28875 - Macroeconomics 1

Course Unit Page


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

Decent work and economic growth Reduced inequalities

Academic Year 2021/2022

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.


  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. 



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.) will be made available  on Virtuale.  

Teaching methods

Lectures (with slides). Home assignments. Review classes.

Assessment methods

The final exam aims at verifying the acquisition of expected learning outcomes. The exam is written with essay-type, true and false, analytical-type questions (three questions: the exam will not necessarily include a question per type; more than one question per type may be included). 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. Homeworks are not compulsory. In case a student has handed them in due time and takes the exam at the end of the course or in the following two exam dates, she has the option to answer two out of three questions in the written exam. In case he/she chooses to do so, the final grade is calculated as the weighted average of the grade on the written exam (60%) and homeworks (40%). Otherwise the final grade is based entirely on the written exam.

In case online exams will be envisaged by the University of Bologna, the structure of the exam is the same. The exam will be managed through Zoom and Exams Online (EOL). Detailed instructions on how to manage and hand in the online exam will be made available on the course's page on the VIRTUALE platform.

The maximum possible score is 30 cum laude, in case all anwers are correct, complete and formally rigorous.

The grade is graduated as follows:

<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 e lode excellent

For students attending the Master in Economics LMEC the Macroeconomic 1 grade will contribute to the final grade of the integrated course Macroeconomics I.C. A passing grade (18+) is required on both modules composing the integrated course. The final grade for Macroeconomics IC is obtained as the average of the grades of Macroeconomics 1 and Macroeconomics 2 (see the LMEC booklet on the LMEC webpage for detailed information on the integrated courses' exams).

Teaching tools

Slides. Homeworks.

Teaching materials are available on Virtuale 

Links to further information


Office hours

See the website of Carlotta Berti Ceroni