Кто читает:: Департамент теоретической экономики

Статус:: Курс по выбору

Когда читается:: 1-й курс, 2, 3 модуль

Преподаватели

Веселов Дмитрий Александрович

Гуленков Илья Васильевич

Мишин Арсений Олегович

Шелованова Татьяна Ивановна

Full Syllabus Ask Question

Abstract

This course is a master’s level course on Macroeconomic theory. It aims to instill a firm understanding of the language of modern macroeconomics. Macroeconomics addresses “big” questions by asking: Why do economies grow over time, and what factors do determine the speed of economic growth? Why do we have business cycles, and how should monetary and fiscal policies react to short-run fluctuations? The course will seek the answers to these questions by applying modern tools to the analysis of macroeconomic processes.The evolution of total output can be conceptually decomposed into a long-term trend and business-cycles around this trend. Macroeconomists have developed two distinct groups of theories (e.g. employing different sets of assumptions) depending on whether they are interested in explaining the short-run dynamics or the long-run dynamics in the economy. Similarly, this course is divided into two parts.The first part of the course is devoted to the process of trend-growth in output per capita. It offers an overview of a range of standard growth models by looking at their theoretical relevance and empirical success in explaining different aspects of the process of long-run economic growth and the emergence of income differences across countries. The second part of the course is devoted to the issues in a short-run macro. It presents basic theories of business cycle fluctuations with reference to the conduct of macroeconomic policies. The primary focus is on the main tools that are used for construction of business cycle models and their application to fiscal and monetary policies.

Learning Objectives

To provide students with the stylized facts about economic growth and business cycle and the main questions macroeconomists try to address
To present basic theories of economic growth and business cycle
Introduce students to core concepts and standard methodological tools that lay the foundation of modern macroeconomic analysis

Expected Learning Outcomes

Critically evaluate the logic behind modern approach to Macroeconomics.
Show the role of heterogeneity and risk-sharing.
Apply the Lagrangian method to solve models without production.
Construct the Bellman equation to solve both finite and infinite horizon deterministic models.
Construct the Bellman equation to solve stochastic problems.
Differentiate between state and control variables.
Derive model's equations, compute the solution to the RBC model, perform model's calibration and simulation.
Apply Dynare to quantitative work with basic macroeconomic models.
Solve basic macroeconomic models numerically.
Learn how to introduce fiscal policy into the RBC set up and evaluate its effects on the main results.
Learn how to introduce sticky prices into the RBC set up and evaluate the effects of monetary policy on aggregate variables.
Introduce the main ideas and approaches of modeling the financial sector in macroeconomic models.
Illustrate the mechanisms of how financial crises spill over to the real economy.
At the end of the course, students are expected to show an awareness of the main debates and approaches in the literature on economic growth and business cycle that will help them decide on the direction of their future research.
At the end of the course, students are expected to show a basic understanding of the workings of standard macroeconomic models that will enable them to learn and work with more advanced models in the future.

Course Contents

Adv.Macro Module 2. Week 1. Introduction to economic growth
Adv. Macro. Module 2. Weeks 1-2. Neoclassical Growth Theory: Solow Swan model
Adv. Macro. Module 2. Week 3-4. Overlapping Generations (OLG) Models
Adv. Macro. Module 2. Week 5-6. Neoclassical growth models: Ramsey model.
Adv. Macro. Module 2. Week 7-8. Endogenous Growth Theory. Technological transfer and cross-country convergence.
Adv. Macro. Module 3. Week 1 (No Dynare): Preliminaries and a two-period consumption-saving model
Adv. Macro. Module 3. Week 2 (No Dynare): A two-period competitive model with production
Adv. Macro. Module 3. Weeks 3-4 (No Dynare): Dynamic programming with applications to the Neoclassical Growth Model
Adv. Macro. Module 3. Week 5 (No Dynare): Real Business Cycle Model (RBC)
Adv. Macro. Module 3. Week 6 (No Dynare): Fiscal policy in the RBC model
Adv. Macro. Module 3. Weeks 7-8 (No Dynare): Nominal prices, money, and New Keynesian model

Assessment Elements

Attendance and active participation in classes
Quizzes
Mid-term exam
Mini-test work
Final Exam
Home Assignment

Interim Assessment

2024/2025 3rd module
0.05 * Attendance and active participation in classes + 0.05 * Attendance and active participation in classes + 0.4 * Final Exam + 0 * Home Assignment + 0 * Home Assignment + 0.2 * Mid-term exam + 0.075 * Mini-test work + 0.075 * Mini-test work + 0.075 * Quizzes + 0.075 * Quizzes

Bibliography

Recommended Core Bibliography

Campbell, J. (1994). Inspecting the Mechanism: An Analytical Approach to the Stochastic Growth Model. Scholarly Articles. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.hrv.faseco.3196342
Dynamic macroeconomics, Alogoskoufis, G., 2019
Introduction to modern economic growth, Acemoglu, D., 2009
King, R. G., & Rebelo, S. T. (1999). Resuscitating real business cycles. Handbook of Macroeconomics, 927. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.h.eee.macchp.1.14
Lucas, R., Jr. (1976). Econometric policy evaluation: A critique. Carnegie-Rochester Conference Series on Public Policy, (1), 19. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.crcspp.v1y1976ip19.46
Mankiw, N. G. (1990). A Quick Refresher Course in Macroeconomics. Journal of Economic Literature, (4), 1645. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.aea.jeclit.v28y1990i4p1645.60
Mark Gertler, Jordi Gali, & Richard Clarida. (1999). The Science of Monetary Policy: A New Keynesian Perspective. Journal of Economic Literature, (4), 1661. https://doi.org/10.1257/jel.37.4.1661
Monetary policy, inflation, and the business cycle : an introduction tj the New Keynesian framework and its applications, Gali, J., 2015
The ABCs of RBCs : an introduction to dynamic macroeconomic models, McCandless, G., 2008

Recommended Additional Bibliography

Macroeconomic theory : a dynamic general equilibrium approach, Wickens, M., 2008
Recursive macroeconomic theory, Ljungqvist, L., 2012
Recursive methods in economic dynamics, Stokey, N.L., 1989

Authors

ARBATLI Dzhemal Eren
GULENKOV ILYA VASILEVICH
Mishin Arsenii Olegovich
Мальбахова Диса Анзоровна
VESELOV DMITRIY ALEKSANDROVICH

Магистерская программа «Экономика и экономическая политика»

Macroeconomics (Advanced Level-2)