We discuss the theory of saving, consumption and investment based on dynamic optimization. Furthermore, we also explore endogenous growth theory and real business cycle theory as an application of dynamic optimization model, and monetary and fiscal policy as a related matter.
1.The Solow model
chapter 1
2.Infinite-Horizon and Overlapping –Generations Model
Chapter 2
3.New Growth Theory
chapter 3
4.Real-Business-Cycle Theory
chapter 4
5.Consumption
chapter 7
6.Investment
chapter 8
7.Inflation and Monetary Policy
chapter 10
8.Budget Deficits and Fiscal Policy
chapter 11
David Romer (2006) Advanced Macroeconomics (3rd edition)
prerequisite:macroeconomics and econometrics at the level of undergraduate textbooks
Homework 30% Final exam 70%
Homework will be given from the problem set of the text. Every student is recommended to attend TA session for discussing solutions of homework. TA session will be conducted in Japanese.