Data on the course

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ECOM-R313 Advanced Macroeconomics 2, 5 cr 
Code ECOM-R313  Validity 01.01.2017 -
Name Advanced Macroeconomics 2  Abbreviation Adv Macro 2 
Scope5 cr   
TypeAdvanced studies
  GradingGeneral scale 
    Can be taken more than onceno
Unit Master's Programme in Economics 

Oskari Vähämaa 

Target group 

Master’s Programme in Economics (Research track). Open to doctoral students in economics.


Annually in the second period

Learning outcomes 

After the course, the student should

  • Understand and be able to solve macroeconomic models with incomplete markets (in particular, the concepts of idiosyncratic uncertainty, borrowing constraint, and stationarity issues as covered in partial and general equilibrium setups) 
  • Understand the search and matching theory applied to macroeconomic models of the labour market (in particular, concepts such as labour market tightness and reservation wages as determinants of the unemployment rate)
Completion methods 

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, but completing 40% of the homework assignments is required for taking the exam. 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.


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, capital market incompleteness and general equilibrium stochasticity. As another application of recursive and stochastic macroeconomic models, it introduces search and matching theory for the analysis of labour market issues.

Study materials and literature 

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); Applied Intertemporal Optimization by Wälde (2011, available online); Macroeconomic Theory: A Dynamic General Equilibrium Approach by Wickens, 2nd edition (2012); Unemployment Theory by Pissarides (2000, MIT Press) that are covered in the course are recommended.

Activities and teaching methods in support of learning 

Course material is delivered through the course website. The website also contains moderated discussion groups that support learning. Problem sets are designed to support learning of the course material.

Assessment practices and criteria 

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%).


Current and future instruction
Functions Name Type cr Teacher Schedule
registration period has ended Advanced Macroeconomics 2  Lecture Course  Oskari Vähämaa  27.10.20 -03.03.21

Future examinations
No examinations in WebOodi