past, Present, Future

• Fudenberg (2006) “Advancing beyond Advances in behavioral economics”

• Fudenberg and Levine (2006) “A Dual Self Model of Impulse Control“?

• Rabin (2013) “Incorporating Limited Rationality into Economics”

• Rabin (2013) “An Approach to Incorporating Psychology into Economics”

3 Business cycles

3.1 Some numbers on business cycles

• Eurocoin (2014)

• GDP per capita OECD countries 1980 - 2010

• Jones (1995) “Time series test of endogenous growth models ”( g. I)

• Marczak and Beisinger (2013) “Real wages and the business cycle in Germany”

• NBER’s Business Cycle Dating Committee (2010)

• Schirwitz (2009) “A comprehensive German business cycle chronology”

• Wälde and Woitek (2004) “R&D expenditure in G7 countries and the implications for endogenous fluctuations and growth”

3.2 The real business cycle approach

• Kydland and Prescott (1980) “A Competitive Theory of Fluctuations and the Feasibility and Desirability of Stabilization Policy“

• Kydland and Prescott (1982) “Time to Build and Aggregate Fluctuations“

• Wälde (2012) “Applied Intertemporal Optimization“ (ch. 8.1)

3.3 Natural volatility

• Francois and Lloyed-Ellis (2003) Animal Spirits Trough Creative Destruction
• Wälde (2005) “Endogenous Growth Cycles“
• Wälde (2005) “Introduction to natural volatility”

3.4 Anticipatory emotions and business cylces

• Caplin Leahy (2004) “Psychological Expected Utility Theory And Anticipatory Feelings

• Loomes and Sugden (1982) “Regret Theory: An Alternative Theory of Rational Choice under Uncertainty“

• Loomes and Sugden (1986) “Disappointment and Dynamic Consistency in Choice under Uncertainty“

• Wälde (2014) “Stress and Coping: An Economic Approach”

4 Unemployment

4.1 Facts about unemployment

• Krebs and Scheffel (2013) Macroeconomic Evaluation of Labor Market Reform in Germany
• Launov and Wälde (2012) Slides for Estimating incentive and welfare effects of non-stationary unemployment benefi ts

• OECD (2011) Persistence of high unemployment: what risks? what policies?

• Reinberg and Hummel (2005) “Höhere Bildung schützt auch in der Krise vor Arbeitslosigkeit”

• DESTATIS (2012) “Beruf, Ausbildung und Arbeitsbedingungen der Erwerbstätigen in Deutschland”

4.2 Traditional theories of unemployment

• Akerlof (1982) Labor Contracts as Partial Gift Exchange

• Akerlof and Yellen (1988) “Fairness and Unemployment”

• Cahuc and Zylberberg (2004) Labor Economics

• Shapiro and Stiglitz (1984) Equilibrium Unemployment as a Worker Discipline Device

• Solow (1979) “Another Possible Source of Wage Stickiness”

• Donado and Wälde (2012) “How Trade Unions Increase Welfare”

4.3 The search and matching approach

• Burdett and Mortensen (1998) “Wage Differentials, Employer Size, and Unemployment”

• Moen (1997) “Competitive search equilibrium”

• Pissarides (1985) “Short-run Equilibrium Dynamics of Unemployment Vacancies, and Real Wages

• Rogerson, Shimer and Wright (2005) “Search-Theoretic Models of the Labor Market: A Survey”

4.4 Behavioural views on unemployment

• Akerlof and Yellen (1988) “Fairness and Unemployment”

• DellaVigna and Paserman (2005) “Job search and impatience”

• O’Donoghue and Rabin (1999) “Doing it Now or Later”

• Paserman (2008) “Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation“

4.5 How to reduce unemployment without creating poverty

• Chetty, Friedman and Saez (2013), “Using Differences in Knowledge across Neighborhoods to Uncover the Impacts of the EITC on Earnings”

• Golosov, Maziero and Menzio (forthcoming) “Taxation and Redistribution of Residual Income Inequality”

• Heckman (2006) “Skill Formation and the Economics of Investing in Disadvantaged Children”

• Lingens and Wälde (2009) “Pareto-Improving Unemployment Policies”

• Moffitt (2003) “The Negative Income Tax and the Evolution of U.S. Welfare Policy”

• Saez (2002) “Optimal Income Transfer Programs: Intensive versus Extensive Labor Supply Responses

5 Conclusion: What did we learn?

A detailed list of references is in the syllabus.