The module aims to develop the skills and knowledge of macroeconomics necessary for a career as an academic economist and in all areas where advanced research skills in economics are required. Specifically, it aims to teach the students to understand, appreciate, and ultimately contribute to, frontier research. It is intended to be comparable to modules taught in the best research universities in the USA and elsewhere in Europe.
Principal Learning Outcomes
Have a good overview and a thorough understanding of macroeconomic theory; Develop a critical knowledge of recent research in some key areas of macroeconomics; Enable students to pursue their own research agenda in the field.
The module will typically cover the following topics:
Consumption and Investment. Topics: Intertemporal decisions, PIH, LCH, consumption under uncertainty, CEQ, CCAPM, equity premium puzzle, precautionary savings, liquidity constraints, Tobin’s q-theory, irreversible investment. Methods: Dynamic optimization under uncertainty (optimal control, dynamic programming, stochastic dynamic programming) in discrete time.
Economic Growth. Topics: Growth accounting, neoclassical growth model, endogenous growth, poverty traps. Methods: Dynamic optimization in discrete or in continuous time, phase diagrams, OLG models.
Business Cycles. Topics: RBC models, determination of employment and real wages, welfare costs of fluctuations, taxation and efficiency, new Keynesian models, monetary policy. Methods: Calibration and simulation, solving rational expectations models, Blanchard-Kahn conditions, Dynare, structural VARs.
Markets with Frictions. Topics: Labour market frictions and unemployment, financial frictions.
- Assessment Method
- 100% assessment
- Coursework Details
- 2 x 3 hour class tests of 50% each
- Exam Timing
Time Allowed: 3 Hours
Answer ALL questions.
Use a separate answer booklet for each section.
Approved pocket calculators are allowed.
Read carefully the instructions on the answer book provided and make sure that the particulars required are entered on each answer book.
Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.