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The Legacy of Robert Lucas, Jr.
This major three volume collection celebrates the legacy of Robert E. Lucas, Jr., winner of the Nobel Memorial Prize in Economic Science in 1994, founder of the New Classical School and one of the most influential macroeconomists of the late twentieth century.
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Contributors
Contents
More Information
This major three volume collection celebrates the legacy of Robert E. Lucas, Jr., winner of the Nobel Memorial Prize in Economic Science in 1994, founder of the New Classical School and one of the most influential macroeconomists of the late twentieth century.
The Legacy of Robert Lucas, Jr. presents the eleven most influential articles on macroeconomics by Robert Lucas, Jr. together with articles by a wide variety of other key economists who extend, develop, criticize, or are otherwise significantly influenced by Lucas’s seminal ideas.
The Legacy of Robert Lucas, Jr. presents the eleven most influential articles on macroeconomics by Robert Lucas, Jr. together with articles by a wide variety of other key economists who extend, develop, criticize, or are otherwise significantly influenced by Lucas’s seminal ideas.
Contributors
71 articles, dating from 1969 to 1995
Contributors include: W.B. Arthur, R. Barro, D. Hendry, F.E. Kydland, B.T. McCallum, E.C. Prescott, T.J. Sargent, N.L. Stokey, L.E.O. Svensson, N. Wallace
Contributors include: W.B. Arthur, R. Barro, D. Hendry, F.E. Kydland, B.T. McCallum, E.C. Prescott, T.J. Sargent, N.L. Stokey, L.E.O. Svensson, N. Wallace
Contents
Contents:
Volume I: Acknowledgements • Introduction Kevin D. Hoover
Part I: Foundations of the New Classical Macroeconomics
A Lucas at the Beginning of the New Classical Macroeconomics
1. Robert E. Lucas, Jr. and Leonard A. Rapping (1969), ‘Real Wages, Employment, and Inflation’
2. Robert E. Lucas, Jr. (1972), ‘Econometric Testing of the Natural Rate Hypothesis’
3. Robert E. Lucas, Jr. (1972), ‘Expectations and the Neutrality of Money’
4. Robert E. Lucas, Jr. (1973), ‘Some International Evidence on Output-Inflation Tradeoffs’
5. Robert E. Lucas, Jr. (1975), ‘An Equilibrium Model of the Business Cycle’
6. Robert E. Lucas, Jr. (1976), ‘Econometric Policy Evaluation: A Critique’
B Rational Expectations
7. Roman Frydman (1982), ‘Towards an Understanding of Market Processes: Individual Expectations, Learning, and Convergence to Rational Expectations Equilibrium’
8. Robert M. Townsend (1983), ‘Forecasting the Forecasts of Others’
9. Michael C. Lovell (1986), ‘Tests of the Rational Expectations Hypothesis’
10. Charles R. Plott and Shyam Sunder (1988), ‘Rational Expectations and the Aggregation of Diverse Information in Laboratory Security Markets’
11. Roger Guesnerie (1992), ‘An Exploration of the Eductive Justifications of the Rational-Expectations Hypothesis’
C Intertemporal Substitution
12. Joseph G. Altonji (1982), ‘The Intertemporal Substitution Model of Labour Market Fluctuations: An Empirical Analysis’
13. N. Gregory Mankiw, Julio J. Rotemberg and Lawrence H. Summers (1985), ‘Intertemporal Substitution in Macroeconomics’
14. Richard Rogerson and Peter Rupert (1991), ‘New Estimates of Intertemporal Substitution: The Effect of Corner Solutions for Year-Round Workers’
D Natural Rate Hypothesis
15. Fischer Black (1974), ‘Uniqueness of the Price Level in Monetary Growth Models with Rational Expectations’
16. Thomas J. Sargent (1976), ‘The Observational Equivalence of Natural and Unnatural Rate Theories of Macroeconomics’
17. John B. Taylor (1980), ‘Aggregate Dynamics and Staggered Contracts’
18. M.H. Pesaran (1982), ‘A Critique of the Proposed Tests of the Natural Rate–Rational Expectations Hypothesis’
Name Index
Volume II: Acknowledgements
E Empirical Testing of the Natural Rate Hypothesis
1. B.T. McCallum (1976), ‘Rational Expectations and the Natural Rate Hypothesis: Some Consistent Estimates’
2. Thomas J. Sargent (1976), ‘A Classical Macroeconometric Model for the United State’
3. Robert J. Barro (1977), ‘Unanticipated Money Growth and Unemployment in the United States’
4. Robert J. Barro and Zvi Hercowitz (1980), ‘Money Stock Revisions and Unanticipated Money Growth’
5. Leonardo Leiderman (1980), ‘Macroeconometric Testing of the Rational Expectations and Structural Neutrality Hypotheses for the United States’
6. John Y. Campbell and N. Gregory Mankiw (1987), ‘Are Output Fluctuations Transitory?’
F Policy Ineffectiveness
7. Thomas J. Sargent and Neil Wallace (1975), ‘“Rational” Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule’
8. Thomas J. Sargent and Neil Wallace (1976), ‘Rational Expectations and the Theory of Economic Policy’
9. John B. Taylor (1975), ‘Monetary Policy during a Transition to Rational Expectations’
10. Stanley Fischer (1977), ‘Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule’
11. Frederic S. Mishkin (1982), ‘Does Anticipated Monetary Policy Matter? An Econometric Investigation’
12. Robert J. Barro and David B. Gordon (1983), ‘A Positive Theory of Monetary Policy in a Natural Rate Model’
G Business Cycles
13. Robert J. Barro (1980), ‘A Capital Market in an Equilibrium Business Cycle Mode’
14. Finn E. Kydland and Edward C. Prescott (1982), ‘Time to Build and Aggregate Fluctuations’
15. Alan C. Stockman and Ai Tee Koh (1986), ‘Open-Economy Implications of Two Models of Business Fluctuations’
16. Albert Marcet and Thomas J. Sargent (1989), ‘Convergence of Least-Squares Learning in Environments with Hidden State Variables and Private Information’
H Econometrics and Policy Non-Invariance
17. Kenneth F. Wallis (1980), ‘Econometric Implications of the Rational Expectations Hypothesis’
18. Lars Peter Hansen and Thomas J. Sargent (1980), ‘Formulating and Estimating Dynamic Linear Rational Expectations Models’
19. Thomas J. Sargent (1981), ‘Interpreting Economic Time Series’
20. Lars Peter Hansen and Kenneth J. Singleton (1982), ‘Generalized Instrumental Variables Estimation of Nonlinear Rational Expectations Models’
21. Salih Neftci and Thomas J. Sargent (1978), ‘A Little Bit of Evidence on the Natural Rate Hypothesis from the U.S.’
22. Olivier J. Blanchard (1984), ‘The Lucas Critique and the Volcker Deflation’
23. Christopher A. Sims (1986), ‘Are Forecasting Models Usable for Policy Analysis?’
24. Preston J. Miller and William T. Roberds (1991), ‘The Quantitative Significance of the Lucas Critique’
25. Carlo Favero and David F. Hendry (1992), ‘Testing the Lucas Critique: A Review’
26. Roger E.A. Farmer (1992), ‘A Comment on “Testing the Lucas Critique: A Review”’
27. Grayham E. Mizon (1992), ‘Comment’
28. Carlo Favero and David F. Hendry (1992), ‘Reply’
29. Stephen F. LeRoy (1995), ‘On Policy Regimes’
Name Index
Volume III: Acknowledgements
Part I: Dynamic Optimization
1. Robert E. Lucas, Jr. and Edward C. Prescott (1971), ‘Investment Under Uncertainty’
2. William A. Brock and Michael J.P. Magill (1979), ‘Dynamics Under Uncertainty’
3. Thomas J. Sargent (1989), ‘Two Models of Measurements and the Investment Accelerator’
4. Andrew B. Abel and Janice C. Eberly (1994), ‘A Unified Model of Investment Under Uncertainty’
Part II: Asset Pricing
5. Robert E. Lucas, Jr. (1978), ‘Asset Prices in an Exchange Economy’
6. Robert E. Lucas, Jr. (1982), ‘Interest Rates and Currency Prices in a Two-Country World’
7. Lars Peter Hansen and Kenneth J. Singleton (1983), ‘Stochastic Consumption, Risk Aversion, and the Temporal Behavior of Asset Returns’
8. Robert J. Hodrick and Sanjay Srivastava (1984), ‘An Investigation of Risk and Return in Forward Foreign Exchange’
9. Rajnish Mehra and Edward C. Prescott (1985), ‘The Equity Premium: A Puzzle’
10. Robert M. Townsend (1987), ‘Asset-Return Anomalies in a Monetary Economy’
11. W. Brian Arthur (1991), ‘Designing Economic Agents that Act Like Human Agents: A Behavioral Approach to Bounded Rationality’
12. Lars E.O. Svensson (1985), ‘Money and Asset Prices in a Cash-in-Advance Economy’
Part III: Monetary and Fiscal Policy
13. Robert E. Lucas, Jr. and Nancy L. Stokey (1983), ‘Optimal Fiscal and Monetary Policy in an Economy without Capital’
14. Mats Persson, Torsten Persson and Lars E.O. Svensson (1987), ‘Time Consistency of Fiscal and Monetary Policy’
15. V.V. Chari and Patrick J. Kehoe (1993), ‘Sustainable Plans and Debt’
16. Alberto Alesina and Guido Tabellini (1990), ‘A Positive Theory of Fiscal Deficits and Government Debt’
17. Nancy L. Stokey (1991), ‘Credible Public Policy’
18. David Romer (1993), ‘Why Should Governments Issue Bonds?’
Part IV: Endogenous Growth
19. Robert E. Lucas, Jr. (1988), ‘On the Mechanics of Economic Development’
20. Robert J. Barro (1990), ‘Government Spending in a Simple Model of Endogenous Growth’
21. Larry E. Jones, Rodolfo E. Manuelli and Peter E. Rossi (1993), ‘Optimal Taxation in Models of Endogenous Growth’
22. Robert G. King and Ross Levine (1993), ‘Finance and Growth: Schumpeter Might Be Right’
23. Robert J. Barro and Jong-Wha Lee (1993), ‘International Comparisons of Educational Attainment’
24. Charles I. Jones (1995), ‘Time Series Tests of Endogenous Growth Models’
Name Index
Volume I: Acknowledgements • Introduction Kevin D. Hoover
Part I: Foundations of the New Classical Macroeconomics
A Lucas at the Beginning of the New Classical Macroeconomics
1. Robert E. Lucas, Jr. and Leonard A. Rapping (1969), ‘Real Wages, Employment, and Inflation’
2. Robert E. Lucas, Jr. (1972), ‘Econometric Testing of the Natural Rate Hypothesis’
3. Robert E. Lucas, Jr. (1972), ‘Expectations and the Neutrality of Money’
4. Robert E. Lucas, Jr. (1973), ‘Some International Evidence on Output-Inflation Tradeoffs’
5. Robert E. Lucas, Jr. (1975), ‘An Equilibrium Model of the Business Cycle’
6. Robert E. Lucas, Jr. (1976), ‘Econometric Policy Evaluation: A Critique’
B Rational Expectations
7. Roman Frydman (1982), ‘Towards an Understanding of Market Processes: Individual Expectations, Learning, and Convergence to Rational Expectations Equilibrium’
8. Robert M. Townsend (1983), ‘Forecasting the Forecasts of Others’
9. Michael C. Lovell (1986), ‘Tests of the Rational Expectations Hypothesis’
10. Charles R. Plott and Shyam Sunder (1988), ‘Rational Expectations and the Aggregation of Diverse Information in Laboratory Security Markets’
11. Roger Guesnerie (1992), ‘An Exploration of the Eductive Justifications of the Rational-Expectations Hypothesis’
C Intertemporal Substitution
12. Joseph G. Altonji (1982), ‘The Intertemporal Substitution Model of Labour Market Fluctuations: An Empirical Analysis’
13. N. Gregory Mankiw, Julio J. Rotemberg and Lawrence H. Summers (1985), ‘Intertemporal Substitution in Macroeconomics’
14. Richard Rogerson and Peter Rupert (1991), ‘New Estimates of Intertemporal Substitution: The Effect of Corner Solutions for Year-Round Workers’
D Natural Rate Hypothesis
15. Fischer Black (1974), ‘Uniqueness of the Price Level in Monetary Growth Models with Rational Expectations’
16. Thomas J. Sargent (1976), ‘The Observational Equivalence of Natural and Unnatural Rate Theories of Macroeconomics’
17. John B. Taylor (1980), ‘Aggregate Dynamics and Staggered Contracts’
18. M.H. Pesaran (1982), ‘A Critique of the Proposed Tests of the Natural Rate–Rational Expectations Hypothesis’
Name Index
Volume II: Acknowledgements
E Empirical Testing of the Natural Rate Hypothesis
1. B.T. McCallum (1976), ‘Rational Expectations and the Natural Rate Hypothesis: Some Consistent Estimates’
2. Thomas J. Sargent (1976), ‘A Classical Macroeconometric Model for the United State’
3. Robert J. Barro (1977), ‘Unanticipated Money Growth and Unemployment in the United States’
4. Robert J. Barro and Zvi Hercowitz (1980), ‘Money Stock Revisions and Unanticipated Money Growth’
5. Leonardo Leiderman (1980), ‘Macroeconometric Testing of the Rational Expectations and Structural Neutrality Hypotheses for the United States’
6. John Y. Campbell and N. Gregory Mankiw (1987), ‘Are Output Fluctuations Transitory?’
F Policy Ineffectiveness
7. Thomas J. Sargent and Neil Wallace (1975), ‘“Rational” Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule’
8. Thomas J. Sargent and Neil Wallace (1976), ‘Rational Expectations and the Theory of Economic Policy’
9. John B. Taylor (1975), ‘Monetary Policy during a Transition to Rational Expectations’
10. Stanley Fischer (1977), ‘Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule’
11. Frederic S. Mishkin (1982), ‘Does Anticipated Monetary Policy Matter? An Econometric Investigation’
12. Robert J. Barro and David B. Gordon (1983), ‘A Positive Theory of Monetary Policy in a Natural Rate Model’
G Business Cycles
13. Robert J. Barro (1980), ‘A Capital Market in an Equilibrium Business Cycle Mode’
14. Finn E. Kydland and Edward C. Prescott (1982), ‘Time to Build and Aggregate Fluctuations’
15. Alan C. Stockman and Ai Tee Koh (1986), ‘Open-Economy Implications of Two Models of Business Fluctuations’
16. Albert Marcet and Thomas J. Sargent (1989), ‘Convergence of Least-Squares Learning in Environments with Hidden State Variables and Private Information’
H Econometrics and Policy Non-Invariance
17. Kenneth F. Wallis (1980), ‘Econometric Implications of the Rational Expectations Hypothesis’
18. Lars Peter Hansen and Thomas J. Sargent (1980), ‘Formulating and Estimating Dynamic Linear Rational Expectations Models’
19. Thomas J. Sargent (1981), ‘Interpreting Economic Time Series’
20. Lars Peter Hansen and Kenneth J. Singleton (1982), ‘Generalized Instrumental Variables Estimation of Nonlinear Rational Expectations Models’
21. Salih Neftci and Thomas J. Sargent (1978), ‘A Little Bit of Evidence on the Natural Rate Hypothesis from the U.S.’
22. Olivier J. Blanchard (1984), ‘The Lucas Critique and the Volcker Deflation’
23. Christopher A. Sims (1986), ‘Are Forecasting Models Usable for Policy Analysis?’
24. Preston J. Miller and William T. Roberds (1991), ‘The Quantitative Significance of the Lucas Critique’
25. Carlo Favero and David F. Hendry (1992), ‘Testing the Lucas Critique: A Review’
26. Roger E.A. Farmer (1992), ‘A Comment on “Testing the Lucas Critique: A Review”’
27. Grayham E. Mizon (1992), ‘Comment’
28. Carlo Favero and David F. Hendry (1992), ‘Reply’
29. Stephen F. LeRoy (1995), ‘On Policy Regimes’
Name Index
Volume III: Acknowledgements
Part I: Dynamic Optimization
1. Robert E. Lucas, Jr. and Edward C. Prescott (1971), ‘Investment Under Uncertainty’
2. William A. Brock and Michael J.P. Magill (1979), ‘Dynamics Under Uncertainty’
3. Thomas J. Sargent (1989), ‘Two Models of Measurements and the Investment Accelerator’
4. Andrew B. Abel and Janice C. Eberly (1994), ‘A Unified Model of Investment Under Uncertainty’
Part II: Asset Pricing
5. Robert E. Lucas, Jr. (1978), ‘Asset Prices in an Exchange Economy’
6. Robert E. Lucas, Jr. (1982), ‘Interest Rates and Currency Prices in a Two-Country World’
7. Lars Peter Hansen and Kenneth J. Singleton (1983), ‘Stochastic Consumption, Risk Aversion, and the Temporal Behavior of Asset Returns’
8. Robert J. Hodrick and Sanjay Srivastava (1984), ‘An Investigation of Risk and Return in Forward Foreign Exchange’
9. Rajnish Mehra and Edward C. Prescott (1985), ‘The Equity Premium: A Puzzle’
10. Robert M. Townsend (1987), ‘Asset-Return Anomalies in a Monetary Economy’
11. W. Brian Arthur (1991), ‘Designing Economic Agents that Act Like Human Agents: A Behavioral Approach to Bounded Rationality’
12. Lars E.O. Svensson (1985), ‘Money and Asset Prices in a Cash-in-Advance Economy’
Part III: Monetary and Fiscal Policy
13. Robert E. Lucas, Jr. and Nancy L. Stokey (1983), ‘Optimal Fiscal and Monetary Policy in an Economy without Capital’
14. Mats Persson, Torsten Persson and Lars E.O. Svensson (1987), ‘Time Consistency of Fiscal and Monetary Policy’
15. V.V. Chari and Patrick J. Kehoe (1993), ‘Sustainable Plans and Debt’
16. Alberto Alesina and Guido Tabellini (1990), ‘A Positive Theory of Fiscal Deficits and Government Debt’
17. Nancy L. Stokey (1991), ‘Credible Public Policy’
18. David Romer (1993), ‘Why Should Governments Issue Bonds?’
Part IV: Endogenous Growth
19. Robert E. Lucas, Jr. (1988), ‘On the Mechanics of Economic Development’
20. Robert J. Barro (1990), ‘Government Spending in a Simple Model of Endogenous Growth’
21. Larry E. Jones, Rodolfo E. Manuelli and Peter E. Rossi (1993), ‘Optimal Taxation in Models of Endogenous Growth’
22. Robert G. King and Ross Levine (1993), ‘Finance and Growth: Schumpeter Might Be Right’
23. Robert J. Barro and Jong-Wha Lee (1993), ‘International Comparisons of Educational Attainment’
24. Charles I. Jones (1995), ‘Time Series Tests of Endogenous Growth Models’
Name Index