12/10: Grades have been posted to Blackboard.
11/7: Correct page numbers assigned for Romer Ch. 2 are pp. 48-76.
10/30: Problem Set #5. Due November 7. Use this spreadsheet to verify 2 propositions Romer makes about the Solow model. The 2 propositions are:
(1) After a 10% shock to the savings rate, it takes about 17 years for y (output per effective unit of labor) to move halfway to its new steady state value.
(2) A 10% increase to the savings rate causes y (output per effective unit of labor) to increase by about 5% once the new steady state is reached.
Just adjust entries in the spreadsheet as needed, print results, and highlight the entries that illustrate these points.
10/25: I have added a handout related to the Fischer model in Chapter 6 Romer. See "Notes on Fischer" on the handouts page.
10/5: Problem Set #4 (re Romer Chapter 6), due October 12:
1. In equation 6.7, it is assumed that the demand elasticity>1. Can you provide a defense of this assumption, at least for the model of imperfect competition developed in section 6.4?
2. Derive the first order conditions (6.41) and (6.42) on page 287.
3. Provide the algebra to go from equation (6.97) on page 321 to equations (6.98) and (6.99) on page 322.
10/4: I am revising the pages to be assigned in Romer Chapter 6. Specifically, I am deleting coverage of 309-315 (this material is new to the third edition and not covered in my handouts). So the assigned pages are:
pp. 271-302
pp. 316-323
pp. 328-333
10/3: The ordering of material in Romer Chapter 6 has changed a bit in the new edition. My handout "6A" still covers the Lucas model that appears at the beginning of Chapter 6. My handout "6B" covers what is now in pp. 285-290 and 316-319. My handout "6C" covers material from pp. 319-323. My handout "6D" covers material from pp. 290-301 in the new edition. I will probably go in order of handouts rather than pages in the new Romer.
9/19: The proper pages to be assigned in the new edition of Romer for Chapter 6 are pp. 271-302, 309--323, and 328-333. We will be progressing through this somewhat slowly -- initially look at pp. 271-280 on the Lucas Model. Note: The entry for 10/4 revises the pages noted here.
9/14: I made a mistake. Problem Set #3 should include problems 2 and 5 on p. 172-3 (I originally listed problems 3 and 5).
9/13: Problem Set #3: Please work problem 3 p. 144, Chapter 7. Also, work problems 2 and 5 p. 172-3, Chapter 8. Due Wednesday, September 21.
9/6: Problem Set #2: Please work problems 3 and 4, p. 131, McCallum, Chapter 6. Due Wednesday, September 14.
8/26: Problem Set #1: Please work problems 2 and 3, p. 107, McCallum, Chapter 5. Due Wednesday, August 31.
8/24: The new edition of Romer is now available!
8/24: Test dates have been added to the syllabus:
Midterm Exam 1 Wednesday September 28
Midterm Exam 2 Wednesday October 26
Final Exam Tuesday December 6 at 2:00 pm
8/13: While not official until we meet for the first class, the course syllabus is now largely complete.
8/11: Textbook(s): The official text is David Romer's Advanced Macroeconomics, 3rd edition, ISBN 0072877308 . This book has NOT yet been released. It is now scheduled to become available in late August. We will not need the book for several weeks, so waiting should not be a problem. However, if you prefer to buy the 2nd edition now, that should be fine -- I doubt that much will differ in the new edition, and I will make sure to document any differences that matter for us.
I recommend that you also purchase a copy of Bennett McCallum's Monetary Economics: Theory and Policy, ISBN 0-02-378471-7. The latter book is out of print, but used copies are available from Amazon at prices around $20.00. I recommend that you buy this now; we will use this early in the semester. You will be assigned several chapters from that book. Another recommendation is Robert Lucas's Studies in Business-Cycle Theory, available from Amazon. You will be assigned several chapters in this book also.
8/10: I am still making changes to the syllabus. The posted syllabus is from 2003; an update will be available soon.