Professor Karl Shell |
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Lectures on Overlapping Generations Models and Sunspot Equilibrium Professor Karl Shell, one of the leading economic and monetary theorists of the last 40 years will be visiting the Department of Economics, NUS, as the Tan Chin Tuan Visiting Professor of Money and Banking in August 2005. Professor Shell is currently the Robert Julius Thorne Professor of Economics at Cornell University. After his PhD from Stanford University, he has held positions at Massachusetts Institute of Technology, University of Pennsylvania, CEPREMAP, University of Paris I, Stanford University, University of California (San Diego), Cambridge University, and New York University. He was made a Fellow of the Econometric Society in 1973. Professor Shell has made fundamental contributions to developing the foundations of dynamic general equilibrium theory on which modern macroeconomics and monetary economics are based. His profound influence on the development of economics has come not only from his research but also from his founding and editing the Journal of Economic Theory. Professor Shell’s contributions to economics include work in neo-classical and endogenous growth theory, the foundations of overlapping generations and the role of the double infinity, role of money and financial assets in dynamic general equilibrium models, sunspot equilibrium and extrinsic uncertainty, theory of index numbers, market games, and economies with indivisibilities, bank runs and financial crises. At NUS Professor Shell will be giving a series of lectures on overlapping generations models and sunspot equilibrium, two areas where his contributions have been seminal. He will also be giving an Invited Lecture at the SERC 2005. -- Aditya Goenka Lecture 1: Overlapping Generations Paul A. Samuelson, "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, December 1958, 467-482. Karl Shell, "Notes on the Economics of Infinity," Journal of Political Economy, Vol. 79(5), September/October 1971, 1002-1011. Lecture 2: Overlapping Generations Yves Balasko and Karl Shell, "The Overlapping-Generations Model, I: The Case of Pure Exchange without Money, " Journal of Economic Theory, Vol. 23(3), December 1980, 281-306. Yves Balasko and Karl Shell, "The Overlapping-Generations Model, II: The Case of Pure Exchange with Money," Journal of Economic Theory, Vol. 24(1), February 1981, 112-142. See also "Erratum," Journal of Economic Theory, Vol. 25(3), December 1981, 471. Karl Shell, "Monnaie et Allocation Intertemporelle," [title and abstract in French, text in English] mimeo, Séminaire d'Econométrie Roy-Malinvaud, Centre National de la Recherche Scientifique, Paris, November 21, 1977. (Forthcoming in Macroeconomic Dynamics.) NUS Staff Seminar: Sunspots Abstract: In a Sunspot Equilibrium, the allocation of resources depends on some purely extrinsic random variable - a random variable that has no effect on the fundamentals. The Sunspot Equilibrium concept provides a basis for rational-expectations models of excess market volatility, thus providing a link between Keynesian and rational expectations macro analyses. Sunspots can improve resource allocation in non-convex economies. The history of Sunspot Equilibrium and recent results are presented. Background reading: See the papers listed on www.karlshell.com/sum1.html, especially: Karl Shell, "Sunspot Equilibrium," in The New Palgrave: A Dictionary of Economics (J. Eatwell, M. Milgate, and P. Newman, eds.), Vol. 4, New York: Macmillan, 1987, 549-551. |
