Syllabus

Title
2127 Foundations of Macroeconomics (MSc Economics)
Instructors
Assoz.Prof PD Dr. Katrin Rabitsch-Schilcher
Contact details
Type
PI
Weekly hours
2
Language of instruction
Englisch
Registration
10/04/23 to 10/04/23
Registration via LPIS
Notes to the course
Subject(s) Master Programs
Dates
Day Date Time Room
Friday 10/13/23 11:00 AM - 01:00 PM D4.0.144
Friday 10/20/23 11:00 AM - 01:00 PM D4.0.144
Friday 10/27/23 11:00 AM - 01:00 PM D4.0.144
Friday 11/03/23 11:00 AM - 01:00 PM D4.0.144
Friday 11/10/23 11:00 AM - 01:00 PM D4.0.144
Friday 11/17/23 11:00 AM - 01:00 PM D4.0.144
Friday 11/24/23 11:00 AM - 01:00 PM D4.0.144
Friday 12/01/23 11:00 AM - 01:00 PM D4.0.144
Friday 12/15/23 11:00 AM - 01:00 PM D4.0.144
Friday 12/22/23 11:00 AM - 01:00 PM D4.0.144
Friday 01/12/24 11:00 AM - 01:00 PM D4.0.144
Friday 01/19/24 11:00 AM - 01:00 PM D4.0.144
Friday 01/26/24 11:00 AM - 01:00 PM D4.0.144
Thursday 02/01/24 11:30 AM - 01:00 PM TC.0.01
Contents

The course offers an introduction into dynamic macroeconomics. Topics covered include an overview of empirical stylized facts of the macroeconomics of the long run (growth) and the short-run (business cycles). We discuss the empirical measurement and characterization of business cycles. The course gives an introduction into dynamic macro modelling in continuous and discrete time. A particular focus will lie on learning and using the macroeconomic methods with which one can solve, simulate and analyze macroeconomic methods.

Learning outcomes

Upon completion of the course, students will have acquired familiarity with the follow topics:

- Intro, Stylized facts in macroeconomics in the long-run (growth, Kaldor stylized facts) and short-run (business cycle stylized facts, trend-cycle decompositions): 1-2 lectures

- Dynamic optimization in discrete and continuous time (Dynamic Lagrangian, Hamiltonian), based on the stochastic growth model as the example model: ~ 2 lectures

- Introduction to Matlab/ Dynare (with the stochastic growth model as the example model) and interpreting the model solution output (impulse responses and model simulation) ~ 2 lectures

- Behind the scene: Linearization and Log-linearization ~ 1 lecture

- Behind the scene: Obtaining the solution of linear dynamic systems (Undetermined coefficients, eigenvalue decompositions, graphically: Phase diagram); using the solution (policy functions) to compute IR and model simulation ~ 2 lectures

- Crash course in Bayesian estimation ~ 1 lecture

- maybe a look into other simple macro models: consumption-savings model, the RBC model

Attendance requirements

Attendance is mandatory. Absence not exceeding two units is accepted.

Teaching/learning method(s)

The course is mainly lecture-based. Homework assignment and exercises (in groups) will be used to deepen the understanding of the materials discussed.

Assessment

Grading is based on:

· Over the course, 2 assignments in groups, 22.5 points each (45 points in total)

· Active course participation (5 points)

· Final exam (50 points), you need to score at least 50% of the points

 

 

Readings

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Recommended previous knowledge and skills

1. Solid knowledge and routine handling of intermediate macroeconomics at the level of basic text books (keywords: IS-LM model and its extension to a model with aggregate supply and aggregate demand; bibliographical reference e.g. Blanchard: Macroeconomics, 7th edition, Pearson, chapters 1-9)

2. Routine handling of basic microeconomic concepts (keywords: household optimum and the derivation of consumption demand and labour supply derivation; properties of Cobb-Douglas utility or production functions, monopoly price formation)

Availability of lecturer(s)

flexible; arrange a meeting on short notice via email katrin.rabitsch@wu.ac.at

Unit details
Unit Date Contents
1 Oct 10, 2022

Macro 1: Introduction + Modelling market power - The monopolistic competition model (Heijdra, chp 11)

2 Oct 17, 2022

Macro 2: Introduction + Modelling market power - The monopolistic competition model (Heijdra, chp 11)

3 Oct 24, 2022

Macro 3: Introduction + Modelling market power - The monopolistic competition model (Heijdra, chp 11)

4 Nov 7, 2022

Macro 4: Modelling market power - The monopolistic competition model (Heijdra, chp 11)

Modelling unemployment - Different approaches (Heijdra, chp 7)

5 Nov 14, 2022

Macro 5: Modelling unemployment - Different approaches (Heijdra, chp 7)

6 Nov 21, 2022

Macro 6: Modelling unemployment - The Blanchard-Giavazzi model (paper by Blanchard and Giavazzi)

7 Nov 28, 2022

Macro 7: Modelling unemployment - The Blanchard-Giavazzi model (paper by Blanchard and Giavazzi)

8 Dec 5, 2022

Midterm

9 Dec 12, 2022

Macro 9: Modelling money and rigidities - The Blanchard-Kiyotaki model (Heijdra, chp 11)

10 Dec 19, 2022

Macro 10: Modelling money and rigidities - The Blanchard-Kiyotaki model (Heijdra, chp 11)

11 Jan 09, 2023

Macro 11: Modelling money and rigidities - The Blanchard-Kiyotaki model (Heijdra, chp 11)

12 Jan 16, 2023

Macro 12: Modelling money and rigidities - The Blanchard-Kiyotaki model (Heijdra, chp 11)

Wrap-up

13 Jan 20, 2023

Q&A Session (time tba)

14 Jan 23, 2023; 10:30 - 12:30

Endterm

Last edited: 2023-05-23



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