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.
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.
Ramsey-Cass-Koopmans model, infinite-horizon dynamic optimization, 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,
|✔ Specialist skills||✔ Intercultural skills||Communication skills||✔ Critical thinking skills||Practical and/or problem-solving skills|
I will give students homework assignments after we have finished each topic covered in this course.
|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)|
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.
(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
The final grade is based on homework assignments (30%) and examinations (70%).
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.