This course equips students with the necessary tools to understand and write scientific articles in modern macroeconomics. Specifically, the students gets acquainted with
1. the non-stochastic and stochastic versions of the neoclassical growth model and the consumption-savings problem, two of the main workhorses of modern macroeconomics;
2. dynamic programming, a powerful tool for solving dynamic optimization problems, in discrete and continuous time;
3. a set of models that are important in modern macroeconomic theory (cyclical fluctuations; Ramsey optimal policy, and the search-and-matching model).
Basic Skills:
To develop knowledge that is the basis for developing new knowledge, often in a research context.
To apply the concepts learn to new problems and to new areas of knowledge that are related to the area of study of the student.
To integrate diverse concepts and confront new realities and be able to judge ethical aspects when applying the concepts learned.
To communicate results and knowledge to the general public and to specialized audiences in a clear and unambiguous fashion.
To acquire the ability for independent learning.
General Skills:
To analyze and summarize a scientific text.
To interpret and elaborate advanced studies in economics.
To apply advanced knowledge in economics, mathematics, and econometrics.
To evaluate scientific articles.
To prepare and present scientific documents.
To identify key conventions in sciences and, in particular, economics.
Specific Skills:
To apply dynamic programming with and without uncertainty to advanced problems in economics.
To apply and understand dynamic general equilibrium theory
To apply and understand the neoclassical growth model
To apply and understand overlapping generations models
To understand and analyze the role of money and inflation in general equilibrium models
To understand the basic real business cycle model
To apply and interpret search models in the labor market.
To understand and evaluate alternative public polices and their macroeconomic consequences.
To apply and interpret macroeconometric models.
Learning outcomes:
1. To understand and solve dynamic general equilibrium models that are the bases of modern macroeconomic theory.
2. Mastery of the basic concepts of dynamic programming.
3. Proficiency in modeling dynamic problems in macroeconomics.
4. Mastery of the application of recursive techniques in macroeconomic models.
5. Analysis of dynamic models in macroeconomics: finite and infinite horizons, under certainty and uncertainty.
6. Development of knowledge of the fundamental models of modern macroeconomics: neoclassical growth model, the consumption-savings problem, job search.
7. Ability to use dynamic general equilibrium models to analyze economic growth, effects of aggregate shocks as well as the consequences of market imperfections for the behavior of the economy.
8. Ability to develop empirical models, both econometric and computational, that apply theoretical macroeconomic models.
9. Ability to formulate and compute dynamic general equilibrium models with heterogeneous agents.
10. Estimation-calibration of macroeconomic models.
11. Study counterfactuals using empirical macroeconomic models.
