{"ModuleCode":"EC5102","ModuleTitle":"Macroeconomic Theory","Department":"Economics","ModuleDescription":"This course is designed to provide modern macroeconomic models which are essential in the study of economics at the graduate level. Three main parts of the course are growth theory, business cycle models, and the investigations of certain components in the aggregate demand. Topics under each part are wide-ranging: the Solow model, the infinite horizon model, overlapping generations model, and endogenous growth models are covered for the growth part. The business cycle models deal with real business cycles, the Lucas model, and New Keynesian models. Finally, consumption, consumption-based asset pricing models and investment are studied for the aggregate demand components.","ModuleCredit":"4","Workload":"2-1-0-4-3","ExamDuration":"P2H","ExamVenue":"MPSH6","AcadYear":"2015/2016","History":[{"Semester":1,"ExamDate":"2015-11-24T17:00+0800","Timetable":[{"ClassNo":"1","LessonType":"Sectional Teaching","WeekText":"Every Week","DayText":"Wednesday","StartTime":"0900","EndTime":"1200","Venue":"AS7-0102"}],"IVLE":[{"Announcements":null,"Forums":[],"Workbins":[],"Webcasts":[],"Gradebooks":[],"Polls":[],"Multimedia":[],"LessonPlan":[],"ID":"d1a32c59-f27a-415d-83d0-71de20d85a6e","CourseLevel":"1","CourseCode":"EC5102","CourseName":"MACROECONOMIC THEORY","CourseDepartment":"","CourseSemester":"Semester 1","CourseAcadYear":"2015/2016","CourseOpenDate":"/Date(1432742400000+0800)/","CourseOpenDate_js":"2015-05-28T00:00:00","CourseCloseDate":"/Date(1449331140000+0800)/","CourseCloseDate_js":"2015-12-05T23:59:00","CourseMC":"0","isActive":"Y","Permission":"S","Creator":{"UserID":null,"Name":"Zhang Jie","Email":null,"Title":null,"UserGuid":"477fc160-35a5-4921-9986-4c5eac64adc4","AccountType":null},"hasGradebookItems":false,"hasTimetableItems":true,"hasGroupsItems":false,"hasClassGroupsForSignUp":false,"hasGuestRosterItems":true,"hasClassRosterItems":false,"hasWeblinkItems":false,"hasLecturerItems":true,"hasDescriptionItems":true,"hasReadingItems":false,"hasAnnouncementItems":false,"hasProjectGroupItems":false,"hasProjectGroupsForSignUp":false,"hasConsultationItems":false,"hasConsultationSlotsForSignUp":false,"hasLessonPlanItems":false,"Badge":0,"BadgeAnnouncement":0,"WebLinks":[],"Lecturers":[{"ID":"9433bbda-30bd-4b09-bf08-9a1b32e649e8","User":{"UserID":null,"Name":"Zhang Jie","Email":null,"Title":null,"UserGuid":"477fc160-35a5-4921-9986-4c5eac64adc4","AccountType":null},"Role":"Lecturer ","Order":1,"ConsultHrs":null}],"Descriptions":[{"ID":"1e5f053b-8835-4692-be49-41f07234cfff","Title":"Learning Outcomes","Description":"This course is designed to provide modern macroeconomic models at the graduate level. We will analyze the general equilibrium foundations and the two welfare theorems, infinitely lived representative agent models, the overlapping-generations model, and models with incomplete markets and risk sharing. We will concentrate on dynamic optimization in both discrete and continuous time. The models will be used to study growth theory, business cycles, certain components of aggregate demand, and monetary and fiscal policies.
\n","Order":1},{"ID":"2e5f053b-8835-4692-be49-41f07234cfff","Title":"Prerequisites","Description":"EC4102 or equivalent","Order":2},{"ID":"3e5f053b-8835-4692-be49-41f07234cfff","Title":"Teaching Modes","Description":"This course is a lecture-tutorial format. At least two hours weekly will be devoted to lectures. Practice questions or assignments will be given weekly, starting from Week 3. One hour tutorial will be offered when students finish a practice. ","Order":3},{"ID":"4e5f053b-8835-4692-be49-41f07234cfff","Title":"Schedule","Description":"(1) Dynamic Programming and Other Techniques for Dynamic Optimization in Discrete Time (Weeks 1 and 2)
\n(2) General Equilibrium Foundations and the Two Welfare Theorems; Competitive and Recursive Competitive Equilibrium in Dynamic Models; the Neoclassical Growth Model (Weeks 3 and 4)
\n(3) The Overlapping Generations Model (Week 5)
\n(4) Continuous-Time Dynamic Optimization: the Maximum Principle; the Ramsey-Cass-Koopmans neoclassical growth models; Endogenous Growth Models (Weeks 6 and 7)
\n(5) Uncertainty: Models with Complete and Incomplete Markets and Risk Sharing (Week 8)
\n(6) Real Business Cycles (Week 9)
\n(7) Consumption (Week 10)
\n(8) Investment (Week 11)
\n(9) Inflation and Monetary Policy (Week 12)
\n(10) Budget Deficit and Fiscal Policy (Week 13) ","Order":4},{"ID":"6e5f053b-8835-4692-be49-41f07234cfff","Title":"Syllabus","Description":"Lecture Notes:
\n\n\t- \n\t\tJeremy Greenwood (2001) “Lecture Notes on Dynamic Competitive Analysis,” Mimeo. University of Pennsylvania.
\n\t- \n\t\tDirk Krueger (2007) “Macroeconomic Theory,” Mimeo. University of Pennsylvania.
\n\t- \n\t\tPer Krusell (2007) “Real Macroeconomic Theory,” Mimeo. Princeton University.
\n
\n
\nThese and other lecture notes are available from: http://www.econphd.net/notes.htm
\n
\nTextbooks:
\n\n\t- \n\t\tC. Azariadis (1993) “Intertemporal Macroeconomics,” Blackwell.
\n\t- \n\t\tR.J. Barro and X. Sala-i-Martin (1995) "Economic Growth," McGraw-Hill
\n\t- \n\t\tO. Blanchard and S. Fischer (1989) “Lectures on Macroeconomics,” MIT Press.
\n\t- \n\t\tR.A. Dana and C. Le Van (1992) “Dynamic Programming in Economics,” Kluwer.
\n\t- \n\t\tD. Romer (2005) “Advanced Macroeconomics, 3rd Ed.” McGraw Hill.
\n\t- \n\t\tN. Stokey and R. Lucas (1989) “Recursive Methods in Economic Dynamics,” Harvard University Press.
\n
\n
\nDynamic Optimization References:
\n\n\t- \n\t\tM.R. Caputo (2005) “Foundations of Dynamic Economic Analysis,” Cambridge University Press.
\n\t- \n\t\tA.C. Chiang (1992) “Elements of Dynamic Optimization,” McGraw-Hill.
\n\t- \n\t\tA. Dixit (1990) “Optimization in Economic Theory,” Oxford University Press.
\n\t- \n\t\tM. Intriligator (1971) “Mathematical Optimization and Economic Theory,” Englewood Cliffs.
\n\t- \n\t\tN. Stokey and R. Lucas (1989) “Recursive Methods in Economic Dynamics,” Harvard University Press.
\n\t- \n\t\tR. Sundaram (1996) “A First Course in Optimization Theory,” Cambridge University Press.
\n
\n
\n
\nSyllabus
\n(1) Dynamic Programming and Other Techniques for Dynamic Optimization in Discrete Time (Weeks 1 and 2)
\nKrusell, Ch. 3
\nKrueger, Ch. 5
\nStokey and Lucas, Ch. 3, Ch. 4 (more advanced)
\n(2) General Equilibrium Foundations and the Two Welfare Theorems; Competitive and Recursive Competitive Equilibrium in Dynamic Models; the Neoclassical Growth Model (Weeks 3 and 4)
\nKrueger, Chs. 2, 3, 7
\nKrusell, Ch. 5
\n(3) The Overlapping Generations Model (Week 5)
\nKrueger, Ch. 8
\nKrusell, Ch. 7
\nRomer, Ch. 2, Part B
\nBalasko, Y., Shell, K., 1980. "The overlapping-generations model, I: The case of pure exchange without money." Journal of Economic Theory 23, 281-306.
\n(4) Continuous-Time Dynamic Optimization: the Maximum Principle; the Ramsey-Cass-Koopmans neoclassical growth models; Endogenous Growth Models (Weeks 6 and 7)
\nBarro and Sala-i-Martin, Ch. 2, Appendix 1.3
\nKrueger, Ch. 9
\nAghion, P., Howitt, P., 1992. "A model of growth through creative destruction." Econometrica 60, 323-351.
\nLucas, R.E., Jr., 1988. "On the mechanics of economic development." Journal of Monetary Economics 22, 3-42.
\nRomer, P.M., 1986. "Increasing returns and long-run growth." Journal of Political Economy 94, 1002-1037.
\n(5) Uncertainty: Models with Complete and Incomplete Markets and Risk Sharing (Week 8)
\nKrueger, Ch. 6
\nKrusell, Ch. 6
\n(6) Real Business Cycles (Week 9)
\nKrueger, Ch. 6
\nRomer, Ch. 4
\nGreenwood, J., Hercowitz, Z., Huffman, G.W., 1988. "Investment, capacity utilization, and the real business cycle." American Economic Review 78 (3), 402-417.
\nKydland, F.E., Prescott, E.C., 1982. "Time-to-build and aggregate fluctuations." Econometrica 50, 1345-1370.
\n(7) Consumption (Week 10)
\nRomer, Ch. 7, and possibly other readings as well
\n(8) Investment (Week 11)
\nRomer, Ch. 8, and possibly other readings as well
\n(9) Inflation and Monetary Policy (Week 12)
\nRomer, Ch. 10
\nHo, W., Zeng, J., Zhang, J., 2007. "Inflation taxation and welfare with externalities and leisure." Journal of Money, Credit and Banking 39 (1), 105-131.
\n(10) Budget Deficit and Fiscal Policy (Week 13)
\n Romer, Ch. 11
\nChari, V.V., Christiano, L.J., Kehoe, P.J., 1994. "Optimal fiscal policy in a business cycle model." Journal of Political Economy 102, 617-652.
\nZhang, J., Davies, J., Zeng, J., McDonald, S., 2008. "Optimal taxation in a growth model with public consumption and home production." Journal of Public Economics 92, 885-896.
\n ","Order":6},{"ID":"8e5f053b-8835-4692-be49-41f07234cfff","Title":"Assessment","Description":"Assignments (50%); Final Examination (50%)","Order":8},{"ID":"0eab79c9-f37f-4ad1-acce-8e3991d6fd56","Title":"Workload","Description":"2-1-0-4-3","Order":9}],"ReadingFormatted":[],"ReadingUnformatted":[]}],"Lecturers":["Zhang Jie"],"LecturePeriods":["Wednesday Morning"]}]}