Dr. Todd A. Knoop

Associate Professor

Department of Economics and Business

Cornell College




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                                

               e-mail: tknoop@cornellcollege.edu






Purdue University (West Lafayette, IN)

         Economics Ph.D.                                                                            Ph.D. July 1996

         Major Fields:    Macroeconomics/Monetary Theory


                                 International Trade                                                   ABD May 1995

         G.P.A.:  3.87



Miami University (Oxford, OH)

         M.A. in Economics                                                                           M.A. Aug. 1992

         G.P.A:  3.72

         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

                        Intermediate 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

                        Intermediate 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





 “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.




Cornell College

      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 University

      Purdue Research Foundation Dissertation Year Fellowship,            1995

               Competitive Award

      Teaching Assistantship    1992-1994


Miami University

      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






Cornell College

      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

            Operations Committee

      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 






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)

      Ashley (Econometrics)

      Ramanathan (Econometrics)

      Green and Becker (Econometrics)

      Thomas (Money and Banking)

      Farmer (Intermediate Macroeconomics)

      Miller and VanHoose (Intermediate Macroeconomics)

      Barro (Intermediate Macroeconomics).