Study information

Macroeconomic Theory I

Module titleMacroeconomic Theory I
Module codeBEEM138
Academic year2019/0
Credits15
Module staff

Dr Julian Neira Sanchez (Lecturer)

Duration: Term123
Duration: Weeks

11

Module description

The module covers topics in modern macroeconomics with an emphasis on tools necessary to pursue
research in macroeconomics.

Module aims - intentions of the module

The module explores core areas of modern macroeconomics with the aim to develop an understanding of
macroeconomic models that enables students to use them to tackle macroeconomic questions. The
emphasis will thus be on learning theoretical concepts and analytical techniques by using them in the
process of discussing relevant modern macroeconomic topics.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

  • 1. address complex questions at the frontier of macroeconomic research systematically and creatively.
  • 2. make sound judgements and communicate their conclusions to specialists and non-specialists.

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

  • 3. demonstrate self-direction and originality in tackling and solving macroeconomics problems.
  • 4. continue to advance their knowledge and understanding, and to develop new skills to a high level.

ILO: Personal and key skills

On successfully completing the module you will be able to...

  • 5. identify, tackle and solve relevant research problems in macroeconomics
  • 6. work independently and responsibly on complex research problems.

Syllabus plan

1. Dynamic Programming: Recursive Representations, Value Function Iteration, Markov Chains,
Stationary Distributions, Policy Function Iteration
2. Equilibrium with Complete Markets: Arrow-Debreu securities, Welfare Theorems, Recursive
Competitive Equilibrium
3. Overlapping Generations Models: Dynamic Inefficiency, Overaccumulation, Pareto Suboptimal
Allocations

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
321180

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Schedules learning and teaching22Lectures
Schedules learning and teaching10Tutorials
Independent Study118Independent study

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Practice ProblemsVaries1-6Oral/Written

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
45550

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Exam553 hours1-6Oral/Written
3 Problem Sets451-4 Problems each1-6Oral/Written

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
ExaminationExamination 55% (3 hours)1-6August examination period
Problem SetsProblem set 45% (1-8 problems)1-6August examination period

Indicative learning resources - Basic reading

- Romer, Advanced Macroeconomics, McGraw-Hill Advanced Series in Economics, New
York, 2012.
- Ljungqvist and Sargent, Recursive Macroeconomic Theory, MIT Press, 2004.
- Stokey and Lucas, with Prescott, Recursive Methods in Economic Dynamics, Harvard
University Press, 1989.
- D. Acemoglu, Introduction to Modern Economic Growth, Princeton University Press, 2009.
- Barro and Sala-i-Martin, Economic Growth, McGraw-Hill, 1997.
- Obstfeld and Rogoff, Foundations of International Macroeconomics, MIT Press, 2000.
- Aghion and Howitt, Endogenous Growth Theory, MIT Press 1998.
- Pissarides, Equilibrium Unemployment Theory, MIT Press 2000.
- Walsh, Monetary Theory and Policy, MIT Press, 2010.

Key words search

Dynamic programming, OLG models.

Credit value15
Module ECTS

7.5

Module pre-requisites

Only available to MRes Economics PhD pathway students

Module co-requisites

None

NQF level (module)

7

Available as distance learning?

No

Origin date

29/02/2016

Last revision date

20/08/2019