Syllabus of the course
Starting day: 10 Mar 2016
Instructors: Prof. Fabio Cerina, Prof. Miguel Leon-Ledesma, Prof. Alessio Moro
Contacts: amoro@unica.it; fcerina@unica.it; M.A.Leon-Ledesma@kent.ac.uk>
Module 1: Models of Structural Change, Prof. Alessio Moro.
Lecture 1: Facts of structural transformation and benchmark model of structural transformation, 12 Mar 2016, h. 10:30 – 12:30
Reading:
- Berthold Herrendorf, Richard Rogerson, Ákos Valentinyi, 2014. Chapter 6 – Growth and Structural Transformation, Volume 2, Handbook of Economic Growth.
Lecture 2: Economic forces behind structural transformation, 10 Mar 2016, h. 12:30 – 14:00
Readings:
- Kongsamut, Piyabha, Rebelo, Sergio, Xie, Danyang, 2001. Beyond balanced growth. Review of Economic Studies 68, 869–882.
- Ngai, L. Rachel, Pissarides, Chrisopher A., 2007. Structural change in a multisector model of growth. American Economic Review 97, 429–443.
- Berthold Herrendorf, Richard Rogerson, Ákos Valentiny. 2013. Two Perspectives on Preferences and Structural Transformation. American Economic Review, 103, 2752-2789.
Lecture 3: Structural transformation, growth and volatility, 17 Mar 2016, h. 10:30 – 12:30
Readings:
- Echevarria,Cristina, 1997. Changes in sectoral composition associated with economic growth. International Economic Review 38, 431–452.
- Koren, Miklos, and Silvana Tenreyro. 2007. Volatility and Development, Quarterly Journal of Economics 122 (1): 243-287.
- Moro, Alessio, 2012. The Structural Transformation Between Manufacturing and Services and the Decline in the US GDP Volatility, Review of Economic Dynamics 12 (3), 402-415.
- Carvalho, Vasco, Gabaix, Xavier, 2013. The great diversification and its undoing, American Economic Review 103(5): 1697-1727.
- Moro, Alessio, 2015. Structural Change, Growth and Volatility, forthcoming in American Economic Journal: Macroeconomics.
Lecture 4: Home production and Structural Transformation, 17 Mar 2016, h. 12:30 – 14:00
Readings:
- Ngai, L. Rachel, Pissarides, Chrisopher A., 2008. Trends in Hours and Economic Growth. Review of Economic Dynamics, 11, 239-256.
- Ngai, L. Rachel, Petrongolo, Barbara., 2014. Gender Gaps and the Rise of the Service Economy. IZA DP8134. CEPR DP9970.
- Moro, Alessio, Moslehi, Solmaz, Satoshi Tanaka, 2015. Does Home Production Drive Structural Transformation? Monash DISCUSSION PAPER 20/15
Module 2: Topics in international economics, Prof. Miguel Leon-Ledesma.
– Lecture 5: Intertemporal models of the current account, 12 Apr 2016, h. 10:00 – 13:00
Reading:
- Chapters 4.1.1 and 4.3 of León-Ledesma, M.A. and Mihailov, A. (forthcoming). Advanced International Macroeconomics and Finance. Oxford University Press. (I will be providing incomplete versions of the relevant chapters)
- Obstfeld and Rogoff, Ch. 1, sections 1.1.1 to 1.1.6, 1.6. and 2.1
- Chang, Y. and Smith, R.T. (2014) ‘Feldstein-Horioka Puzzles’, European Economic Review 72, 98-112.
- Taylor, A.M., (2002) ‘A century of current account dynamics,’ Journal of International Money and Finance 21, 725-748.
- Ghosh, Atish R. (1995), “International Capital Mobility Among the Major Industrialised Countries: Too Little or Too Much?” The Economic Journal 105, 107-128.
Lecture 6: Risk, uncertainty and asset markets, 13 Apr 2016, h. 10:00 – 13:00
Reading:
- Chapters Ch. 5.1.1-5.1.7 and 5.3 of León-Ledesma, M.A. and Mihailov, A. (forthcoming). Advanced International Macroeconomics and Finance. Oxford University Press. (I will be providing incomplete versions of the relevant chapters)
- Obstfeld-Rogoff (1996), Ch. 5.1.1-5.1.7 and 5.3.
- Asdrubali, Pierfederico and Soyoung Kim (2008), “Incomplete Intertemporal Consumption Smoothing and Incomplete Risk Sharing,” Journal of Money, Credit and Banking 40, 1521-1531.
- Pakko, M.R. (1998) ‘Characterizing international consumption correlations’ Review of Economics and Statistics 80, 169-174.
- Becker, Sascha O. and Mathias Hoffmann (2006), “Intra- and International Risk Sharing in the Short Run and the Long Run,” European Economic Review 50, 777-806.
Lecture 7: International business cycles, 14 Apr 2016, h. 10:00 – 13:00
Reading:
- León-Ledesma and Mihailov (forthcoming) Chapter 7.3.
- M and Gopinath, G. 2007, Emerging market business cycles: the cycle is the trend, Journal of Political Economy, 115 (1).
- Backus, D. and G. Smith, 1993, Consumption and Real Exchange Rates in Dynamic Economies with Non-Traded Goods”, Journal of International Economics, 35, pp.297-316.
- Baxter, M. and M. Crucini, 1995, Business cycles and the asset structure of foreign trade, International Economic Review, 36 (4), pp.821-854.
- Corsetti, G. Dedola, L. and Leduc, C. 2008, International risk sharing and the
transmission of productivity shocks, Review of Economic Studies, 75 (2). - Schmitt-Grohe, S. and M. Uribe, 2003, Closing small open economy models, Journal of International Economics, 61 (1), pp.163-181.
- Stockman, A. and L. Tesar, 1995, Tastes and technology in a two-country model of the business cycle: explaining international comovements, American Economic Review, 85 (1), pp.168-185.
Module 3: Agglomeration, growth and trade Prof. Fabio Cerina.
Lecture 8: Models of growth and agglomeration, 20 April 2016, h. 11:00 – 13:00
Readings:
- Baldwin, R. E. and Martin, P. (2004). ”Agglomeration and regional growth”, in Henderson J. V. and Thisse J. F. (eds.), Handbook of Regional and Urban Economics, vol. 4, Elsevier, Amsterdam, 2671-2711.
- Martin, P. and Ottaviano, G. I. P. (1999). “Growing locations: Industry location in a model of endogenous growth”. European Economic Review, 43: 281-302.
- Baldwin, R. E., Martin, P. and Ottaviano, G. I. P. (2001). “Global income divergence, trade, and industrialization: The geography of growth take-offs”. Journal of Economic Growth, 6: 5-37.
Lecture 9: Agglomeration, aggregate growth and regional imbalances, 20 April 2016, h. 14:00 – 16:00
Readings:
- Martin, P. (1999). “Public policies, regional inequalities and growth”. Journal of Public Economics 73: 85-105.
- Dupont, V., Martin, P. (2006). “Subsidies to poor regions and inequalities: some unpleasant arithmetic”. Journal of Economic Geography 6: 223-240.
- Cerina F., Mureddu F. (2014), ”Is agglomeration really good for growth? Global efficiency, interregional equity and uneven growth”, Journal of Urban Economics 84: 9-22.
Lecture 10: ‘New’ new trade theory: firms’ heterogeneity, 21 May 2016, h. 11:00 – 13:00
Readings:
- Melitz, M. (2003). “The impact of trade on intra-industry reallocations and aggregate industry productivity”. Econometrica, 71: 1695-1725.
- Melitz, M. and Ottaviano, G. I. P. (2008). “Market size, trade, and productivity”. Review of Economic Studies, 75: 295-316.
Lecture 11: ‘New’ new economic geography: agglomeration and growth when firms are heterogenous, 21 April 2016, h. 14:00 – 16:00
Readings:
- Baldwin, R. E. and Okubo, T. (2006). “Heterogeneous firms, agglomeration and economic geography: Spatial selection and sorting”. Journal of Economic Geography, 6: 323-346.
- Ottaviano G.I.P. (2010), “‘New’ new economic geography: firm heterogeneity and agglomeration economies”, Journal of Economic Geography, 11: 231-240.
- Baldwin R., Robert-Nicoud F., (2008), ”Trade and growth with heterogeneous firms”, Journal of International Economics, 74: 21-34.
Course Material
There is no textbook for this course. See the reading lists above.
Assessment
The grading will be based on two parts:
- an essay dealing with topics treated in one of the three modules
- a written exam on the other two modules