ECTS - University of Pisa
By the end of the course the students should have developed skills that will enable them to autonomously and critically discuss articles published on the major economic journals concerning economic growth, consumption and investment theories, theories of economic fluctuations. The student who successfully completes the course will have the ability to master some relevant optimization techniques that are commonly used in modern macroeconomics.
- The student will be assessed on his/her demonstrated ability to discuss the main course contents using the appropriate terminology. - In the written exam the student must demonstrate his/her knowledge of the course material and to organise an effective and correctly written reply.
Methods:
Theoretical and quantitative skills related to macroeconomic models
Written examination and homeworks
The student should be able to read the most of specialized journals in macroeconomics
Written examinations and homeworks
Basics of macroeconomic and microeconomic theory
Delivery: face to face
Attendance: Advised
Learning activities:
Teaching methods:
First module 1. The Solowian growth model 2. Human capital and growth 3. Growth models of poverty traps 4. Technological diffusion and growth 5. Overlapping generations models 6. An introduction to indeterminacy and bubbles Second Module 1. Fisher’s theory on intertemporal choices 2. Modigliani’ s theory of the life-cycle model and recent extensions concerning rational expectations, Lucas' critique and population dynamics 3. Friedman’s theory of the permanent income and recent developments on rational expectations, uncertainty and precautionary savings 4. Investment theory: an Historical perspective 5. Investment theory: Jorgenson's model 6. Investment theory: adjustment costs Third Module 1. Introduction to macroeconomic ?uctuations 2. The real-business-cycle approach 3. The new Keynesian approach 4. The interaction of output, unemployment, and inflation
Required reading Davide Fiaschi (2013) Lectures notes on growth and overlapping generations models Spataro (2013): Lectures notes on consumption and investment theory Bagliano, F.C, Bertola, G. (2007): Models for Dynamic Macroeconomics, Oxford University Press (chapters 1 and 2) Romer, D. Advanced Macroeconomics, 3rd ed., McGraw Hill Publishers, 2005, selected chapters and paragraphs. Recommended reading includes the following works Some fondumental papers on growth theory and overlapping generations models Abel (1990): “Consumption and investment”, Handbook of Monetary Economics Caballero (1999): “Aggregate investment”, Handbook of Macroeconomics Romer, David Advanced Macroeconomics, 3rd Ed., 2005. New York: McGraw Hill Publishers, chapters 7 and 8 Hoover, K., Applied Intermediate Macroeconomics, Cambridge University Press, 2012; selected chapters. Snowdon, B. and H.R. Vane, Modern Macroeconomics. Its Origins, Development and Current State, Edward Elgar, 2005; selected chapters. Selected articles from scientific journals.
Written examination and homeworks
