Master’s Programme in Economics (Research track). Open to doctoral students in economics.
Annually in the second period
After the course, the student should
- Understand and be able to solve macroeconomic models with heterogeneous workers and firms (in particular, the concepts of idiosyncratic uncertainty, misallocation, borrowing constraints, and stationarity issues as covered in partial and general equilibrium setups)
- Understand the search theory applied to macroeconomic models of the labour market (in particular, how search frictions can be used to rationalize the existence of unemployment and wage inequality)
The course consists of lectures (24 hours) and exercise sessions (8 hours), where solutions to the homework assignments are discussed. Participation in lectures and exercise sessions is not mandatory. There is a written final exam based on the lecture material and the homework assignments. The homework assignments consist of analytical exercises. They familiarise the student with the theory and calculations typically required in applying and extending the models that have been studied in the lecture.
|Edeltävät opinnot tai edeltävä osaaminen
The course builds upon the contents of Advanced Macroeconomics 1.
The course builds upon the models studied in the Advanced Macroeconomics 1 course, further introducing uncertainty, market frictions and firm dynamics. As another application of recursive and stochastic macroeconomic models, it introduces search theory for the analysis of labour market issues.
|Oppimateriaali ja kirjallisuus
In addition to the lecture material, selected parts of Recursive Macroeconomic Theory by Ljungqvist and Sargent, 3rd edition (2012, MIT Press; 2nd edition, 2004, available online; Dynamic General Equilibrium Modelling, Computational Methods and Applications by Heer and Maußner,2nd edition (2008, Springer); Labor Economics by Cahuc, Carcillo and Zylberberg, 2nd edition( 2014, MIT Press) that are covered in the course are recommended.
|Oppimista tukevat aktiviteetit ja opetusmenetelmät
Course material is delivered through the course website. Problem sets are designed to support learning of the course material.
|Arviointimenetelmät ja -kriteerit
The grade on a scale from 0 (fail) to 5 is based on the points earned in the final exam (70%) and in the homework assignments (30%).