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.
(* the updated course’s syllabus will be available to students at the beginning of each academic term)
General characterization
Code
6118
Credits
8
Responsible teacher
Prof Doutor André Castro Silva
Hours
Weekly - Available soon
Total - Available soon
Teaching language
English
Prerequisites
n/a
Bibliography
The main textbooks are:
Barro and Sala-i-Martin (2003). Economic Growth, 2nd Ed. Cambridge:
MIT Press.
Ljungqvist
and Sargent (2018). Recursive Macroeconomic Theory, 4th Ed. Cambridge: MIT
Press.
McCandless
(2008). The ABCs of RBCs. Cambridge: Harvard University Press.
Barro and Sala-i-Martin will be used for economic growth. Ljungqvist and Sargent and McCandless
Teaching method
There will be several problems set to study the topics of the course.
Evaluation method
Final grade = 0.40*Midterm + 0.60*Final Exam
Subject matter
Economic Growth
Introduction. Data
Productivity and the allocation of talent
Economic growth as dynamic programming problem
Stochastic economic grow
Quadratic dynamic programming
Stochastic linear equations in macroeconomics
Money
Asset pricing
Optimal taxation