Data on the course

Show instruction and examinations
ECOM-G312 Macroeconomics 1, 5 cr 
Code ECOM-G312  Validity 01.01.2017 -
Name Macroeconomics 1  Abbreviation Macro 1 
Scope5 cr   
TypeAdvanced studies
  GradingGeneral scale 
    Can be taken more than onceno
Unit Master's Programme in Economics 

Tapio Palokangas 

Target group 

Master’s Programme in Economics (General Track)


First autumn term

Learning outcomes 

After the course, the student should be able to

  • Use growth accounting as a tool of predictions and planning 
  • Read literature on dynamic macroeconomics (e.g. overlapping generation models) and economic growth independently 
  • Analyse models of dynamic macroeconomics and exogenous and endogenous growth independently
Completion methods 

The course consists of lectures (24 hours) and exercises either in separate sessions or integrated into the lectures. The lectures and exercise sessions are not mandatory. There is a written final exam and four internet quizzes based on the homework assignments. The homework assignments consist of analytical exercises. These familiarise the student with the theory and calculations typically required in the practical implementation of the models.


The student is assumed to be familiar with the total differential of the functions, the properties of homogeneous functions and the elements of both probability calculation and linear differential and difference equations.

Recommended optional studies 

A course on difference and differential equations


Aggregation, comparative statics and dynamics as methods of economics

Properties of standard production functions

Growth accounting

Stages of economic development by economic theory

Exogenous growth

  • The Solow growth model for closed and open economies 
  • The role of exogenous technological change 
  • Extensions of the basic model for education and natural resources 

Endogenous growth

  • Production externality 
  • The role of research and development (R&D) 
  • Horizontal innovations (creation of new products) 
  • Vertical innovations (creation of improvements for products) 
  • Non-scale growth models

Endogenous saving

  • Overlapping-generation models 
  • Dynastic family models 
  • Dynamics of consumption (Euler equations)
Study materials and literature 

Lecture slides P.B. Sorensen & H.J. Whitta-Jacobsen. Introducing Advanced Macroeconomics. McGraw-Hill. The publisher (McGraw-Hill) provides material on the internet for the students.

Activities and teaching methods in support of learning 

All material related to the course is delivered through the Moodle area of the course, which also contains a discussion forum where students can discuss issues related to the course with each other and the teacher. Each homework assignment involves multiple-choice questions that the students answer through Moodle before the exercise sessions related to that homework assignment.

Assessment practices and criteria 

The grade on a scale from 0 (fail) to 5 is based on the sum of points earned in the final exam and the quizzes based on the homework assignments. The maximum number of points is 100, of which 60 come from the final exam and 40 can be earned in the quizzes based on the homework assignments. To pass the course, the student must earn at least 50 points in total and at least 30 points from the final exam


Current and future instruction
Functions Name Type cr Teacher Schedule
Registration Macroeconomics 1  Lecture Course  Peter Elmgren 
04.09.19 -25.09.19 wed 16.15-17.45
05.09.19 -10.10.19 thu 16.15-17.45
04.10.19fri 14.15-15.45
09.10.19wed 16.15-17.45
23.10.19wed 10.00-12.00
20.11.19wed 10.00-12.00
18.12.19wed 14.00-16.00

Future examinations
No examinations in WebOodi