32423 - Advanced Macroeconomics

Academic Year 2022/2023

  • Teaching Mode: Traditional lectures
  • Campus: Bologna
  • Corso: Second cycle degree programme (LM) in Economics and Economic Policy (cod. 8420)

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

Decent work and economic growth

This teaching activity contributes to the achievement of the Sustainable Development Goals of the UN 2030 Agenda.