0901/178.700 Paper No and title: 178.700 MACROECONOMICS I
Credit value: 15 Credits Semester: First
Coordinator: Professor Hans-Jürgen Engelbrecht Room: SST4.16 Tel: 350 5968 Email: H.Engelbrecht@massey.ac.nz
Webpage: http://www.massey.ac.nz/~hengelbr/
Calendar prescription: The paper provides an advanced exposition as well as critical assessment of selected topics from macroeconomic theory, for example
‘old’ and ‘new’ growth theory, traditional Keynesian theories, microeconomic foundations of incomplete nominal adjustment, theories of unemployment.
Learning outcomes: Students who successfully complete this paper should be able to:
1. Demonstrate advanced knowledge and critical understanding of macroeconomic theory.
2. Appreciate the interaction between theory and empirical (i.e.
applied) research in macroeconomics.
3. Demonstrate critical understanding of the theoretical and empirical literature on a major international and/or domestic macroeconomic issue.
Outline: Lectures will be based mainly (but not exclusively) on: David Romer, Advanced Macroeconomics, Third Edition, McGraw-Hill, 2006.
Below is the indicative list of major topics and chapter numbers (there may be minor changes):
1. The Solow Growth Model (chapter 1; except section 1.8).
2. New Growth Theory (chapter 3, except sections 3.5 and 3.11) (there will be an additional section on international knowledge spillovers).
3. Traditional Keynesian Theories (chapter 5, except section 5.2).
4. Microeconomic Foundations of Incomplete Nominal Adjustment (chapter 6: Part A, Part B (except section 6.7), Part C: 6.9, 6.12 (parts), 6.13.
5. Theories of Unemployment (chapter 9, sections 9.1 to 9.3; sections 9.6, 9.7 and 9.9 only if time permits).
Requirements: This is a graduate-level paper. Students are expected to have at least completed 178.200 or an equivalent second year macro paper. It is recommended that students have previously done 178.300. Some knowledge of algebra and calculus is required.
Evaluation: One test (60 mins), Week 7, Tuesday, 7 April 2009 20%
One essay (2,500-3000 words), due Week 11,
21 May 2009, 5pm 30%
Two hour final exam (11 June 2009, 9:20am) 50%
Extramural availability: Not available
Textbook: Students should purchase David Romer (2006), Advanced Macro- economics, 3rd edition, McGraw-Hill/Irwin. A reading list which contains additional references will be handed out early in the semester.
Some of these additional references are compulsory readings. A few additional references might be added during the semester as appropriate.
Timetable: Three hours of lectures per week:
Tuesday 10:00 - 12:00 SST4.21 Thursday 14:00 - 15:00 SST4.21
