2016 Advanced Macroeconomics

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Academic unit or major
Graduate major in Industrial Engineering and Economics
Instructor(s)
Ohdoi Ryoji 
Course component(s)
Lecture
Day/Period(Room No.)
Tue7-8(W934)  Fri7-8(W934)  
Group
-
Course number
IEE.B402
Credits
2
Academic year
2016
Offered quarter
2Q
Syllabus updated
2016/4/27
Lecture notes updated
2018/1/26
Language used
Japanese
Access Index

Course description and aims

This course is designed for mainly first-year graduate students to help them understand the basic analytical tools of modern macroeconomics.
The first half of this course covers (i)the mathematical methods often used in macroeconomics (e.g., dynamic programming, optimal control theory, dynamical system), and (ii)the Ramsey-Cass-Koopmans model, which now gives us a benchmark for many areas of macroeconomic analysis. Then, in the second half, we extend this model to understand the mechanics of several important economic phenomena, including economic growth, business cycle, unemployment and so on.

Student learning outcomes

The objective of this course is for students to become familiar with macroeconomics and to help them in their ability to read theoretical research papers in preparation for their own research.

Keywords

Ramsey-Cass-Koopmans model, dynamic optimization, optimal control, infinite-horizon dynamic programming, dynamical system, steady state, optimal growth path, endogenous growth model, AK model, knowledge spillovers (or knowledge externalities), directed technological change, R&D, real business cycle model, calibration,

Competencies that will be developed

Intercultural skills Communication skills Specialist skills Critical thinking skills Practical and/or problem-solving skills
- -

Class flow

I will give students homework assignments after we have finished each topic covered in this course.

Course schedule/Required learning

  Course schedule Required learning
Class 1 Introduction to Dynamic Optimization I will explicitly state the topics to be covered on the slide for each class.
Class 2 Infinite-horizon Dynamic Programming (1)
Class 3 Infinite-horizon Dynamic Programming (2)
Class 4 Dynamical System
Class 5 Introduction to Optimal Control
Class 6 Ramsey-Cass-Koopmans Model (1): Existence, Uniqueness, and Stability of Optimal Growth Path
Class 7 Ramsey-Cass-Koopmans Model (2): Market Equilibrium Path
Class 8 Ramsey-Cass-Koopmans Model (3): Policy Analysis
Class 9 Midterm Evaluation Review of the first half of the course (classes 1–8) and midterm exam.
Class 10 Endogenous Growth Model (1)
Class 11 Endogenous Growth Model (2)
Class 12 Real Business Cycle Model (1)
Class 13 Real Business Cycle Model (2)
Class 14 Search and Matching Model (1)
Class 15 Search and Matching Model (2)

Textbook(s)

There is no designated textbook. Handouts or slides used for each class will be available on the corresponding page of Tokyo Tech OCW by the day before the class.

Reference books, course materials, etc.

(1)Acemoglu, D. (2009) Introduction to Modern Economic Growth, Princeton University Press.
(2) Adda, J. and R. Cooper (2003) Dynamic Economics, Cambridge, MIT Press.
(3) Barro, R. J. and X. Sala-i-Martin (2004) Economic Growth, Second Edition, Cambridge,MIT Press.
(4) Ljungqvist, L. and T. J. Sargent (2012) Recursive Macroeconomic Theory, Third Edition, Cambridge, MIT Press

Assessment criteria and methods

The final grade is based on homework assignments (30%) and examinations (70%).

Related courses

  • IEE.B203 : Macroeconomics I
  • IEE.B204 : Macroeconomics II
  • IEE.B201 : Microeconomics I
  • IEE.B202 : Microeconomics II
  • IEE.B401 : Advanced Microeconomics
  • IEE.B205 : Noncooperartive Game Theory

Prerequisites (i.e., required knowledge, skills, courses, etc.)

Although there is no explicit prerequisite for this course, knowledge of micro- and macroeconomics at the undergraduate level and a basic understanding of nonlinear programming will be required.

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