Course description

Advanced Macroeconomics


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.

Course content

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

  1. 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.
  2. The determinants of long-run growth. Students will understand the main determinants of cross-country income differences observed in the data.
  3. Numerical Applications.

Exam organisation

  • Written exam: 100%