Academic Year 2022/2023
- Docente: Paolo Luciano Adalberto Manasse
- Credits: 10
- SSD: SECS-P/01
- Language: Italian
- Teaching Mode: Traditional lectures
- Campus: Bologna
- Corso: Second cycle degree programme (LM) in Economics and Economic Policy (cod. 8420)
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from Feb 14, 2023 to Jun 06, 2023
Learning outcomes
The course aims at familiarizing the student with the most popular macroeconomic models with an effort to apply them to real world problems. At the end of the course the student is expected to: be familiar with the standard growth models and their ability to account for existing differences , in time and across countries, in levels and growth rates of per-capita incomes; be familiar with endogenous growth models; the student is also expected to have studied the theory of the main components of aggregate demand, consumption and investment, as well as the microeconomic foundations of price stickiness. Finally the student is expected to be able to analyze problems concerning unemployment and the labor market and discuss issue on the sustanainability and the effects of public debt.
Course contents
This course is divided into four parts.La first part introduces the
main models of the theory of growth, the Solow model and models
with microeconomic foundations: the Ramsey-Cass-Koopmans model and the overlapping generations model (OLG) of Diamond. Particular
attention is devoted to the ability of models to account for the observed differences in levels and growth rates of per
capita income between countries and over time. The overlapping
generations model also provides the basis for a theory of intergenerational transfers and public debt. This part is concluded by
a discussion of endogenous growth models, the general AK model with
an application to the "learning by doing" model. The second part of the course is devoted to the theory of aggregate demand: consumption (the permanent income hypothesis ) and investment
(Tobin's Q-theory). The third part discusses the theory of unemployment: the approaches of efficiency wages,
job-search, implicit contracts and insider-outsider are discussed. The last part discusses the role of Public Debt and Fiscal Policy. The notion of solvency and sustainability of public debt is defined as well as the Ricardian Equivalence theorem and the theory of optimal taxation over time. Finally, political economy models explaining governments 'incentives to implement deficit policies are presented.
Readings/Bibliography
David Romer, (R) Advanced Macroeconomics, Mc Graw-Hill, 2006 3rd
edition),
Robert Barro, Xavier Sala-i-Martin, (BS), Economic Growth MIT Press
- Modello di Solow: R cap.1, esclusa sez. 1.8
- Ramsey e OLG: R, cap 2 , Appunti distribuiti dal docente
-Teoria del Consumo: R cap 7
-Teoria dell ' Investimento: R cap 8
-Rigidit à Nominali: R cap 6 (6.1-6.6, 6.9)
- Disoccupazione: R cap 9 (9.1-9.5 e 9.8-9.9 )
Teaching methods
Lectures and Classes take place in presence and simultaneously on line (mixed modality)
Assessment methods
Students can take the exam in two "partial" written tests on the first / second part of the program, or in a single "general" written test covering the entire program. Both types of tests consist of a three-question written exam. The first "partial" test must be taken in the specific exam session, while the second "partial" test can be taken only once in any session of the academic year.
Test can be taken on line only in the cases admitted by the University (foreign residence/illness)
The Teaching tutor distributes the text of the exercises one week before the exercises are solved, and the students, on a voluntary basis, send the solutions to the Tutor by the date of the session. The exercises are graded and can add between 0-2 points to the exam final grade (the exercises not carried out are evaluated zero)
The final grade is obtained by summing of the average of the partial tests votes (or the general test vote ) and the evaluation of the exercises.
Votes are expressed in thirtieths:
<18 fail
18-23 sufficient
24-27 good
28-30 very good
30 e lode excellent.
Teaching tools
Course material distributed by the professor, classes by tutor
Links to further information
http://paolomanasse.it/teaching/
Office hours
See the website of Paolo Luciano Adalberto Manasse
SDGs
This teaching activity contributes to the achievement of the Sustainable Development Goals of the UN 2030 Agenda.