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    SES # TOPICS READINGS
    Labor Markets
    1 Nominal vs Real Rigidities Amazon logo Blanchard, O. J., and S. Fischer. Lectures on Macroeconomics. Cambridge, MA: MIT Press, 1989, pp. 372-374, 427. ISBN: 0262022834.

    Card, D., and D. Hyslop. "Does Inflation 'Grease the Wheels of the Labor Market'?" NBER working paper #5538, April 1996.

    Abraham, K., and J. Haltiwanger. "Real Wages and the Business Cycle." Journal of Economic Literature 33, no. 3 (1995): 1215-1264.
    2 Intertemporal Substitution in Labor Supply Amazon logo Blanchard, O. J., and S. Fischer. Lectures on Macroeconomics. Cambridge, MA: MIT Press, 1989, pp. 337-346. ISBN: 0262022834.

    Lucas, R. E., and L. A. Rapping. "Real Wages, Employment, and Inflation." Journal of Political Economy 77, no. 5 (1969): 721-754.

    Barro, R., and R. King. "Time Separable Preferences and Intertemporal Substitution Models of the Business Cycle." Quarterly Journal of Economics 99, no. 4 (1984): 817-840.
    3 Employment Relationships and Incomplete Contracts in Equilibrium Amazon logo Blanchard, O. J., and S. Fischer. Lectures on Macroeconomics. Cambridge, MA: MIT Press, 1989, pp. 438-463. ISBN: 0262022834.

    Katz, L. "Efficiency Wage Theories: A Partial Evaluation." In NBER Macroeconomics Annual. Vol. 1. Cambridge, MA: MIT Press, 1986, pp. 235-289.

    Shapiro, C., and J. Stiglitz. "Equilibrium Unemployment as a Worker Discipline Device." American Economic Review 74, no. 3 (1984): 259-293.

    Woodford, M. "Structural Slumps." JEL 32, no. 4 (1994): 1784-1815.

    Hall, R. E., and E. P. Lazear. "The Excess Sensitivity of Layoffs and Quits to Demand." Journal of Labor Economics 2, no. 2 (1984): 233-257.

    Amazon logo Hall, R. E. "Labor Market Frictions and Employment Fluctuations." In Handbook of Macroeconomics. Edited by J. B. Taylor, and M. Woodford. Amsterdam, North Holland: Elsevier Science Publishing Company, 1999, Chapter 17. ISBN: 0444825282. 

    Ramey, et. al. "Contractual Fragility, Job Destruction, and Business Cycles." Quarterly Journal of Economics 112, no. 3 (1997): 873-911.

    Caballero, R., and M. Hammour. "The 'Fundamental Transformation' in Macroeconomics." American Economic Review 86, no. 2 (1997): 181-186.

    Caballero, R. "The Macroeconomics of Specificity." Journal of Political Economy 106, no. 4 (1998): 724-767.

    Blanchard, O. J. "The Medium Run." BPEA 2 (1997): 89-158.

    Caballero, R., and M. Hammour. "Jobless Growth: Appropriability, Factor Substitution, and Unemployment." Carnegie-Rochester Conference Series on Public Policy (1998).

    Acemoglu, D. "Why do New Technologies Complement Skills? Directed Technical Change and Wage Inequality." Quarterly Journal of Economics 113, no. 4 (1998): 1055-90.
    4 Flows, Search and Restructuring Blanchard, O. J., and P. Diamond. "The Beveridge Curve." BPEA 2 (1989): 85-155.

    Davis, S. J., and J. Haltiwanger. "Gross Job Creation, Gross Job Destruction and Employment Reallocation." Quarterly Journal of Economics 107, no. 3 (1992): 819-864.

    Amazon logo Mortensen, D., and C. Pissarides. "Job Reallocation, Empoyment Fluctuations and Unemployment." In Handbook of Macroeconomics. Edited by J. B. Taylor, and M. Woodford. Amsterdam, North Holland: Elsevier Science Publishing Company, 1999, Chapter 18. ISBN: 0444825282.

    Caballero, R. J., and M. L. Hammour. "On the Timing and Efficiency of Creative Destruction." Quarterly Journal of Economics 111, no. 3 (1996): 805-852.

    Caballero, R., and M. Hammour. "The Cost of Recessions Revisited: A Reverse-Liquidationist View." Forthcoming RESTUD 2004.

    Koenders, K., and R. Rogerson. "Organizational Dynamics Over the Business Cycle: A View on Jobless Recoveries." St. Louis Federal Reserve Bank Economic Policy Conference, working paper, October 2004. (PDF)
    Financial and Credit Markets
    5 Amplification and Persistence Amazon logo Blanchard, O. J., and S. Fischer. Lectures on Macroeconomics. Cambridge, MA: MIT Press, 1989, pp. 478-488. ISBN: 0262022834.

    Bernanke, B., and M. Gertler. "Agency Costs, Net Worth, and Business Fluctuations." American Economic Review 79, no. 1 (1989): 14-31.

    Greenwald, B. C., and J. E. Stiglitz. "Financial Market Imperfections and Business Cycles." Quarterly Journal of Economics 108, no. 1 (1993): 77-114.

    Kiyotaki, N., and J. Moore. "Credit Cycles." Journal of Political Economy 105 (1997): 211-248.
    6 Banks and the Credit Crunch Bernanke, B., and A. Blinder. "Credit, Money and Aggregate Demand." American Economic Review 78, no. 2 (1988): 435-439.

    Amazon logo Kashyap, A., and J. Stein. "Monetary Policy and Bank Lending." In Monetary Policy. Edited by N.G. Mankiw. Chicago, IL: University of Chicago Press, 1994, pp. 221-262. ISBN: 0226503089. 

    Bernanke, B. S., and C. S. Lown. "The Credit Crunch." BPEA 2 (1991): 205-247.

    Holmstrom, B., and J. Tirole. "Financial Intermediation, Loanable Funds, and the Real Sector." Quarterly Journal of Economics 112, no. 3 (1997): 663-691.

    Diamond, D. W., and P. H. Dybvig. "Bank Runs, Deposit Insurance, and Liquidity." Journal of Political Economy 91, no. 3 (1983): 401-419.

    Caballero, R., and A. Krishnamurthy. "A Dual Liquidity Model of Emerging Markets." American Economic Review , Papers and Proceedings 92, no. 2 (2002).

    Bernanke, B., and A. Blinder. "Credit, Money and Aggregate Demand." American Economic Review 78, no. 2 (1988): 435-439.
    7 Bubbles Tirole, J. "Asset Bubbles and Overlapping Generations." Econometrica 53, no. 6 (1985): 1499-1528.

    Santos, M. S., and M. Woodford. "Rational Asset Pricing Bubbles." Econometrica 65, no. 1 (1997): 19-58.

    Amazon logo Shiller, Robert. Irrational Exuberance. Princeton, NJ: Princeton University Press, 2000. ISBN: 0691050627. 

    Abel, A. B., N. G. Mankiw, L. H. Summers, and R. J. Zeckhauser. "Assessing Dynamic Efficiency: Theory and Evidence." Review of Economic Studies 56, no. 1 (1989): 1-20.

    Caballero, R. J, E. Farhi, and M. L. Hammour. "Speculative Growth: Hints from the US Economy." NBER working paper #10518, May 2004. (PDF)

    Abreu, D., and M. Brunnermeier. "Bubbles and Crashes." Econometrica 71, no. 1 (2003): 173-204.

    Ventura, J. "A Portfolio View of the U.S. Current Account Deficit." Brookings Paper on Economic Activity, 2001.

    Allen, F., and D. Gale. "Bubbles and Crises." Economic Journal 110, no. 460 (2000): 236-255.

    Scheinkman, J., and W. Xiong. "Overconfidence and Speculative Bubbles." Journal of Political Economy 111, no. 6 (2003): 1183-1219.

    Panageas, S. "Overpricing, speculation and investment." MIT mimeo, October 2003.
    The Goods Market
    8 Markups Amazon logo Rotemberg, J. J., and M. Woodford. "The Cyclical Behavior of Prices and Costs." In Handbook of Macroeconomics. Edited by J. B. Taylor, and M. Woodford. Amsterdam, North Holland: Elsevier Science Publishing Company, 1999, Chapter 16. ISBN: 0444825282.

    Bils, M. "The Cyclical Behavior of Marginal Cost and Price." American Economic Review 77, no. 5 (1987): 838-855.

    Shea, J. "Do Supply Curves Slope Up?" Quarterly Journal of Economics 108, no. 1 (1993): 1-32.

    Bils, M., and Y. Chang. "Understanding How Price Responds to Costs and Production." Carnegie-Rochester Conference Series on Public Policy 52, no. 1 (2000): 33-77.
    9 Complementarities Amazon logo Benhabib, J., and R. Farmer. "Indeterminandy and Sunspots in Macroeconomics." In Handbook of Macroeconomics. Edited by J. B. Taylor, and M. Woodford. Amsterdam, North Holland: Elsevier Science Publishing Company, 1999. ISBN: 0444825282.

    Cooper, R., and A. John. "Coordinating Coordination Failures in Keynesian Models." Quarterly Journal of Economics 103, no. 3 (1988): 441-464.

    Kiyotaki, Nobuhiro. "Multiple Expectational Equilibria under Monopolistic Competition." Quarterly Journal of Economics 103, no. 4 (1988): 695-713.

    Murphy, K. M., A. Shleifer, and R. W. Vishny. "Industrialization and the Big Push." Journal of Political Economy 97 (1989): 1003-1026.
    10 Small Costs of Price Adjustments Amazon logo Blanchard, O. J. "Why Does Money affect Output? A Survey." In Handbook of Monetary Economics. Edited by B. M. Friedman, and F. H. Hahn. Amsterdam, North Holland: Elsevier Science Publishing Company, 1990. ISBN: 0444880259.

    Akerlof, G. A., and J. L. Yellen. "A Near-Rational Model of the Business Cycle, with Wage and Price Inertia." Quarterly Journal of Economics 100, supplement (1985): 823-828.

    Caplin A., and D. Spulber. "Menu Costs and the Neutrality of Money." Quarterly Journal of Economics 102, no. 4 (1987): 703-726.

    Caballero, R. J., and E. Engel. "Heterogeneity and Output Fluctuations in a Dynamic Menu Costs Model." Review of Economic Studies 60, no. 1 (1993): 95-120.

    Caplin, A., and J. Leahy. "State-Dependent Pricing and the Dynamics of Money and Output." Quarterly Journal of Economics 106, no. 3 (1991): 683-708.

    Caballero, R. J., and E. Engel. "Microeconomic Rigidities and Aggregate Price Dynamics." European Economic Review 37, no. 4 (1993): 697-717.

    Carlton, D. "The Rigidity of Prices." American Economic Review 76, no. 4 (1986): 637-658.

    Calvo, G. "Staggered Prices in a Utility Maximizing Framework." Journal of Monetary Economics 12, no. 3 (1983): 383-398.

    Golosov, M., and R. Lucas. "Menu Costs and Phillips Curves." NBER working paper #10187, December 2003.

    Bils, M, and P. Klenow. "Some Evidence on the Importance of Sticky Prices." Journal of Political Economy 112, no. 5 (2004): 947-985.