Advanced Macroeconomic Theory II

The first half of the course focuses on issues in macro development. Specific topics include an overview of broad development patterns, development accounting, misallocation, structural change, premature deindustrialization, the role of agriculture in development, market imperfections, and risk-sharing. The second half of the course focuses on macro implications of micro imperfections. We explore the implication of labor market frictions and financial frictions for income distribution, economic growth and fluctuations. We examine the roles and the limitations of public policies for improving resource allocation and welfare.