[Forside] [Hovedområder] [Perioder] [Udannelser] [Alle kurser på en side]
LEARNING OBJECTIVES:
The aim is that the student through this course becomes able to:
COURSE DESCRIPTION:
This course provides an introduction to formal macroeconomic models within a broadly behavioral and structuralist tradition. The models build on Keynesian and neo-Marxian theory as well as more recent developments in ‘behavioral economics'. A variety of topics will be covered, including business cycles, NAIRU theory, economic growth, and uneven development.
COURSE SUBJECT AREAS:
Preliminary course outline and readings:
1. Introduction (1-2 weeks)
Readings:
• Akerlof (2007)
• Dutt and Skott (2006)
• Kahneman (1994)
• Kirman (1992)
• Lucas (1976)
• Rabin (1998
2. The stability problem (1 week)
The (in-) stability of full employment
Readings:
• Keynes (1936)
• Tobin (1975)
3. Full employment, the reserve army and the NAIRU (2-3 weeks)
a. Fragility of standard theory
b. Money illusion
c. Hysteresis
d. Institutional issues
Readings:
• Akerlof and Yellen (1990)
• Akerlof et al. (1996)
• Howell et al. (2007)
• Shafir et al. (1997)
• Skott (1997)
• Skott (2005)
• Solow (1990)
4. Wage inequality, overeducation and power-biased technological change (1-2 weeks)
Readings:
• Autoret al. (2008)
• Guy and Skott (2008)
• Skott and Slonimczyk (2009)
5 Growth cycles and the long run (3-4 weeks)
a. stagnationist models
b . growth cycles in Harrodian and classical models
c. structural liquidity traps and policy in the long run
d. Minskian long waves
Readings:
• Dutt (1984)
• Goodwin (1967)
• Nakatani and Skott (2007)
• Ryoo (2009)
• Skott (1989)
• Skott and Zipperer (2009)
6. Cumulative causation and uneven development (2 weeks)
Readings:
• Krugman (1987)
• Murphy et al. (1989)
• Skott and Larudee (1998)
7. Summary and discussion (1 week)
Peter Skott
TEACHING METHOD: Lectures (4 weekly lectures for 12 weeks), and optional take-home exercises
English
Akerlof, G.A. (2007) "The Missing Motivation in Macroeconomics". American Economic Review, 5-36.
Akerlof, G.A. and Yellen, J.L. (1990) "The fair wage-effort hypothesis and unemployment". Quarterly Journal of Economics, 255-283.
Akerlof, G.A., Dickens, W.T. and Perry, G.L. (1996) "The macroeconomics of low inflation". Brookings Paperson Economic Activity, 1:1996, 1-75.
Autor,D., Katz,L. and Kearney, M. (2008) "Trends in U.S. Wage Inequality: Revising the Revisionists". Review of Economics and Statistics, 90(2), pp. 300-323.
Dutt, A.K. (1984) "Stagnation, income distribution and monopoly power". Cambridge Journal of Economics, 8, pp. 25-40.
Dutt, A.K. and Skott, P. (2006) "Keynesian Theory and the AD-AS Framework: A Reconsideration". In C. Chiarella, P. Flaschel, R. Franke and W. Semmler (eds) Quantitative and Empirical Analysis of Nonlinear Dynamic Macromodels, Elsevier, 2006, pp. 149-172.
Goodwin, R.M. (1967) "A Growth Cycle". In C.H. Feinstein (ed.) Socialism, Capitalism and Growth (CUP).
Guy, F. and Skott, P. (2008) "Information and communications technologies, coordination and control, and the distribution of income". Journal of Income Distribution, 17, pp. 71-92.
Howell, D.R., Baker, D., Glyn, A. and Schmitt, J. (2007) "Are Protective Labor Market Institutions at the Root of Unemployment? A Critical Review of the Evidence". Capitalism and Society
Volume 2, Issue, Article 1
Kahneman, D. (1994) "New Challenges to the Rationality Assumption". Journal of Institutional and Theoretical Economics, pp. 18-36.
Keynes, J.M. (1936) The General Theory of Employment, Interest and Money, Macmillan, chapters 1-3 & 19.
Kirman, A.P. (1992) "Whom or what does the representative individual represent?" Journal of Economic Perspectives, Vol 6, 117-136
Krugman, P. (1987) "The Narrow Moving Band, the Dutch Disease, and the Competitive Consequences of Mrs. Thatcher". Journal of Development Economics, 41-55.
Lucas, R. E. Jr. (1976). "Econometric Policy Evaluation: A Critique," in The Phillips Curve and the Labor Markets, ed. K. Brunner and A. Melzer, Carnegie-Rochester Conference Series on Public Policy, 1: 19-46.
Murphy, K.M., Shleifer, A. and Vishny, R.W. (1989) "Industrialization and the Big Push". Journal of Political Economy, 1003-1026.
Nakatani, T. and Skott, P. (2007) "Japanese growth and stagnation: A Keynesian perspective". Structural Change and Economic Dynamics, 306-332.
Rabin, M. (1998) "Psychology and Economics". Journal of Economic Literature, 11-46.
Ryoo, S. (2009) "Long waves and short cycles in a model of endogenous financial fragility". Working Paper 2009-03, University of Massachusetts Amherst.
Shafir, E., Diamond, P. and Tversky, A. (1997) "Money illusion". Quarterly Journal of Economics, 341-374.
Skott, P. (1989) "Effective Demand Class Struggle and Cyclical Growth", International Economic Review, 231-47.
Skott, P. (1997) "Stagflationary consequences of prudent monetary policy in a unionized economy". Oxford Economic Papers, 341-374.
Skott, P. (2005) "Fairness as a source of hysteresis in employment and relative wages". Journal of Economic Behavior and Organization, 305-331.
Skott, P. and Larudee, M. (1998) "Uneven Development and the Liberalization of Trade and Capital Flows", Cambridge Journal of Economics, 277-295.
Skott, P. and Slonimczyk, F. (2009) "Employment and Distribution Effects of Changes in the Minimum Wage". Mimeo.
Skott, P. and Zipperer, B. (2009) "Dynamic patterns of accumulation and income distribution". Mimeo (forthcoming in Japanese in Kikan Keizai-Riron ).
Solow, R.M. (1990) The Labor Market as a Social Institution (chapter 1). Blackwell
Tobin, J. (1975) "Keynesian model of recession and depression", American Economic Review, 195-202
Lecture notes and additional articles (max 100 pages).
FORM OF ASSESSMENT: Written 4-hour exam
EXAMINATION AIDS ALLOWED: All - except any kind of electronic communication including calculators, mobile phones and PCs.
