Macroeconomics III
Code: 102382 ECTS Credits: 6| Degree | Type | Year | Semester |
|---|---|---|---|
| 2501572 Business Administration and Management | OT | 4 | 0 |
| 2501573 Economics | OB | 3 | 2 |
Contact
- Name:
- Valeri Sorolla Amat
- Email:
- Valeri.Sorolla@uab.cat
Use of Languages
- Principal working language:
- catalan (cat)
- Some groups entirely in English:
- Yes
- Some groups entirely in Catalan:
- Yes
- Some groups entirely in Spanish:
- No
Prerequisites
Introduction to Economics.
Mathematics I.
Mathematics II.
Statistics I.
Macroeconomics I.
Macroeconomics II.
Objectives and Contextualisation
This course presents the standard models to study the economic growth of countries and the determination of their long-run income. It analyzes how fiscal and monetary policy affect the long-run economic variables and it presents a brief introduction to economic fluctuations.
Competences
- Business Administration and Management
- Apply mathematical instruments to synthesise complex economic-business situations.
- Capacity for adapting to changing environments.
- Capacity for independent learning in the future, gaining more profound knowledge of previous areas or learning new topics.
- Capacity for oral and written communication in Catalan, Spanish and English, which enables synthesis and oral and written presentation of the work carried out.
- Demonstrate an understanding of the basic and intermediate foundations of macroeconomics.
- Demonstrate initiative and work individually when the situation requires it.
- Demonstrate knowledge of the interrelationships between different economies, the role of national and international economies, their evolution and the consequences that may be produced for the company.
- Organise the work in terms of good time management, organisation and planning.
- Select and generate the information necessary for each problem, analyse it and take decisions based on that information.
- Economics
- Demonstrate knowledge of the interrelationships between different economies, the role of national and international economies, their evolution and the consequences that may be produced for the company.
Learning Outcomes
- A capacity of oral and written communication in Catalan, Spanish and English, which allows them to summarise and present the work conducted both orally and in writing.
- Assess the impact of technological and demographic change and accumulation of capital on levels of wellbeing.
- Capacity to adapt to changing environments.
- Capacity to continue future learning independently, acquiring further knowledge and exploring new areas of knowledge.
- Demonstrate initiative and work independently when required.
- Describe the determinants of economic growth and the international differences in income per capita.
- Explain the effects of fiscal and monetary policies on the economy using dynamic general equilibrium models.
- Formalise the intertemporal decisions of saving, consumption and investment.
- Organise work, in terms of good time management and organisation and planning.
- Select and generate the information needed for each problem, analyse it and make decisions based on this information.
- Understand the dynamic nature of economic decisions, and the microeconomic foundations of modern macroeconomics.
Content
PART I: DYNAMIC MACROECONOMIC MODELS
1. Introduction to dynamic general equilibrium macroeconomics
2. Infinite horizon models
2.1. The Solow growth model
2.2. The planner's problem
2.3. Efficiency of the competitive equilibrium
2.4. Exogenous technological progress
2.5. The leisure-labour decision
3. Overlapping generations (OLG) models
3.1. The planner's problem
3.2. Competitive equilibrium
3.3. Efficiency of the competitive equilibrium
3.4. The model with production
PART II: MACROECONOMIC POLICY
4. Fiscal policy
4.1. The goverment's budget constraint
4.2. The Ricardian Equivalence Theorem
4.3. Proportional taxes
4.4. Financing pension systems
5. Monetary policy
5.1. The OLG model with money
5.2. Money in the utility function
5.3. Money with a cash-in-advance constraint
PART III: BUSINESS CYCLES
6. Economic fluctuations
6.1. The real business cycle model without capital
6.2. The real business cycle model with capital
6.3. Extensions of the real business cycle model
Methodology
Planified teaching will be offered on-campus.
In this subject we combine classical lectures with ICT support with more applied sessions devoted to solving problem sets and exercises.
The proposed teaching methodology may undergo some modifications according to the restrictions imposed by the health authorities on on-campus courses.
Annotation: Within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.
Activities
| Title | Hours | ECTS | Learning Outcomes |
|---|---|---|---|
| Type: Directed | |||
| Lectures Homework | 17 | 0.68 | 2, 1, 6, 11, 7, 8, 10 |
| Theory Lectures | 32.5 | 1.3 | 2, 6, 11, 7, 8 |
| Type: Supervised | |||
| Office Hours | 2 | 0.08 | 2, 1, 6, 11, 7, 8, 10 |
| Type: Autonomous | |||
| Studying, reading and homework | 94.5 | 3.78 | 2, 3, 1, 4, 5, 6, 11, 7, 8, 9, 10 |
Assessment
Evaluation criteria:
The evaluation of the course will be carried out continuously and will include three evaluation activities of two different typologies, one of them will be a final exam with a weight of 50% in the final grade, one midterm exam with a weight of 40% in the final grade, and a series of homeworks with a total weight of 10% in the final grade.
Calendar of evaluation activities
The dates of the evaluation activities (midterm exams, exercises in the classroom, assignments, ...) will be announced well in advance during the semester.
The date of the final exam is scheduled in the assessment calendar of the Faculty.
"The dates of evaluation activities cannot be modified, unless there is an exceptional andduly justified reason why an evaluation activity cannot be carried out. In this case, the degree coordinator will contact both the teaching staff and the affected student, and a new date will be scheduled within the same academic period to make up for the missed evaluation activity." Section 1 of Article 115. Calendar of evaluation activities (Academic Regulations UAB). Students of the Faculty of Economics and Business, who in accordance with the previous paragraph need to change an evaluation activity date must process the request by filling out an Application for exams' reschedule e-Form to exam rescheduling
Grade revision process
Students will be informed of the procedure, place, date and time of grade revision following University regulations.
Retake Process
"To be eligible to participate in the retake process, it is required for students to have been previously been evaluated for at least two thirds of the total evaluation activities of the subject." Section 3 of Article 112 ter. The recovery (UAB Academic Regulations). Additionally, it is required that the student to have achieved an average grade of the subject between 3.5 and 4.9.
The date of the retake exam will be posted in the calendar of evaluation activities of the Faculty. Students who take this exam and pass, will get a grade of 5 for the subject. If the student does not pass the retake, the grade will remain unchanged, and hence, student will fail thecourse.
Irregularities in evaluation activities
In spite of other disciplinary measures deemed appropriate, and in accordance with current academic regulations, "in the case that the student makes any irregularity that could lead to a significant variation in the grade of an evaluation activity, it will be graded with a 0, regardless of the disciplinary process that can be instructed. In case of various irregularities occur in the evaluation of the same subject, the final grade of this subject will be 0". Section 10 of Article 116. Results of the evaluation. (UAB Academic Regulations).
The proposed evaluation activities may undergo some changes according to the restrictions imposed by the health autohorities on on-campus courses
Assessment Activities
| Title | Weighting | Hours | ECTS | Learning Outcomes |
|---|---|---|---|---|
| 1 Midterm exam | 40% of the final grade | 2 | 0.08 | 2, 3, 1, 4, 5, 6, 11, 7, 8, 9, 10 |
| Final exam | 50% of the final grade | 2 | 0.08 | 2, 3, 1, 4, 6, 11, 7, 8, 9, 10 |
| Homework | 10% of the final grade | 0 | 0 | 2, 1, 6, 11, 7, 8, 10 |
Bibliography
Acemoglu, D. (2009); "Introduction to Modern Economic Growth", Princeton University Press
Krueger, D. (2012); "Macroeconomic Theory", unpublished manuscript, http://www.ssc.wisc.edu/~aseshadr/econ714/MacroTheory.pdf
Galí, J. (2016); "Real Business Cycle Models", class materials, http://www.crei.cat/wp-content/uploads/2016/07/rbc_models_april2018.pdf
Romer, D. (2002); "Advanced Macroeconomics. Second Edition", McGraw Hill.
Software
Excel, Word