Магистратура
2023/2024
Макроэкономика (продвинутый уровень)
Статус:
Курс по выбору (Экономика и экономическая политика)
Направление:
38.04.01. Экономика
Кто читает:
Департамент теоретической экономики
Где читается:
Факультет экономических наук
Когда читается:
1-й курс, 2, 3 модуль
Формат изучения:
без онлайн-курса
Охват аудитории:
для своего кампуса
Преподаватели:
Веселов Дмитрий Александрович,
Гуленков Илья Васильевич,
Михайлов Дмитрий Андреевич,
Мишин Арсений Олегович
Прогр. обучения:
Экономика и экономическая политика
Язык:
английский
Кредиты:
6
Контактные часы:
90
Course Syllabus
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.
- Names the stylized facts of long-run growth and distinguishes causes of growth from correlates of growth in empirical evidence.
- Derives the Solow equation in intensive form from a neoclassical production function, illustrates transitional dynamics and convergence on a phase diagram, classifies the conditions under which a steady state exists and is unique, and evaluates an economy's saving rate against the golden rule to identify dynamic inefficiency.
- Derives the intertemporal budget constraint and the consumption Euler equation of the two-period Fisher model and solves for optimal consumption and saving under CRRA preferences.
- Solves the canonical two-period OLG model: derives the savings function, the law of motion of capital per worker, and computes the steady-state capital stock.
- Identifies overaccumulation and dynamic inefficiency in the OLG equilibrium, proves that a Pareto improvement is available in that case, and compares the effects of fully funded and pay-as-you-go social security on capital accumulation.
- Formulates the infinite-horizon consumer problem in discrete and continuous time and derives the Keynes–Ramsey rule together with the transversality condition, applying the maximum principle for discounted infinite-horizon problems.
- Illustrates the saddle-path dynamics of the Ramsey model on a phase diagram and predicts the response of consumption, capital per worker and the interest rate to permanent, anticipated and unanticipated productivity shocks and to a change in government spending.
- Derives the steady-state growth rate of productivity and distinguishes the scale effect, the level effect of the research share and the two opposing effects of population growth on productivity growth.
- Compares the Romer expanding-variety model with the one-sector Schumpeterian model of creative destruction, formulates the research arbitrage equation in each, and predicts how equilibrium growth responds to market size, monopoly rents and the degree of product market competition.
Course Contents
- Module 2. Weeks 1-2. Introduction to modern economic growth. Solow-Swan model.
- Adv. Macro. Module 2. Weeks 1-2. Neoclassical Growth Theory: Solow Swan model
- Module 2. Weeks 3-4. Savings and supply of capital: Fisher model and OLG model
- Module 2. Weeks 7-8. Endogenous growth models
- Module 2. Weeks 5-6. Neoclassical Growth Models: Ramsey-Cass-Koopmans model
- Business Cycle. Week 1: Preliminaries
- Business Cycle. Weeks 2-3: Dynamic Programming and Neoclassical Growth Model
- Business Cycle. Weeks 4-5: Real Business Cycle Models (RBC)
- Business Cycle. Week 6: Fiscal Policy in the Real Business Cycle Model
- Business Cycle. Weeks 7-8: New Keynesian Models
- Business Cycle. Weeks 9-10: Macroeconomics of Financial Markets
Assessment Elements
- Attendance and active participation in classesAttendance and active participation in classes
- QuizzesQuizzes on materials of the course
- Mini-test workMini-test work on the base on home assignments.
- Mid-term examMid-term exam on the base of the first part of the course
- Final exam
Interim Assessment
- 2023/2024 3rd module0.2 * Mid-term exam + 0.1 * Quizzes + 0.1 * Mini-test work + 0.3 * Final exam + 0.05 * Attendance and active participation in classes
Bibliography
Recommended Core Bibliography
- Advanced macroeconomics, Romer, D., 2001
- Advanced macroeconomics, Romer, D., 2012
- 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
- Endogenous growth theory, Aghion, P., 1998
- 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 to the new Keynesian framework, Gali, J., 2008
- The ABCs of RBCs : an introduction to dynamic macroeconomic models, McCandless, G., 2008
Recommended Additional Bibliography
- Introduction to modern economic growth, Acemoglu, D., 2009
- Macroeconomic theory : a dynamic general equilibrium approach, Wickens, M., 2008