Dr. Todd A. Knoop
Department of Economics and Business
Office: Dept. of Economics and Business Home: 1004 Kirkwood Ave
201 College Hall Iowa City, IA 52240
Cornell College (319) 356-6201
600 First St. West
Mt. Vernon, IA 52314-1098
Purdue University (West Lafayette, IN)
Economics Ph.D. Ph.D. July 1996
Major Fields: Macroeconomics/Monetary Theory
International Trade ABD May 1995
Miami University (Oxford, OH)
M.A. in Economics M.A. Aug. 1992
Master’s Paper: An Empirical Investigation of
Strategic Monetary Policy
B.A. in Economics and Finance B.A. May 1991,
G.P.A.: 3.95 summa cum laude
Title: Aggregate Spillovers and Imperfect Competition: The Implications for Business Cycles and the Welfare Effects of Tax Reform
Advisor: Dr. John A. Carlson; Committee: Dr. Kenneth J. Matheny,
Dr. Sheng-Cheng Hu, Dr. K. Rao Kadiyala
Assistant Professor, Cornell College (Mt. Vernon, IA) 1998-present
Courses: Introduction to Macroeconomics
Money and Banking
Advanced Macroeconomics and Growth Theory
The Economics of Recessions and Depressions
Assistant Professor, Northern Illinois University (DeKalb, IL) 1996-1998
Courses: Graduate Macroeconomics
Honors Introduction to Macroeconomics
Introduction to Macroeconomics
Visiting Assistant Professor, Drake University (Des Moines, IA) 1995-1996
Courses: Intermediate Macroeconomics
International Monetary Economics
Introduction to Macroeconomics
Introduction to Microeconomics
Instructor, Purdue University (Lafayette, IN) 1992-1995
Courses: Introduction to Macroeconomics
Introduction to Economics
Introduction to Macroeconomics Money and Banking
Introduction to Microeconomics Monetary Theory
Intermediate Macroeconomics Economic Development
Business Cycles and Depressions Graduate Macroeconomics
Financial Macroeconomics International Trade
Growth Theory Monetary International Economics
Modern Financial Macroeconomics: Panics, Crashes, and Crises, 2008, Wiley-Blackwell publishing
Abstract: This book examines the role that financial markets and financial institutions play in modern macroeconomics, particularly focusing on the causes of recessions and depressions, both in the US and internationally. This book discusses both the empirical and theoretical links between financial systems and economic performance as well as case studies of the role of finance in specific business cycle episodes. In addition to targeting a general readership interested in finance and macroeconomics, this text will appeal to three groups. First, scholars who are interested in a non-technical review of the recent and important advances in our understanding of the macroeconomic impact of financial systems will find this book attractive. Second, this book is appropriate for use in upper-level undergraduate courses (300-400 level) with a macroeconomic focus such as Financial Macroeconomics or Monetary Economics. Finally, this book will also be useful as an ancillary text in courses on Money and Banking, International Financial Economics, Financial Institutions, Commercial Banking, Business Cycles, and Intermediate Macroeconomics.
There is no existing book that examines the theory, the empirics, and specific case studies of the role of finance in modern macroeconomic thought. This book is needed because understanding the workings of financial systems is indispensable if you want true insight into modern macroeconomics. Recent economic events, from the East Asian crisis to recent slowdowns in many developed countries, prove this. No existing book highlights the crucial role that financial systems play in macroeconomic performance and which fully encompasses much of the new research that has taken place over the last decade on the macroeconomic effects of financial systems. This book presents the interplay between current research in the fields of financial macroeconomics and business cycles in a way that is both interesting and accessible.
Recessions and Depressions: Understanding Business Cycles, 2004, Praeger Publishing.
Abstract: Recessions and depressions are important, primarily because of their devastating impact on human welfare but also because the struggle to understand them has shaped modern macroeconomic theory. This book reviews the empirical data of business cycles, the theories that economists have developed to explain them, and case studies of recessions and depressions both in the U.S. and internationally.
The study of modern business cycles began with Keynesian economics, which focused on the macroeconomic impact of market failures. A neoclassical resurgence took place during the 1970s and 1980s, which focused on the role of imperfect information, destabilizing government policies, and supply shocks. However, current business cycle research has once again returned to the study of market failures and the microeconomic reasons behind them. While our overall understanding of economic contractions has greatly improved as theories have risen to prominence then faded, economists' record of forecasting and preventing business cycles still leaves much to be desired.
To better understand business cycles in the U.S., this book includes detailed case studies of the Great Depression, postwar recessions, the "new" economy of the 1990s, and the 2001 recession. In addition, this book also covers detailed case studies of international crises in East Asia, Argentina and Japanese. These case studies point to future areas of business cycle research that are still needed before a complete theory of business cycles can be achieved.
“Aggregate Spillovers Magnify the Welfare Benefits of Tax Reform.” with Kenneth J. Matheny. The Canadian Journal of Economics, November 2000, pg. 962-980.
Abstract: We examine aggregate spillovers and their impact on the macroeconomic effects of reducing taxes and government spending. External returns to scale of 10% increase the welfare benefits of tax reform by more than one-third and also increase changes in income by significantly more than a model characterized by constant returns to scale. Plausibly larger aggregate spillovers of 20% increase these welfare benefits by more than three-fourths. In addition, aggregate spillovers significantly reduce the capital tax rates at which tax revenue is maximized. Thus, even small degrees of aggregate spillovers have proportionally large effects on the consequences of tax reform.
“The Size of Government.” Economic Inquiry, January 1999, pg. 103-119.
Abstract: Using an endogenous growth model in which government purchases directly affect aggregate productivity and utility, various fiscal policy experiments conducted here indicate that the macroeconomic effects of changes in fiscal policy are at least as sensitive to the mix of spending cuts as they are to the mix of tax cuts. In fact, reducing the size of the government can actually reduce growth and welfare if reductions in government expenditures are heavily weighted towards reductions in public capital investment or if the proceeds are not used to finance reductions in capital taxation. In addition, across-the-board spending cuts are not likely to significantly improve growth and welfare.
“A Test of Strategic Interaction in Monetary Policy.” with Hugh C. Briggs, III.
Southern Economic Journal, January, 1996. pg. 585-605.
Abstract: Game theoretic treatments of time consistent monetary policy suppose that the monetary authority and the public act strategically and, as a result, that the public’s expectation of the monetary authority’s choice of inflation is at least on average correct. We extend Cukierman and Meltzer’s model of credibility and ambiguity in monetary policy to nest several other models of time consistent monetary policy. We then use a novel data set, the Fed’s expectation of inflation conditional on the money supply it chose, along with the Michigan Survey Research Center data on the public’s inflation expectations to find support for our extension of Cukierman and Meltzer’s model.
Instructor’s Manual for Macroeconomics, by Roger E. Farmer, second edition, 2002
“Aggregate Spillovers, Business Cycles, and the Welfare Effects of Tax Reform”
Midwest Economics Association, March 1996.
“The Macroeconomic Implications of Market Power and the Cyclical Behavior of Profits.”
Midwest Economics Association, March 1997
“Does a Smaller Government Necessarily Increase Growth and Welfare?”
Midwest Economics Association, March 1998”
“The International Costs of Taxation: Beggar Thy Neighbor or the Golden Rule”
Western Economics Association, July 1998
“Market Power and the Benefits of Tax Reform”
Western Economics Association, July 1999
WORK IN PROGRESS
“The International Costs of Taxation: Beggar Thy Neighbor or the Golden Rule?”
Abstract: Using an endogenous growth model that incorporates international trade in intermediate inputs, this study investigates the growth and welfare effects of domestic and foreign changes in import, capital, and labor taxation. Unilateral increases in import tariffs lead to domestic trade surpluses, which increase domestic growth but reduce welfare by more than revenue-equivalent increases in labor taxation. These results indicate that unilateral nationalistic fiscal policies aimed at increasing domestic trade surpluses by increasing import tariffs may not be unambiguously beneficial. However, bilateral reductions in trade barriers can improve both welfare and growth. In addition, the spillover effects of unilateral changes in foreign tax policy can be quite large but also have contradictory effects on domestic growth and welfare.
“Market Power and the Benefits of Tax Reform.”
Abstract: This study quantifies exactly how crucial the existence of monopolistic competition is to the potential benefits of reducing distortionary taxation. Using two models that differ only in regards to the cyclical behavior of profits and its implications regarding net entry and fixed costs, this paper quantifies the welfare benefits of various tax reforms. It is demonstrated that monopolistic competition can either magnify or diminish these welfare benefits as compared to perfectly competitive models. Even small deviations from perfect competition can have proportionally large effects, positive or negative, on the welfare effects of changes in tax rates.
“Business Cycles and the Cyclical Behavior of Profits.”
Abstract: This study investigates the business cycle implications of monopolistic competition. Using two models that differ only in regards to the cyclical behavior of profits and its implications regarding fixed costs and net entry, this paper demonstrates that monopolistic competition can either amplify or diminish the output volatility of an economy, and other cyclical properties of each model also vary substantially. However, both of these monopolistic competition models can mimic U.S. business cycle data as plausibly as a perfectly competitive model. The implications of adding distortionary taxes and money growth shocks to the benchmark model with technology and government spending shocks are also examined.
ACADEMIC HONORS, FELLOWSHIPS, and ASSISTANTSHIPS
McConnell Faculty Development Grant, competitive award 2003, 2007
McConnell Sabbatical Grant, competitive award 2004
Northern Illinois University
Graduate School Research and Artistry Grant, competitive award 1997
Purdue Research Foundation Dissertation Year Fellowship, 1995
Teaching Assistantship 1992-1994
Senior Prize for Outstanding Scholarship in Economics 1991
Miami Alumni Scholarship 1988
Lion’s Club Scholarship 1987
Ohio Academic Scholarship 1987-1991
Teaching Assistantship 1991-1992
UNIVERSITY AND PROFESSIONAL SERVICE
Economics and Business Department Chair 2005-present
Faculty Salary Committee chair 2007-present
Faculty Salary Committee 2003-04, 2005-present
Administration Committee 2003-05,
Berry Center for Economics, Business, and Public Policy 2006-present
Student Symposium Committee Chair 2002-2004
Student Symposium Committee 2000-2002
Faculty Advisor, Phi Kappa Nu Service Fraternity 2006-present
Chair of Academic Regulations Committee 2001-2003
Academic Regulations/ Academic Affairs Committees 2000-2003
Faculty Advisor for Cornell Student Investment Group 2000-2003
Information Technology Advisory Committee 1999-2002
Vice President of Business Affairs Search Committee 2006
Psychology Faculty Search Committee 2000
LACE Committee 1999-2000
Krannert Graduate School of Management
Outstanding Graduate Student Instructor 1993
Krannert Graduate School of Management
Honorable Mention, Outstanding Graduate Student Instructor 1994
OTHER ACADEMIC WORK
Reviewed articles for International Economic Review, Southern Economics Journal, Economic Inquiry.
Reviewed textbooks by the following authors:
Mankiew (Introduction to Economics)
Leeds/Von Allmen/Schiming (Introduction to Economics)
Froyen (Introduction to Economics)
Green and Becker (Econometrics)
Thomas (Money and Banking)
Farmer (Intermediate Macroeconomics)
Miller and VanHoose (Intermediate Macroeconomics)
Barro (Intermediate Macroeconomics).