ECO2061Outline2015S

Instructor

.    Serdar Ozkan: serdar.ozkan[at].utoronto.ca 

.    Office Hours: Thursdays, 2-4pm or by appointment

.    Office: Max Gluskin House, Rm 230 

Course Description

The objective of this course is to introduce you to the study of macroeconomics at the advanced level. This means that we will use rigorous models and employ (dynamic) optimization techniques to present and analyze macroeconomic theories. A common theme across the models we will study is that economic aggregates are the equilibrium result of the optimizing decisions made by rational agents at the individual level. We will employ this rigorous approach, not as an end in itself, but as a means to obtain disciplined insights into the important questions that trouble macroeconomists. The topics we will cover include economic growth, business fluctuations, consumption and investment, employment and unemployment, and fiscal and monetary policy.

Textbooks

·       Advanced Macroeconomics (4th Edition), by David Romer, McGraw Hill, 2012.

·       Frontiers of Business Cycle Research, by Cooley, T. (1995), Princeton University Press.

·       Big Ideas in Macroeconomics: A Nontechnical View, by Kartik B. Athreya (2014), MIT Press

Evaluation

·       Scheme A: 2 Assignments  (10%) + Midterm (40%) + Final (50%), 

     Scheme B: 1st Assignment  (5%) + 2nd Assignment  (10%) + Midterm (35%) + Final (50%). 

     Whichever of these two schemes gives you a higher grade at the end of the semester will be the scheme that applies to you (i.e., your final grade will be the maximum of your grade under scheme A and under scheme B).

·       The assignments must be handed in on the pre-specified dates. No late submissions will be accepted. If a problem set is not handed in on time, for a justified and documented reason, the weight will shift to the final exam.

·       The midterm test will be held during class time on Wednesday February 25th, 2015. There will be no make-up exam for the midterm test. If you provide appropriate and timely documentation for missing the midterm, the weight will be transferred to the final exam.

·       The final exam will be held at a date and location to be set by the University. The final exam will include all the material covered in the course. Final exam will be held on Friday, 10 April 2015 between 2-5pm at Sidney Smith Hall Room 1085.

Lecture Hours

·       Every other Tuesday, 2-4pm, at WI 1017: Jan 6, Jan 20, Feb 3, Feb 24, Mar 10, Mar 24

·       Wednesdays, 2-4pm, at ES B142.

Tutorials

·       Every other Tuesday, 2-4pm, at WI 1017: Jan 13, Jan 27, Feb 10, Mar 3, Mar 17, Mar 31.

Teaching Assistant

·       Stephen Ayerst: stephen.ayerst[at]mail.utoronto.ca

·       Office Hours: Mondays, 3-5pm, at GE 313

Preliminary (and Tentative) List of Topics and Reading List 

Week #1: Introduction and Modern Macroeconomics Framework

·      Slides

·      Prescott E.C., The Transformation of Macroeconomic Policy and Research, 2004 Nobel Prize Lecture.

·      Jesus Fernandez-Villaverde and Dirk Krueger, Macroeconomics Notes: Chapter 4 and Chapter 5.

·      Dirk Krueger, Macroeconomic Theory: Chapter 2

Week #2: Solow Growth Model

Week #10: Real Business Cycle Theory, Value function iteration

·      RBC lides

·      Matlab code that performs the value function iteration for neo-classical growth model in the slides. 

·      There is a small sub-section on value function iteration here: Dirk Krueger, Macroeconomic Theory: Chapter 3

Week #11 and #12: Monetary Business Cycle Models