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ECOM-R318 Advanced Macroeconomics 3, 5 cr 
Code ECOM-R318  Validity 01.01.2017 -
Name Advanced Macroeconomics 3  Abbreviation Adv Macro 3 
Scope5 cr   
TypeAdvanced studies
  GradingGeneral scale 
    Can be taken more than onceno
Unit Master's Programme in Economics 

Antti Ripatti 

Target group 

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


Annually in the third period

Learning outcomes 

After the course, the student should

  • Be able to calculate stylised facts using macroeconomic data 
  • Be able to linearise and solve linear dynamic models 
  • Understand and master the real business cycle model (RBC) 
  • Be able to augment the RBC model with other economic features and shocks
Completion methods 

The course consists of lectures (24 hours) and exercise sessions (8 hours), where solutions to the homework assignments are discussed. The lectures and exercise sessions are 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. They also involve the interpretation of model economies.


The course builds upon the contents of Advanced Macroeconomics 1 and 2


The course starts with an introduction to business cycle facts and methods. Then we present the main theoretical concepts and methods for solving and calibrating stochastic dynamic general equilibrium (DSGE) models, starting with the basic real business cycle model (RBC). Further topics include the extension to the open economy as well as the analysis of financial frictions and asset pricing.

Study materials and literature 

The course will mainly draw elements from the following books:

  • David DeJong and Chetan Dave (2011). Structural Macroeconometrics, 2nd ed., Princeton University Press 
  • Michael Wickens (2011). Macroeconomic Theory, 2 ed., Princeton University Press 
  • George McCandless (2008). The ABCs of RBCs. An Introduction to Dynamic Macroeconomic Models, Harvard University Press 
  • Stephanie Schmitt-Grohe and Martin Uribe, Open Economy Macroeconomics, textbook manuscript, current version at: 
Activities and teaching methods in support of learning 

Course material is delivered through the course website. 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.


Current and future instruction
Functions Name Type cr Teacher Schedule
registration period has not begun Advanced Macroeconomics 3  Lecture Course   
14.01.20 -18.02.20 tue 10.15-11.45
15.01.20 -19.02.20 wed 10.15-11.45
22.01.20wed 14.15-15.45
05.02.20wed 14.15-15.45
19.02.20 -26.02.20 wed 14.15-15.45
04.03.20wed 10.00-12.00
28.04.20tue 10.00-12.00

Future examinations
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