Wickens, Macroeconomic theory
and Notes by the teacher
Learning Objectives
Advanced macroeconomics
The objective of the course is to understand key reasoning about the fundamental macroeconomic questions (what affects growth? what determines and propagates the business cycle? what is the impact of fiscal and monetary policy? how international interactions affect the answers to these questions), develop the main dynamic theories developed in macroeconomics and learn how to use them
Prerequisites
Microeconomics, macroeconomics and advanced microeconomics
Teaching Methods
Classes and homeworks
Further information
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Type of Assessment
Written exam
Course program
1) Microfoundations of macroeconomics:
a) review of consumer behavior and theory of general equilibrium under perfect and monopolistic competition (Dixit-Stiglitz model)
b) review of technology and firms’ behavior in general equilibrium and trade
c) review of decisions under uncertainty and the role of expectations
2) Growth: foundations of the neoclassical growth model of Solow, sources of endogenous growth, the Romer model of innovation and its applications and impact of increasing population
3) Consumption and investment theory: foundations of dynamic optimization of consumers and firms and applications to overlapping generations models and Ramsey model
4) Business Cycles: foundations of the basic real business cycle model, its extensions and its application to open economies
5) New-Keynesian theory: microfoundations of sticky price models and development of the canonical dynamic stochastic general equilibrium model
6) Macroeconomic policy: the role of monetary and fiscal policy in neoclassical and New-Keynesian models, time-consistency issues and optimal monetary and fiscal policy
7) Selected topics:
a) principles of macroeconomic estimation (calibration, structural estimation and Bayesian estimation),
b) imperfections in labor, credit and goods markets,
c) political economy of macroeconomics,
d) macroeconomic impact of pandemics