28875 - Macroeconomics 1

Learning outcomes

At the end of the course the student has a good understanding of basic general equilibrium dynamic macroeconomic models, used by economists to analyze several theoretical and policy questions, and of modern growth theory. In particular, he/she: - knows and is able to solve analytically macroeconomic dynamic models (infinite horizons and overlapping generations); - knows the main empirical issues and theoretical models analyzed by modern growth theory; - is able to apply models to investigate comparative dynamics across countries and over time.

Course contents

The course, which is the first part of Macroeconomics I.C., presents topics in modern macroeconomic theory with a focus on long run issues. The first part of the course introduces the two basic macroeconomic models used to describe the economic system in a dynamic general equilibrium framework with optimizing agents. The second part of the course provides a systematic presentation of modern macroeconomic growth theory and analyzes the role of different factors in generating persistent disparities in income per capita across countries.

Topics:

1. Dynamic macroeconomic models with optimizing agents. The representative agent model with infinite horizons. The overlapping generations model.
2. The neoclassical growth model: stylized facts, theory and empirical evidence. Endogenous growth: competitive models of endogenous growth. Endogenous technical change
3. Poverty traps. Multiple equilibria. Multiple steady states. 

 

Readings/Bibliography

Suggested textbooks:  

• David Romer, Advanced Macroeconomics, Mc Graw-Hill, 2019 (5th edition)
• Barro R. and X. Sala-i-Martin, Economic Growth, MIT Press, 2004 (2nd edition)
• Acemoglu, D. Introduction to Modern Economic Growth, Princeton University Press, 2008 

The complete reading list (required and suggested readings from the textbooks and other sources such as journal articles, books, etc.) is available  on IOL. 

Teaching methods

Lectures (with slides). Homeworks andreview classes.

Assessment methods

The final exam aims at verifying the acquisition of expected learning outcomes. The exam is a closed-book written exam with essay-type and analytical-type questions and problems. Questions and problems aim at verifying knowledge of the main macroeconomic dynamic models, of the empirical issues and of theoretical models analyzed by modern growth theory, and the ability to apply these models to understand and investigate comparative dynamics across countries and over time. Individual solutions to homeworks, handed out  during lectures, may contribute to assessment, provided that all homeworks are returned in due time and the exam is taken at the end of the course or in the following two exam dates. In homeworks students are asked to answer analytical-type questions and solve problems using methods and tools presented in lectures.

For students who take the course as part of Macroeconomics I.C. exam rules for integrated courses apply (see http://corsi.unibo.it/lmec/Pages/default.aspx)

Teaching tools

Slides. Homeworks.

Teaching materials are available on IOL. 

Links to further information

http://www.lmec.unibo.it/LMEC/default.htm

Office hours

See the website of Carlotta Berti Ceroni