ECON3010. TOPICS IN MACROECONOMICS (2003/04)

Lecturer: Xavier Mateos-Planas

 

Welcome to the website for EC3010. On this page you will find lecture notes, problem sets and the bibliographic references. This page also provides updated details about the organisation of the lectures and classes.

 

COURSE OUTLINE.

The aim of the course is to expose the students to current macroeconomic theories and their implications for understanding key macroeconomic issues. To that end, the approach adopted emphasizes the dynamic dimension of interesting macroeconomic problems and the analysis of models based on explicit optimising behaviour by economic agents

This course is organised in a sequence of topics. Economic growth is discussed in the context of the neoclassical growth model and the more recent endogenous growth theories. The empirical relevance of the different theories will be assessed critically. The theory of optimal intertemporal choices of consumption is examined next. Asset pricing is studied in this context. A number of fiscal policy issues, dynamic efficiency and Ricardian equivalence are the subject of the next block of lectures. Here the Ramsey model and the Overlapping Generations Model will be put at work. Their welfare and policy implications are discussed and compared. The fourth block explores the sources and mechanisms of aggregate fluctuations and related policy issues.  A Real Business Cycles model is presented as a benchmark to evaluate the importance of intertemporal substitution and technology shocks.  Monetary extensions of the previous models and New Keynesian theories of price rigidity will also be discussed in this context.    

Further details about the contents of the unit can be found in the syllabus.

 

ORGANISATION.

Instructor: Xavier Mateos-Planas (Office 3085)

Office hours: Tu 2:00-3:00PM or by appointment.

Lectures: Tuesday 11:55 B2/LRL  and Thursday 9:00 B58/LRG

Classes: Thursday 11:00, even weeks starting week 4

Study week: week 5

 

BOOKS:

·        D. Romer (1996, 2001) Advanced Macroeconomics, McGraw-Hill.

·        R. J. Barro and X. Sala-i-Martin (1995,1998) Economic Growth, McGraw-Hill.

·        O. J. Blanchard and S. Fischer (1989) Lectures on Macroeconomics, MIT Press.

·        Charles I. Jones (1998) Introduction to Economic Growth, W. W. Norton & Company, Inc.

The above are useful sources for the materials covered in the course. Library copies are held on-reserve. Detailed citations for the different parts of the course are given below.

 

READING ASSIGNMENT FOR STUDY WEEK

·        Romer (2001,1996): section 7.3 on tests of the random-walk theory of consumption

·        Romer (2001,1996): the two subsections on liquidity constraints in section 7.6

 

LECTURE NOTES.

Lecture 1. The Solow Model notes, figures

Lecture 2. Economic Growth notes, figures

Lecture 3. Consumption and Asset Prices notes, figures

Lecture 4. The Ramsey Model notes, figures

Lecture 5. The Overlapping Generations Model notes, figures

Lecture 6. Models of Real Business Cycles notes, figures

Lecture 7. Money notes

Lecture 8. New Keynesian Macroeconomics notes

Lecture 9. Expectations and macroeconomic policy

 

LIST OF PROBLEM SETS

Problem set 1             Problem set 2             Problem set 3             Problem set 4

PS1 answers               PS2 answers               PS3 answers

 

REFERENCES.

L1. Romer (2001, ch1, p9-22), Barro and Sala-i-Martin (1995,ch1, p14-25), or Jones (1998, ch2)

L2. D. Romer (2001, ch1), Barro and Sala-i-Martin (1995, ch1), or Jones (1998, ch2, 3, and 5)

L3. D. Romer (2001, ch7)

L4. D. Romer (2001, ch2),  Barro and Sala-i-Martin (1995,ch2), or Blanchard and Fischer (1989, ch2)

L5. D. Romer (2001, ch2) or Blanchard and Fischer (1989, ch3).

L6. D. Romer (2001,Ch4)

L8. D. Romer (2001, ch6)

 

 

-------------------------------------------------

Last updated 03 December  2003.