GRA 6634 Advanced Macroeconomics

GRA 6634 Advanced Macroeconomics

Course code: 
GRA 6634
Course coordinator: 
Alfonso Irarrazabal
Course name in Norwegian: 
Advanced Macroeconomics
Product category: 
MSc in Business - Economics
2017 Autumn
Active status: 
Level of study: 
Teaching language: 
Course type: 
One semester

Macroeconomics is the study of the economy as a whole. This course offers an introduction to advanced macroeconomic analysis. To this end, the course covers both theoretical models as well as empirical facts regarding a wide range of topics, from consumption and investment to economic growth and fiscal policy. The course is also the preparatory course for doing further macroeconomic studies at the graduate level. It is a prerequisite for both GRA 6639 Business Cycles and GRA 6631 Monetary Policy and Financial Stability.

Learning outcomes - Knowledge

The students will learn basic macroeconomic theories and how they are related to advanced topics and policy issues. More specifically, students will gain knowledge about

  1. The main theories of consumption and investment and its empirical relevance. Important topics will include the permanent-income hypothesis, consumption based asset pricing and the Q-theory of investment.
  2. The determinants of long-run growth. Students will understand the main determinants of cross-country income differences observed in the data.
  3. Implications of budget deficits and fiscal policy.
Learning outcomes - Skills

Students will acquire skills that enable them to analyze macroeconomic events and empirical regularities observed in the data. They will be able to understand and critically read information in specialized and popular press.

Students will acquire analytical tools to understand about consumption and investment patterns observed in the data. They will also be able to analyze income differences across countries.

The course enables students to analyze the role of budget deficits and the role of fiscal policy. These skills will allow students to analyze important current events such as US budget deficits or the role of fiscal policy in Norway.

This course is business relevant. The students acquire skills to analyze how the macro economy influences businesses and society in general.

Learning Outcome - Reflection

This course should lead students to reflect about the forces that influence the economy as a whole. Why do some countries grow faster than others? Why do some countries experience recessions and depressions? What is the role of government in mitigating these events?

Furthermore, this course prepares students for more advanced academic work. The course is an introduction to advanced macroeconomics theory.

Course content

Part I: Consumption and investment theories. Quantitative macroeconomics. Romer ch 8 and 9 (selected sections). Obstfeld-Rogoff section 2.5 (selected subsections). Krueger ch. 3-5.

Part II: Economic growth. Romer ch. 1-4 (selected sections) and Obstfeld-Rogoff ch. 7 (selected sections).

Part III: Budget Deficit  and Fiscal Policy. Romer ch. 12 (selected sections).

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.

Software tools
No specified computer-based tools are required.

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.

Exam category: 
Form of assessment: 
Written submission
Support materials: 
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
3 Hour(s)
Written examination with supervision
Exam code: 
Grading scale: 
Examination when next scheduled course
Exam organisation: 
Ordinary examination
Total weight: 
Sum workload: 

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.