MACROECONOMIC ANALYSIS
Instructional goals
Provide basic notions and methods of advanced macroeconomic theory with special focus on consumption, asset pricing, economic growth and equilibrium
Prerequisites
Elementary macroeconomic and microeconomic theory, basic notions in calculus
Course Contents
Introduction to advanced macroeconomics with focus on the theory of consumption and asset pricing, neoclassical growth, endogenous growth and equilibrium.
Reference Books
Lecture notes provided on the instructor's webpage
Teaching Methods
Lectures, review sessions based on class assignments where students have to make presentations.
Assessment Method
Written exam supplemented by a mid term exam and evaluation of the presentations in the review sessions.
Thesis assignment criteria
NA
Week 1 Contenuto sessioni on line e on campus
The Solow growth model. Dynamic Efficiency.
Week 2 Contenuto sessioni on line e on campus
Optimal growth: framework and solution methods.
Week 3 Contenuto sessioni on line e on campus
Stability analysis, optimal growth with overlapping generations, introducing uncertainty
Week 4 Contenuto sessioni on line e on campus
Savings and consumption in market economies: preferences, budget sets, debt limits, Ponzi games, present value representation of the life-time budget constraint.
Week 5 Contenuto sessioni on line e on campus
The consumption function, the permanent income hypothesis.
Week 6 Contenuto sessioni on line e on campus
Savings and consumption and Euler equations under uncertainty with complete and incomplete markets.
Week 7 Contenuto sessioni on line e on campus
The certainty equivalence model and the notion of precautionary savings.
Week 8 Contenuto sessioni on line e on campus
Asset Pricing, risk premia and market fundamentals.
Week 9 Contenuto sessioni on line e on campus
Equilibrium with complete markets, consumption smoothing and risk sharing.
Week 10 Contenuto sessioni on line e on campus
Competitive equilibria in the Overlapping Generations Model.
Week 11 Contenuto sessioni on line e on campus
Validity and Failure of the First welfare Theorem.
Week 12 Contenuto sessioni on line e on campus
Review.