This course covers the intermediary macroeconomics. The basic knowledge covered in Macroeconomics I and II is required. This course focuses on the micro-foundation for macroeconomics. Students study the overlapping-generations model and the Ramsey growth model and its application.
This course has two aims. The first is to explain the importance of the micro-foundation for macroeconomics. The second is to understand the Ramsey growth model as an intermediary for the graduate level macroeconomics.
By the end of this course, students will acquire
1) Basic knowledge of the overlapping-generations model
2) Basic knowledge of the Ramsey growth model
3) Basic knowledge of economic growth theory
Macroeconomics, Mico-foundations, Overlapping-generations model, Ramsey model, Economic Growth
|✔ Specialist skills||Intercultural skills||Communication skills||Critical thinking skills||Practical and/or problem-solving skills|
This course uses slides to explain the basic knowledge. Complicated calculations and proofs of theorems are explained in detail using blackboard.
|Course schedule||Required learning|
|Class 1||Introduction||Explain the micro-foundations for macroeconomics. Explain the micro-foundations for macroeconomics.|
|Class 2||Overlapping-generations model (1) - Introduction and Household behavior||Explain household behavior.|
|Class 3||Overlapping-generations model (1) - Firm Behavior||Explain firm behavior.|
|Class 4||Overlapping-generations model (1) - Equilibrium Dynamics||Explain equilibrium dynamics.|
|Class 5||Overlapping-generations model (1) - Dynamic Inefficiency||Explain dynamic inefficiency.|
|Class 6||Overlapping-generations model (1) - Social Security||Explain how to introduce social security system.|
|Class 7||Overlapping-generations model (1) - Social Security and Population Aging||Explain the effects of social security.|
|Class 8||Ramsey Growth Model (1) - Introduction||Explain the motivation of the Ramsey Growth Model.|
|Class 9||Ramsey Growth Model (2) - Household and Firm Behavior||Explain household and firm behavior|
|Class 10||Ramsey Growth Model (3) - Equilibrium Dynamics||Explain the dynamics of consumption and capital.|
|Class 11||Ramsey Growth Model (4) - Technology Shock||Explain the effects of technology shocks.|
|Class 12||AK model (1) - Introduction||Explain the basic structure of the AK model.|
|Class 13||AK model (2) - Policy Analysis||Explain how some policies affect growth path.|
To enhance effective learning, students are encouraged to spend approximately 100 minutes preparing for class and another 100 minutes reviewing class content afterwards (including assignments) for each class.
They should do so by referring to textbooks and other course material.
No text books are set.
Makoto Saito et. al. "Macroeconmoics" Yuhikaku ISBN978-4-641-05372-4
Midterm and Final Exams
The basic knowledge covered in IEE.B203 ： Macroeconomics I and IEE.B204 ： Macroeconomics II is required.