Macroeconomics is the study of the economy as a whole. This course offers an introduction to advanced macroeconomic analysis. To this end, the course covers both theoretical models as well as empirical facts regarding a wide range of topics, from consumption and investment to economic growth. The course is also the preparatory course for doing further macroeconomic studies at the graduate level. It is a prerequisite for both GRA 6639 Business Cycles and GRA 6631 Macroeconomic Policy.
Part I: Consumption and investment theories. Quantitative macroeconomics. Romer ch 8 and 9 (selected sections). Obstfeld-Rogoff section 2.5 (selected subsections). Krueger ch. 3-5.
Part II: Economic growth. Romer ch. 1-4 (selected sections) and Obstfeld-Rogoff ch. 7 (selected sections).
Part III: Numerical Applications.
Learning outcome knowledge
The students will learn basic macroeconomic theories and how they are related to advanced topics and policy issues. More specifically, students will gain knowledge about
- The main theories of consumption and investment and its empirical relevance. Important topics will include the permanent-income hypothesis, consumption based asset pricing and the Q-theory of investment.
- The determinants of long-run growth. Students will understand the main determinants of cross-country income differences observed in the data.
- Numerical Applications.
- Written exam: 100%