BST 1612 Applied Macroeconomics

BST 1612 Applied Macroeconomics

Course code: 
BST 1612
Department: 
Economics
Credits: 
15
Course coordinator: 
Hans-Martin Straume
Product category: 
Bachelor
Portfolio: 
Bachelor Specialisations HSØA
Semester: 
2019 Autumn
Active status: 
Active
Teaching language: 
Norwegian
Course type: 
One semester
Introduction

In combination with BTH 1613 Bachelor Thesis, Applied Macroeconomics (15 credits) this course will constitute a specialization of 30 credits. It will be stated on the diploma that it is a specialization. It applies to students on the Bachelor Programme in Business Administration. The course may also be chosen by other students as an elective in their third year of study.

Macroeconomics is the study of a country’s economy as a whole and the international relationships between countries. The discipline deals with phenomena such as long-term economic growth and sustainability, inequality, cyclical movements, financial instability, unemployment, price rise and current external account deficits or surpluses. Analyses of how the authorities may influence the macroeconomic development through fiscal and monetary policies form a central element in this course.

Learning outcomes - Knowledge

The course is intended to provide the students with an insight into macroeconomic mechanisms and relations that are important to the Norwegian economy and Norwegian politics both in the short and long term. There will be an emphasis on the interaction between financial markets, monetary and fiscal policies and business cycles. The monetary policy of Norges Bank and fiscal policy issues will form central elements. Through the discussion of important and relevant macroeconomic problems such as macroeconomic instability, financial crises, the use of oil revenues, the great increase in the number of elderly people and economic globalisation, economic growth and sustainability, etc., the course places an emphasis on linking theoretical insight to important macroeconomic phenomena and development features.

The course places an emphasis on econometric methods and digital tools for the analysis of cyclical data, and on making forecasts based on estimated model contexts. Thus, the course provides an introduction to time series econometrics and relevant software.

On completion of the course the students shall have an understanding of:

  • The interaction between the real economy, the money market, the currency market and the labour market, and in this context be able to account for potential effects of the economic policy related to central variables such as aggregate production, unemployment, inflation, the current balance and the balance of trade.
  • The meaning and importance of financial stability and familiarity with the measures the authorities may implement to preserve financial stability.
  • Central driving forces for economic growth and sustainability and an ability to account for how the long-term growth path is affected by underlying factors such as savings rate and growth in total factor productivity.
  • Short-term and long-term effects of the use of oil revenues in the Norwegian economy, as well as an insight into fundamental problems related to public budgets and pensions.
Learning outcomes - Skills
  • The students are to be able to find macroeconomic data and perform empirical analyses of these data on their own.
  • The students are to be able to discuss macroeconomic problems by means of various model-based approaches and as part of this be able to account for strengths and weaknesses in connection with different macroeconomic models.
General Competence

The students shall have an ethical awareness of the basic conflicts of interests and goal conflicts related to economic policy, including the goal conflict between efficiency and income equality.
The students shall be able to assess a macroeconomic problem from different angles with respect to the economic interests of various groups.
The students are to develop a critical sense regarding possible divergences between stated political goals and ambitions and the probable actual effects of economic policies.

Course content
  • Macroeconomic data sources
  • Economic growth and sustainability. Inequality and growth.
  • Financial markets. Asset bubbles and financial crises in an international perspective.
  • Financial stability
  • Business cycle theory
  • Fiscal policy
  • Monetary policy
  • Saving, national wealth and fiscal policy. Sustainable public debt.
  • Oil wealth and industry structure
  • Applied econometrics
Teaching and learning activities

The course consists of 90 hours of module-based teaching.

Software tools
R
Stata
Qualifications

Two years of college education in business administration or equivalent.

Required prerequisite knowledge

MET 3431 Statistics or MET 2920 Statistics

MET 3590/MET 3592 Econometrics, MET 2123 Method and Data Analysis or MET 3515 Mathematical Analysis

SØK 3520 Microeconomics

SØK 3525 Macroeconomics

Alternatively, equal knowledge from another educational institution may be accepted.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
BST16121
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
Examination when next scheduled course
100Yes5 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
Individual
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:100
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
Duration:5 Hour(s)
Comment:
Exam code:BST16121
Grading scale:ECTS
Resit:Examination when next scheduled course
Type of Assessment: 
Ordinary examination
Total weight: 
100
Workload activityDurationType of durationComment student effort
Teaching90Hour(s)
Prepare for teaching225Hour(s)
Group work / Assignments80Hour(s)
Examination5Hour(s)
Expected student effort:
Workload activity:Teaching
Duration:90 Hour(s)
Comment:
Workload activity:Prepare for teaching
Duration:225 Hour(s)
Comment:
Workload activity:Group work / Assignments
Duration:80 Hour(s)
Comment:
Workload activity:Examination
Duration:5 Hour(s)
Comment:
Sum workload: 
400

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 15 ECTS credit corresponds to a workload of at least 400 hours.