Advanced Macroeconomics DEC53806 - 6 ECTS

This is an advanced course which is part of the WASS graduate programme aimed at students in the MSc programmes MME, MID, MDR and MCH. This course aims to provide training in modern advanced macroeconomic theory and gives students a thorough understanding of some fundamental workhorse models in macroeconomics used to deal with economic problems. The course is divided in two parts. The first part is dedicated to economic growth and tries to explain income differences across countries. The growth models discussed are the Solow economic growth model, the endogenous growth model and growth models with human capital and natural resources. The second part of the course deals with business cycle fluctuations. The main problem dealt with in this part of the course is the trade-off between inflation and unemployment and the consequences for economic output in the short run. Besides, we discuss if governments are capable to stabilize the economy in the short run using fiscal or monetary policy. The course applies the learned theories to relevant research themes for the WUR such as natural resources, land use, climate change and food.

Learning outcomes

After successful completion of this course students are expected to be able to:

• analyse and evaluate the most fundamental workhorse models in macroeconomics to explain structural income differences among countries
• analyse and evaluate the most fundamental workhorse models in macroeconomics to explain business cycle fluctuations
• evaluate state-of-the-art (applied) macroeconomic literature in a broad range of relevant monetary and fiscal policy issues
• evaluate applied macroeconomic issues related to WUR core themes (e.g., natural resources, agriculture, climate etc)
• applying mathematical methods for solving the analytical macroeconomic models and interpreting the econometric results base on them

Activities

There are three classes each lecture week except the last one. The first two of each three classes in a lecture week are combined lecture and tutorial, whereas the third class is reserved for tutorials only. The last lecture week contains an overview lecture.

Assumed Knowlegde

DEC-22306 Macroeconomics & Policy and DEC-21806 Macroeconomics and International Trade or equivalent courses.

Examination

Written exam

Literature

Birch Sorensen, Peter; Whitta-Jacobsen, Hans Jorgen. (2011). Introducing Advanced Macroeconomics: Growth and Business Cycles. 2nd edition, McGraw-Hill.
Reader with journal articles.