GRA 6639 Business Cycles

GRA 6639 Business Cycles

Course code: 
GRA 6639
Department: 
Economics
Credits: 
6
Course coordinator: 
Hilde Christiane Bjørnland
Product category: 
Master
Portfolio: 
MSc in Business - Economics
Semester: 
2018 Spring
Active status: 
Active
Teaching language: 
English
Course type: 
One semester
Introduction

This course is a graduate level course in macroeconomics, allowing theory to meet data. A special focus is on economic fluctuations and policies. To that end, the approach adopted emphasizes the dynamic dimension of interesting applied macroeconomic problems.

Learning outcomes - Knowledge

This course is organized in a sequence of topics, where we address each topic in detail using both theory and applied methods. The empirical relevance of the different theories will be critically assessed. The course focuses on economic fluctuations in open economies, covering topics such as (i) the stylized facts of business cycles and the role of different shocks in the cycle, (ii) advanced theories of the business cycles (models og the real business cycle and New Keynesian models) (iii) the role of monetary and fiscal policy in the business cycle, (iv) commodities and macroeconomics

Learning outcomes - Skills

The students will be able to understand drivers of economic fluctuations and the role of economic policy. They should be able to understand the challenging and relevant macroeconomic problems in the real world.

Learning Outcome - Reflection

The students will be exposed to current macroeconomic theories and their implications for understanding key macroeconomic policy issues.

Course content

1. Stylized facts of business cycles

  • •Measuring business cycles (trend - cycles)
  • •The role of leading indicators
  • Sentiment index (Big data)
  • •Sources of business cycles, a story of different shocks

2. Advanced theories of business cycles (quantitative macroeconomics)

  • • Real Business Cycle models
  • • Can economic fluctuations be explained by technology shocks?

3. New Keynesian models and monetary and fiscal policy

  • • New Keynesian Phillips curve
  • • Taylor rules
  • Monetary and fiscal policy

4. Commodities and macroeconomics

  • • The role of oil price shocks for oil importing and exporting countries
  • • Optimal policy for resource rich economies
Learning process and requirements to students

Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class that is not included on the course homepage/It's learning or text book.

This is a course with continuous assessment (several exam components) and one final exam code. Each exam component is graded by using points on a scale from 0-100. The components will be weighted together according to the information in the course description in order to calculate the final letter grade for the examination code (course). Students who fail to participate in one/some/all exam elements will get a lower grade or may fail the course. You will find detailed information about the point system and the cut off points with reference to the letter grades when the course start.

At resit, all exam components must, as a main rule, be retaken during next scheduled course.

Software tools
No specified computer-based tools are required.
Qualifications

All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.

Required prerequisite knowledge

GRA 6634 Advanced Macroeconomics or equivalent

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Activity
Form of assessment:
Presentation
Exam code:
GRA66394
Grading scale:
Point scale
Grading rules:
Internal examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
20No -Group (4 - 6)
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA66394
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
80Yes3 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Individual Final written examination with supervision
Exams:
Exam category:Activity
Form of assessment:Presentation
Weight:20
Invigilation:No
Grouping (size):Group (4-6)
Support materials:
Duration: -
Comment:
Exam code:GRA66394
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:80
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Duration:3 Hour(s)
Comment:Final written examination with supervision
Exam code:GRA66394
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam organisation: 
Continuous assessment
Grading scale: 
ECTS
Total weight: 
100
Talis literature

Obligatorisk/Compulsory

Book
Authors/Editors År Tittel Edition Publisher StudentNote
Krueger, Dirk 2011 Quantitative Macroeconomics: An Introduction     chpt. 1-11
Rabanal, Pau; Galí, Jordi 2005 Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S. Data?   International Monetary Fund  
King, Robert G.; Rebelo, Sergio T. February 2000 Resuscitating Real Business Cycles      
Chapter
Authors/Editors År Tittel Journal Edition Publisher StudentNote
Romer, David H. cop. 2012 Advanced macroeconomics Advanced macroeconomics 4th ed McGraw-Hill/Irwin  
Bjørnland, Hilde Christiane; Thorsrud, Leif Anders 2015 Applied time series for macroeconomics Applied time series for macroeconomics 2. utg Gyldendal akademisk Ch. 5, 8
Article
Authors/Editors År Tittel Edition Publisher StudentNote
Bjørnland, Hilde Christiane 2000 Detrending methods and stylized facts of business cycles in Norway - an international comparison      
Galí, Jordi; López-Salido, J. David; Vallés, Javier 2007 Understanding the Effects of Government Spending on Consumption      
Bjørnland, Hilde C.; Thorsrud, Leif Anders 2015 Boom or gloom? Examining the Dutch disease in two-speed economies      
Document
Authors/Editors År Tittel Edition Publisher StudentNote
    Collection of articles      
    During the course there may be hand-outs and other material on additional topics relevant for the course and the examination.      

Anbefalt/Recommended

Article
Authors/Editors År Tittel Edition Publisher StudentNote
Bjørnland, Hilde C.; Leitemo, Kai 2009 Identifying the interdependence between US monetary policy and the stock market      
Lawrence Christiano 2011 When Is the Government Spending Multiplier Large?      
Kydland, F. 1990 Business cycles : real facts and a monetary myth      
Plosser, Charles I Summer 1989 Understanding Real Business Cycles      
Romer, Christina D. 1999 Changes in Business Cycles: Evidence and Explanations.