Macroeconomics I
Objectives
The objective of this course is
to study techniques to analyse macroeconomics issues such as economic growth,
investments, the effect of government policies and asset pricing.
We start the course with models
of economic growth formulated as optimal control in continuous time. We study
topics such as growth, savings and the evolution of capital.
We then focus on models
formulated recursively, in a way in which agents decide their next action based
on realization of the current state. Most of the course focus on this part.
This formulation is especially useful
to
study economics under uncertainty. We will see applications to topics such as
growth under uncertainty and asset pricing.
General characterization
Code
6118
Credits
8
Responsible teacher
TBA
Hours
Weekly - Available soon
Total - Available soon
Teaching language
English
Prerequisites
n/a
Bibliography
Available soon
Teaching method
There will be several problems set to study the topics of the course in more detail. They will also be used to introduce MatLab.
Evaluation method
Final grade = 0.40*Midterm + 0.60*Final Exam
Subject matter
Economic Growth
Data
The slow growth model: economic growth with constant saving
rate
The Ramsey-Cass-Koopmans Model: economic growth and saving
decisions. Policy changes
Endogenous growth models
Recursive Methods
Economic growth as a dynamic programming problem
Stochastic economic growth
Macroeconomic application of stochastic linear difference
equations
Linear quadratic dynamic programming
Money
Asset Pricing
Optimal taxation