Advanced Macroeconomics

by David Romer

An Introduction to the Study of Macroeconomics at an Advanced Level

The fourth edition of Romer's Advanced Macroeconomics presents the major theories concerning the central questions of macroeconomics. In areas ranging from economic growth and short-run fluctuations to the natural rate of unemployment and fiscal policy, formal models are used to present and analyze key ideas and issues. The theoretical analysis is supplemented by examples of relevant empirical work, illustrating the ways that theories can be applied and tested.

The book has been revised more extensively than ever before. There are changes throughout to incorporate new research, eliminate inessential material, and further improve the presentation. Key revisions include:

• There are now separate chapters on endogenous growth (Chapter 3) and cross-country income differences (Chapter 4). Chapter 3 includes a careful presentation of Paul Romer’s now-classic model of endogenous technological change, and Chapter 4 takes the reader to the frontiers of empirical research on the underlying sources of the enormous differences in standards of living among countries.
• Chapters 6 and 7 on short-run fluctuations when prices are not fully flexible have been completely redone. The analysis is grounded in microeconomic foundations from the outset. The chapters build from simple models to the canonical three-equation new Keynesian model (the new Keynesian IS curve, the new Keynesian Phillips curve, and an interest-rate rule) and ingredients of modern dynamic stochastic general-equilibrium models of fluctuations.
• The revisions to Chapters 6 and 7 carry over to the analysis of monetary policy in Chapter 11. This chapter has been entirely reorganized and includes a careful treatment of optimal policy in forward-looking models.
• An epilogue describes some of the main issues that the financial and macroeconomic crisis that began in 2008 raises for macroeconomics and discusses how the crisis may change the field.

Genres: Economics, Textbooks, Nonfiction, Finance, Academic, Reference, Mathematics

736 pages, Hardcover

First published December 1, 1995

Reviews

[Andrii Tymchuk · Rating 5 out of 5]

This book has become a nice way for me to track my own progress. I encountered it first in 2019 when I was an undergrad and understood almost nothing. In 2022, on the master course on macro, Chapter 1 about Solow model was assigned for us to read. This year, I finally decided to read it all to prepare for being a TA. I was genuinely surprised how my perception changed with time passed. A decent macro textbook, indeed.

[Tomáš Löffler · Rating 5 out of 5]

Starting with macroeconomics modeling? You just encountered the right book for you.

[Ramón Cornejo-Muñoz · Rating 4 out of 5]

Un buen libro para empezar a estudiar macroeconomía avanzada. No es muy riguroso matemáticamente, en el sentido de que no es su orientación. Excelente para dar intuición de la macroeconomía cerca de la frontera y de los fundamentos básicos.

[Zubayir Kazi · Rating 4 out of 5]

The mathematics where not quite elementary (eg. generic ODEs) varies in lack of rigor, detail of exposition but a good problem book which at times gives it an ad hoc character. (Completely trivial compared to Sargent, Ljungqvist which though, is not pedagogic).

[Orkhan Huseynli · Rating 5 out of 5]

QUITE A COMPREHENSIVE BOOK COVERING MANY MACROECONOMIC MODELS. Easily readable and interesting exercises that will coin your knowledge of the theory

[نيرة · Rating 2 out of 5]

Wouldn’t recommend. Tears still in my eyes

[Josh Winchester · Rating 5 out of 5]

Exogenous growth is caused by technology

[Andreas Engström · Rating 4 out of 5]

Mainly for economists

[Douglass Gaking · Rating 4 out of 5]

The title doesn't lie. This is a high-level text that covers macroeconomic models for economic growth and fiscal and monetary policy. Romer has a background in physics and focuses primarily on mathematical models. A solid background in algebra, calculus, probability, and statistics is necessary to grasp about 80% of the text.

Romer assumes a great deal of prior knowledge of both the mathematical and economic concepts. This text is extremely comprehensive and incorporates research from various schools of economic thought, including new Keynesian, neoclassical, and monetarist perspectives. Romer is extremely thorough with each concept and includes copious references to papers, making this an excellent research tool.

This recently released 5th edition covers new concepts, such as how economists' perspectives of the zero lower bound have changed, and cites many recent studies that challenge and expand on more fundamental concepts.

My only criticism of the text is that the assumptions of prior knowledge result in a disconnect between the text and the problems at the end of each chapter, making this very challenging to use as a textbook, especially for online courses or independent learning.

[Kresna Navarro-Mansueto · Rating 4 out of 5]

Truly an advanced macroecon book!

[Rizwan · Rating 4 out of 5]

This came across as a decent macro book. It wasn't as detailed or as intensive as the Economic Growth but it was a good choice to quickly cover a wide range of growth theories and other macro models.

[Trần Tùng · Rating 5 out of 5]

Super explanation using math in the essence. For those with a poor imagination on how the various elements of the economy interact at an overarching level, this book shows that by pure math equations

[Hossein Ajami]

It is good book about advanced macroeconomics and The 5th edition was released a few month ago. Prof David Romer cover widely idea about business cycle in this book

[Saruul · Rating 5 out of 5]

Macroeconomics-ын гол онолуудыг цэгцтэй багцалж харуулсан, ер нь салбартаа байгаа ганц ном байх.

[Abbasali · Rating 5 out of 5]

Useful and comprehensive book to find the concepts of Macroeconomic.