Checking date: 17/04/2024


Course: 2024/2025

Macroeconomics I
(12269)
Master in Economics (Plan: 318 - Estudio: 295)
EPC


Coordinating teacher: KREDLER , MATTHIAS

Department assigned to the subject: Economics Department

Type: Compulsory
ECTS Credits: 6.0 ECTS

Course:
Semester:




Requirements (Subjects that are assumed to be known)
Intermediate Macroeconomics Calculus Real Analysis (introductory course)
Objectives
-Interpret and analyze economic data. -Apply economic analysis to understand macroeconomic issues. -Explain advanced economic ideas, both in written and oral form. -Compute standard dynamic macro models (neoclassical growth, consumption-savings model) and visualize results in MATLAB. -Study public policies and their macroeconomic effects. -Study of a small open economy: current account, savings, and capital flows
Skills and learning outcomes
Description of contents: programme
1. Economic growth: Solow Model and Evidence. Techniques: ordinary differential equations (ODEs). 2. The Neoclassical Growth Model (Ramsey). Optimization in continuous time: Hamiltonians. Numerics: ODE solvers. 3. Applications of Neoclassical Growth: General Equilibrium, Taxation Optimization in discrete time, dynamic programming (Bellman Equations) and numerical methods (deterministic transitions). 4. Incomplete-markets consumption-savings model: permanent- income and lifecycle hypotheses, Hall¿s random-walk hypothesis, borrowing constraints, precautionary savings. Numerical life-cycle value-function iteration by grid search. 5. Heterogeneous agents: Bewley-Aiyagari-Huggett model. Computing forward equations (for distributions) and backward equations (for expectations etc.). 6. Small Open Economy and Imperfect Capital Markets (if time permits)
Learning activities and methodology
Lectures Recitation classes Tutorials (theoretical work, numerical work in MATLAB) Team work Homework assignments TEACHING METHODOLOGY -Lecture by professor with audiovisual equipment that develops the key concepts of the subject and presents the bibliography that complements the class material. -Reading and discussion of articles recommended by the professor -Solving practical cases, exercises and problem sets
Assessment System
  • % end-of-term-examination 50
  • % of continuous assessment (assigments, laboratory, practicals...) 50

Calendar of Continuous assessment


Basic Bibliography
  • Carlos Végh. Open Economies in Macroeconomics in Developing Countries. MIT Press. 2013
  • David Romer. Advanced Macroeconomics. McGraw Hill. 2006
  • L. Ljungqvist and T.J. Sargent. Recursive Macroeconomic Theory. MIT Press. 2013
Recursos electrónicosElectronic Resources *
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The course syllabus may change due academic events or other reasons.