Knowledge, Information, and Expectations in Modern Macroeconomics: In Honor of Edmund S. Phelps by Philippe AghionKnowledge, Information, and Expectations in Modern Macroeconomics: In Honor of Edmund S. Phelps by Philippe Aghion

Knowledge, Information, and Expectations in Modern Macroeconomics: In Honor of Edmund S. Phelps

EditorPhilippe Aghion

Paperback | January 26, 2003

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Macroeconomics would not be what it is today without Edmund Phelps. This book assembles the field's leading figures to highlight the continuing influence of his ideas from the past four decades. Addressing the most important current debates in macroeconomic theory, it focuses on the rates at which new technologies arise and information about markets is dispersed, information imperfections, and the heterogeneity of beliefs as determinants of an economy's performance. The contributions, which represent a breadth of contemporary theoretical approaches, cover topics including the real effects of monetary disturbances, difficulties in expectations formation, structural factors in unemployment, and sources of technical progress. Based on an October 2001 conference honoring Phelps, this incomparable volume provides the most comprehensive and authoritative account in years of the present state of macroeconomics while also pointing to its future.

The fifteen chapters are by the editors and by Daron Acemoglu, Jess Benhabib, Guillermo A. Calvo, Oya Celasun, Michael D. Goldberg, Bruce Greenwald, James J. Heckman, Bart Hobijn, Peter Howitt, Hehui Jin, Charles I. Jones, Michael Kumhof, Mordecai Kurz, David Laibson, Lars Ljungqvist, N. Gregory Mankiw, Dale T. Mortensen, Maurizio Motolese, Stephen Nickell, Luca Nunziata, Wolfgang Ochel, Christopher A. Pissarides, Glenda Quintini, Ricardo Reis, Andrea Repetto, Thomas J. Sargent, Jeremy Tobacman, and Gianluca Violante. Commenting are Olivier J. Blanchard, Jean-Paul Fitoussi, Mark Gertler, Robert E. Hall, Robert E. Lucas, Jr., David H. Papell, Robert A. Pollak, Robert M. Solow, Nancy L. Stokey, and Lars E. O. Svensson. Also included are reflections by Phelps, a preface by Paul A. Samuelson, and the editors' introduction.

Philippe Aghion is Professor of Economics at Harvard University and at University College London. Roman Frydman is Professor of Economics at New York University. Joseph Stiglitz, Professor of Economics at Columbia University, was awarded the Nobel Prize in Economic Science in 2001. Michael Woodford is the Harold H. Helm '20 Professor ...
Title:Knowledge, Information, and Expectations in Modern Macroeconomics: In Honor of Edmund S. PhelpsFormat:PaperbackDimensions:592 pagesPublished:January 26, 2003Publisher:Princeton University PressLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0691094853

ISBN - 13:9780691094854

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Table of Contents


Edmund Phelps, Insider-Economists' Insider,Paul A. Samuelson1

Edmund S. Phelps and Modern Macroeconomics,Philippe Aghion, Roman Frydman, Joseph Stiglitz, and Michael Woodford3

PART I Information, Wage-Price Dynamics, and Business Fluctuations

1 Imperfect Common Knowledge and the Effects of Monetary Policy, Michael Woodford 25

2 Comments on Woodford,Lars E. O. Svensson59

3 Sticky Information: A Model of Monetary Nonneutrality and Structural Slumps,N. Gregory Mankiw and Ricardo Reis64

4 A Theory of Rational Inflationary Inertia,Guillermo A. Calvo, Oya Celasun, and Michael Kumhof87

5 Comments on Calvo, Celasun, and Kumhof,Mark Gertler118

6 Macroeconomic Fluctuations in an Economy of Phelps-Winter Markets,Bruce Greenwald and Joseph Stiglitz123

7 General Comments on Part I,Robert E. Lucas, Jr.137

PART II Imperfect Knowledge, Expectations, and Rationality

8 Imperfect Knowledge Expectations, Uncertainty-Adjusted Uncovered Interest Rate Parity, and Exchange Rate Dynamics,Roman Frydman and Michael D. Goldberg145

9 Comments on Frydman and Goldberg,David H. Papell183

10 Endogenous Fluctuations and the Role of Monetary Policy,Mordecai Kurz with Hehui Jin and Maurizio Motolese188

11 A Debt Puzzle,David Laibson, Andrea Repetto, and Jeremy Tobacman228

12 Comments on Laibson, Repetto, and Tobacman,Robert A. Pollak267

13 Reflections on Parts I and II,Edmund S. Phelps271

PART III Determinants of Equilibrium Unemployment

14 How Monopsonistic Is the (Danish) Labor Market?Dale T. Mortensen285

15 Company Start-Up Costs and Employment, Christopher A. Pissarides 309

16 European Unemployment: From a Worker's Perspective,Lars Ljungqvist and Thomas J. Sargent326

17 Comments on Ljungqvist and Sargent,Olivier J. Blanchard351

18 Flexibility and Job Creation: Lessons for Germany,James J. Heckman357

19 The Beveridge Curve, Unemployment, and Wages in the OECD from the 1960s to the 1990s,Stephen Nickell, Luca Nunziata, Wolfgang Ochel, and Glenda Quintini394

20 Comments on Nickell, Nunziata, Ochel, and Quintini,Jean-Paul Fitoussi432

PART IV Education, Technical Change, and Growth

21 Wage Inequality and Technological Change: A Nelson-Phelps Approach,Philippe Aghion, Peter Howitt, and Gianluca Violante443

22 Comments on Aghion, Howitt, and Violante,Robert E. Hall462

23 Factor Prices and Technical Change: From Induced Innovations to Recent Debates,Daron Acemoglu464

24 Comments on Acemoglu,Nancy L. Stokey492

25 Population and Ideas: A Theory of Endogenous Growth,Charles I. Jones498

26 Another View of Investment: 40 Years Later,Jess Benhabib and Bart Hobijn522

27 General Comments on Part IV,Robert M. Solow546

28 Reflections on Parts III and IV,Edmund S. Phelps550


Editorial Reviews

"Many of the outstanding papers in this volume explore genuinely new ideas. The book addresses a large number of the hottest current macroeconomic policy issues and related theoretical problems."-Duncan K. Foley, Graduate Faculty, New School University