90298 - Advanced Macroeconomics

Course Unit Page


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

Zero hunger Decent work and economic growth

Academic Year 2021/2022

Learning outcomes

This course presents models and techniques used by macroeconomists to study the theory of consumption and investment. At the end of the course, the student: - knows basic techniques in dynamic programming and their applications - critically understands macroeconomic models that study the dynamics of Consumption and Investment.

Course contents

The theory of consumption and investment:

1. Consumption under certainty

2. Consumption under uncertainty

3. Empirical applications

4. The Interest rate, saving and consumption growth

5. Consumption and risky assets

6.Liquidity constraints

7. Investment and the cost of capital

8. Investment with adjusting costs

9. tobin's Q

10. Investment and uncertainty


Romer, David, Advanced Macroeconomics, the McGraw-Hill Companies,last edition

Jappelli, T. L.Pistaferri, The Economics of Consumption: Theory and Applications, 2018 Oxford Economic Press

Lectures Notes

Teaching methods

traditional teacher led classes

Assessment methods

At the end of the course, there will be a one hour and a half written examination. The exam will be closed book. The aim of the exam is to test the knowledge acquired by students both of the theoretical and of the empirical literature discussed in class. The exam will count 90% of the final grade. Three problems sets solved by student every week will count 10% of the final grade.

The written exam is closed book. It is divided in three parts:

  • True, False, Uncertain (answer with concise motivation): 6 questions, 30 points
  • Open question (formal answer to theoretical question): 1 or 2 questions, total 30 points

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

The maximum possible score is 30 cum laude, in case all answers 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


Teaching tools

There will be three recitations led by the professor and three to four problem sets.


Dedicated page on the VIRTUALE platform containing:

  • News and updated information
  • Lectures slides

Office hours

See the website of Laura Bottazzi