G 6222 Adv. Macro
Analysis II, Spring 2006
Prof. Stefania Albanesi,
Assignments
Assignment 1, due Feb. 6. Solution
Assignment 2, due Feb. 20. Solution
Assignment 3, due March 10. Solution
Assignment 4, due March 20. Matlab
programs.
Assignment 5, due April 10. Solution.
Assignment 6, due May 1. Solution
Handouts
Three Notions of Private Sector Equilibrium
Ramsey Equilibrium: The Primal Approach
Ramsey Allocation Problem in a Real
Economy without Capital
Wedges in Private Information Economies
All
readings in the syllabus, except for textbook chapters, are available on line
from authors’ homepages, from JSTOR or from Columbia Library’s online journal
archive, here.
A subset
of the readings are linked below.
Ramsey Approach to
Optimal Policies
V.V. Chari
and Patrick Kehoe. 2000. Optimal
Fiscal and Monetary Policy. Federal Reserve Bank of Minneapolis Staff
Report.
Andrew
Atkeson, V.V. Chari and Patrick Kehoe. 1999. Taxing Capital Income:
A Bad Idea. Federal Reserve Bank of Minneapolis QR Vol. 23, No. 3.
Fernando
Alvarez, Patrick Kehoe, and P. Andres Neumeyer. 2003. Time Consistency of
Fiscal and Monetary Policies. Federal Reserve Bank of Minneapolis Staff
Report 305.
Andres
Erosa and Martin Gervais. 2002. Optimal
Taxation in Life-Cycle Economies. Journal of Economic Theory Vol. 105.
Ramsey Policies with
Incomplete Markets
Aggregate Shocks
Aiyagari,
Rao, Albert Marcet, Thomas Sargent, Juha Seppala. 2002. Optimal
Taxation without State Contingent Debt. Journal of Political Economy Vol.
110, N.6.
Farhi,
Emmanuel. 2005. Capital
taxation and Ownership when Markets are Incomplete. Manuscript, MIT.
Idiosyncratic Shocks
Aiyagari,
Rao. 1995. Optimal
Capital Income taxation with Incomplete Markets, Borrowing Constraints, and
Constant Discounting. Journal of Political Economy, Vol. 103, N.6
Aiyagari,
Rao, 1994. Uninsured
idiosyncratic Risk and Aggregate Savings. Quarterly Journal of Economics
Vol. 109, No. 3.
Angeletos,
George-Marios. 2006. Uninsured
Idiosyncratic Investment Risk and Aggregate Savings. Manuscript, MIT.
Chien,
Yili, and Junsang Lee. 2005. Why Tax Capital?
Manuscript, UCLA.
New Dynamic Public
Finance Approach to Optimal Taxation
Narayana
Kocherlakota has a dedicated page with a review of the literature, a link to
all the papers, and a very useful annotated bibliography here.
For an
introduction to dynamic economies with private information, see my chapter on “Social Insurance”.
Albanesi,
Stefania. 2005. Optimal Taxation of
Entrepreneurial Capital with Private Information. Manuscript, Columbia
University.
Golosov,
Mikhail, Aleh Tsyvinski, Ivan Werning. 2006. New Dynamic Public
Finance: A User’s Guide. Prepared for the NBER Macroannual conference.
Time Consistent
Policies
Ramsey Taxation
V.V.
Chari. 1989. Time
Consistency and Optimal Policy Design. Federal Reserve Bank of Minneapolis,
Quarterly Review, Vol. 12, No.4.
Optimal Taxation with Private
Information
Roberts,
Kevin. 1984. The
Theoretical Limits to Redistribution. The Review of Economic Studies, Vol.
51, No.2.
Bisin,
Alberto, and Adriano Rampini. 2005. Markets as
Beneficial Constraints on the Government. Forthcoming, Journal of Public
Economics.
Acemoglu,
Daron, Mikhail Golosov, and Aleh Tsyvinski. 2005. Markets versus
Governments: Political Economy of Mechanisms. Manuscript, MIT.
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