DRE 4007 Advanced Macroeconomics

APPLIES TO ACADEMIC YEAR 2016/2017

DRE 4007 Advanced Macroeconomics


Responsible for the course
Alfonso Irarrazabal

Department
Department of Economics

Term
According to study plan

ECTS Credits
6

Language of instruction
English

Introduction


    Learning outcome
    This course is an introduction macroeconomic theory. It is also about tools and techniques used in advanced research in macroeconomics.
    The course consists of three parts. The first part gives the students an introduction to modern growth theory. We will cover the three models used in modern growth theory. Emphasis will be provided in terms of the microfoundations of these models.The topic of the second part is equilibrium macroeconomics models. We will start with the main results in recursive macroeconomics models including an introduction to dynamic programming.
    Then, we will review the main theories of consumption, investment and labor markets. The third topic is business cycle. We will start describing the standard real business cycle model. Then, we will cover the monetary models of business cycle. We will explore issue related to the non-neutrality of money using modern dynamic stochastic equilibrium models (DSGE) framework.

    Prerequisites
    Admission to a PhD Programme is a general requirement for participation in PhD courses at BI Norwegian Business School.

    External candidates are kindly asked to attach confirmation of admission to a PhD programme when signing up for a course with the doctoral administration. Other candidates may be allowed to sit in on courses by approval of the courseleader. Sitting in on courses does not permit registration for courses, handing in exams or gaining credits for the course. Course certificates or confirmation letters will not be issued for sitting in on courses.

    Compulsory reading
    Books:
    Acemoglu, D. 2009. An Introduction to Modern Economic Growth. Princeton University Press
    Miao, J. 2014. Economic Dynamics in Discrete Time. The MIT press

    Articles:
    A complete list of articles will be handed out at the beginning of the course

    Other:
    During the course there may be hand-outs and other material on additional topics relevant for the course and the examination


    Recommended reading
    Books:
    Ljungqvist, Lars and Thomas J. Sargent. 2012. Recursive macroeconomic theory. 3rd ed. MIT press

    Course outline
    Growth theory
    Neoclassical growth
    Endogenous growth
    Overlapping generation models
    Problem set 1

    Equilibrium models
    Dynamic programming
    Consumption theory
    Investment theory
    Search theory
    Problem set 2

    Business cycle and topics
    Real business cycle
    Monetary models
    Topics: irreversibility
    Problem set 3

    Computer-based tools


    Learning process and workload
    Course structure and grading
    There will be 10 lectures, 5 lectures on each part. Students are required to participate in class – both in discussions and by presenting models/material from the reading lists – as well as solve and hand in solutions to exercises and problems.

    Workload (6 ECTS)
    Lectures, 30 hours
    Specified learning activities (including reading), 60 hours
    Autonomous student learning (including exam preparation), 90 hours

    Total 180 hours



    Examination
    3 hour written exam.
    The exam will be graded with pass/fail.
    Examination code(s)
    DRE 40073 written exam will account for 100% of the grade

    Examination support materials
    BI approved exam calculator.

    Re-sit examination
    Re-takes are only possible at the next time a course will be held. When the course evaluation has a separate exam code for each part of the evaluation it is possible to retake parts of the evaluation. Otherwise, the whole course must be re-evaluated when a student wants to retake an exam.

    Additional information
    Honour Code
    Academic honesty and trust are important to all of us as individuals, and represent values that are encouraged and promoted by the honour code system. This is a most significant university tradition. Students are responsible for familiarizing themselves with the ideals of the honour code system, to which the faculty are also deeply committed.

    Any violation of the honour code will be dealt with in accordance with BI’s procedures for cheating. These issues are a serious matter to everyone associated with the programs at BI and are at the heart of the honor code and academic integrity. If you have any questions about your responsibilities under the honour code, please ask.

    Semesters

    Translations