Teaching‎ > ‎

Macro PhD

This webpage is for the first half of the course "Macroeconomics and Monetary Policy." The second part is taught by Prof. Alok Johri
Grading of this half course consists of: 50% term paper, 30% a presentation, and 20% class participation/assignments. Similar rules apply to the second part.
The course will cover some key papers on the literature of firm dynamics and policy distortions. The material is always given in class.

Tentative schedule (subject to change)


9/16: 
Lucas, 1978: “On the size distribution of business firms”, The Bell Journal of Economics, 9(2)

Related papers: 
Evans and Jovanovic, 1989: “An estimated model of entrepreneurial choice under liquidity constraints”, JPE 
Garicano, 2000: “Hierarchies and the Organization of Knowledge in Production” JPE 
Garicano and Rossi-Hansberg, 2006: “Organization and Inequality in a Knowledge Economy,” QJE 
Grobovsek, 2012: “Management and Aggregate Productivity”, wp 

9/23: 
Lucas'78 Matlab code
Hopenhayn, 1992: “Entry, Exit, and Firm Dynamics in Long Run Equilibrium”, Econometrica, 60(5)

Related papers:
Jovanovic, 1982: “Selection and the Evolution of Industry”, Ecma
Hopenhayn and Rogerson, 1993: “Job turnover and policy evaluation: A general equilibrium analysis”, JPE
Hopenhayn, 2011: “Firm Microstructure and Aggregate Productivity”, JMCB
Melitz, 2003: “The Impact Of Trade On Intra-Industry Reallocations And Aggregate Industry Productivity," Ecma

(If there is time on the 9/23) Luttmer 2007: “Selection, Growth, and the Size Distribution of Firms,” The Quarterly Journal of Economics, 122(3)

Related papers:
Luttmer, 2010: "Models of Growth and Firm Heterogeneity," Annual Review of Economics 


9/30:
Finish Hopenhayn'92
Rogerson and Resutccia 2008: “Policy Distortions and Aggregate Productivity with Heterogeneous Plants” Review of Economic Dynamics, 11(4) 

10/7:
Guner, Ventura and Xu, 2008: “Macroeconomic Implications of Size-Dependent Policies”, Review of Economic Dynamics, 11(4) 
Guner, Ventura, Gustavo and Xu, 2006: "How costly are restrictions on size?," Japan and the World Economy, 18(3) 
Hsieh and Klenow, 2009: "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, 124(4) 


Related Papers to 9/30 and 10/7:
Hsieh and Klenow, 2012: “The Life Cycle of Plants in India and Mexico” wp 
Bhattacharya, Guner and Ventura, 2013: "Distortions, Endogenous Managerial Skills and Productivity Differences," RED 
Adamopoulos and Restuccia, 2012: "Land Reform and Productivity: A Quantitative Analysis with Micro Data” wp  
Restuccia and Rogerson, 2013: "Misallocation and productivity," RED 
Garcia-Santana, 2013: "Foreign Firms, Distribution of Income, and the Welfare of Developing Countries" wp

10/14  Thanksgiving

10/21  Prof. Sosa-Padilla's class

10/28: Presentations by students (check this writing bu Prof. Kehoe from the University of Minnesota about how to prepare a talk)
Muhebullah Karimzada: Bhattacharya, Guner and Ventura, 2013, "Distortions, Endogenous Managerial Skills and Productivity Differences," RED
Saeed-ur-Rehman Rana: Evans and Jovanovic, 1989, "An estimated model of entrepreneurial choice under liquidity constraints," JPE
Shaun Shaikh: Grobovsek, 2012: “Management and Aggregate Productivity”, wp 
Mahbub Rahman: Gabler and Poschke, 2012, "Experimentation by Firms, Distortions, and Aggregate Productivity," wp
Waheed Olagunju: Garcia-Santana, 2013, "Foreign Firms, Distribution of Income, and the Welfare of Developing Countries" wp

11/30: Final date to submit the term paper