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Advanced Macroeconomic Theory-I (E-610)
- Instructor Name: Dr. Haider Ali & Dr. Nadia Hassan
- Credit Hours: 3
- Department of Economics
- E-mail: [email protected], [email protected]
- Office Hours: Mon-Thu (by appointment)
Prerequisites For this Course:
None
Text Book(s):
Advanced Macroeconomics by David Romer (DR) (Latest Edition)
Reference Book(s):
- Lectures in Macroeconomics by Blanchard and Fischer. (BF)
- Acemoglu, Daron, 2009, Introduction to Modern Economic Growth. (AD)
- Ljungqvist, Lars and Thomas J. Sargent, 2012, Recursive Macroeconomic Theory. (LT)
- Chugh, Sanjay K. (2015). Modern Macroeconomics, MIT Press. (CS)
- Stiglitz, Joseph E. (2016). Contemporary Issues in Macroeconomics: Lessons from The Crisis and Beyond (JS)
- Advanced Macroeconomics: An Easy Guide by Filipe Campante, Federico Sturzenegger, Andrés Velasco. (FFA)
Course Description
This graduate-level course provides an in-depth examination of advanced concepts and theories in macroeconomics, focusing on both theoretical frameworks and empirical analysis. Students will delve into the intricacies of macroeconomic phenomena, exploring their causes, consequences, and policy implications.
Course Objectives
In this course, students are expected to acquire the tools necessary to read and understand the issues in economic literature that are essential for dissertation level research. Also, students should be able to demonstrate an in-depth competency in the theory and application of the core areas of macroeconomics and should be able to apply appropriate theories, models and tools to solve macroeconomic problems.
Learning Outcomes
Upon completion of this course, students will:
- Demonstrate a comprehensive understanding of advanced macroeconomic theories and models.
- Critically evaluate empirical evidence and apply quantitative methods to analyze macroeconomic data.
- Assess the effectiveness and limitations of macroeconomic policies in addressing economic fluctuations and promoting long-term growth.
- Develop the analytical skills necessary to contribute to academic research or policy analysis in the field of macroeconomics.
Lecture Plan
| Session | Topic | Readings
(Book Chapters/pages/Research papers/Handouts/Web links, including video links |
Activities
Quizzes/Assignments/Term papers |
Instructor
(If multiple instructors are teaching a course, mention the instructor’s name for each module/session |
| Module # 1: Modern Macroeconomic Problems and Concepts | ||||
| 1 | An overview of macroeconomics and some macroeconomic facts (country-wise outlook on main indicators of macroeconomy) | Handouts | Home task | Dr. Haider Ali |
| 2 | Modern macroeconomics and its central issues | JS Chapter 1, CS Chapter 10, reference articles | Home task | Dr. Nadia Hassan |
| 3 | Analytical skill for empirical macroeconomics | Reference links and websites | Assignment # 1 | Dr. Nadia Hassan |
| Module # 2: Models of Growth | ||||
| 4 | Prosperity and growth; long-run process of growth; stylized facts and recent findings, stability of the worldwide economic growth, and cross-country income differences | AD Chapter 1 | Quiz # 1 | Dr. Haider Ali |
| 5 | Solow growth framework | DR Chapter 1, AD Chapter 2, CS Chapter 25 | Home task | Dr. Haider Ali |
| 6 | Neoclassical growth | AD Chapter 5, CS Chapter 26 | Assignment # 2 | Dr. Haider Ali |
| 7 | Exogenous vs Endogenous Growth | DR Chapter 3 | Quiz # 2 | Dr. Haider Ali |
| 8 | MIDTERM EXAM | |||
| Module # 3: Intertemporal Models of Consumption and Investment | ||||
| 9 | Consumption under Certainty | BF Chapter 2, DR Chapter 6, FFA Chapter 11 | Home task | Dr. Haider Ali |
| 10 | Consumption under Uncertainty | BF Chapter 2, DR Chapter 8, FFA Chapter 12 | Assignment # 3 | Dr. Haider Ali |
| 11 | Investment and the Cost of Capital: a model for investment with adjustment costs | DR Chapter 9, FFA Chapter 13 | Home task | Dr. Nadia Hassan |
| 12 | Imperfections in the Financial Market: Empirical Application: Cash Flow and Investment | DR Chapter 10, Reference articles | Quiz # 3 | Dr. Nadia Hassan |
| Module # 4:Monetary and Fiscal Policy in Macroeconomic Models | ||||
| 13 | Monetary policy; microeconomic foundations of stabilization policy; Optimal monetary policy in a forward-looking model | DR Chapter 12, CS Chapter 17 | Home task | Dr. Nadia Hassan |
| 14 | Financial Frictions, House Prices, and Unconventional Monetary Policy | Reference Articles | Assignment # 4 | Dr. Nadia Hassan |
| 15 | Budget deficits and fiscal policy | DR Chapter 13, CS Chapter 19 & 20 | Home task | Dr. Nadia Hassan |
| 16 | Monetary – Fiscal Interactions; Optimal Fiscal and Monetary Policy | CS Chapter 20, reference articles | Quiz # 4 | Dr. Nadia Hassan |
| FINAL TERM EXAM | ||||
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