EC302-Advanced Macroeconomics

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Spring term module
Pre-requisites: EC201 Intermediate Microeconomics and EC202 Intermediate Macroeconomics and EC206 Intermediate Mathematics for Economics or EC201 Intermediate Microeconomics and EC202 Intermediate Macroeconomics and MA2DE Differential Equations and MA1RA1 Real Analysis I or EC201NU Intermediate Microeconomics and EC202NU Intermediate Macroeconomics and EC206NU Intermediate Mathematics for Economics
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Dr Alexander Mihailov
Email: a.mihailov@reading.ac.uk

Type of module:

Summary module description:
This module covers major theories of long-run economic growth and short-run economic fluctuations. It looks at issues such as what causes economies to grow, why some countries are richer than others, and what poorer nations can do to catch up. It then looks at alternative explanations for what causes economies to fluctuate in the short run and what role the government can, or should play, in smoothing out fluctuations.

Aims:

To gain analytical and computational skills on theoretical modelling.

To learn to utilise an analytical framework within which to ask and answer fundamental questions about economic growth, business cycles and macroeconomic policy. To learn about, and understand, the relative merits of different schools of thought in modern macroeconomics.

To learn how to code and run dynamic stochastic general equilibrium models using Dynare and MATLAB.

Assessable learning outcomes:

To apply and extend the principles developed in Part 2 Intermediate Macroeconomics and Intermediate Microeconomics to the analysis of important macroeconomic problems. At the end of the module students should be able to:

• understand and explain the major sources of long run economic growth and short run business cycles;


• define the scope for, and limitations of, monetary and fiscal policy to achieve particular macroeconomic objectives.

Practical experience with understanding how to code and run dynamic-stochastic general equilibrium models using Dynare and MATLAB.

Additional outcomes:
Students should have a broad understanding of the evolution of modern macroeconomics, especially pertaining to economic growth and business cycles.

Outline content:

Theories of long run economic growth: starting with the Solow model, discussing the growth accounting, the role of human capital and the convergence hypothesis, then developing endogenous growth models.



Theories of short run economic fluctuations: starting with the Real Business Cycle model and developing in detail modern New Keynesian macroeconomics and its benchmark model variations and applications.

Brief description of teaching and learning methods:
Teaching is done primarily through lectures.

Contact hours:

��	Autumn	Spring	Summer
Lectures		20	2
Tutorials		5
Practicals classes and workshops		5
Guided independent study:		150	18
��	��	��	��
Total hours by term	0	180	20
��	��	��	��
Total hours for module	200

Summative Assessment Methods:

Method	Percentage
Written exam	70
Set exercise	30

Summative assessment- Examinations:

One 3-hour in-person exam that consists of an unseen written paper which counts towards 70% of the overall module mark.

Part 3 examinations are held in the Summer term.

The examination for this module will require a narrowly defined time window and is likely to be held in a dedicated exam venue.

Summative assessment- Coursework and in-class tests:

Coursework has a weight of 30% of the final assessment mark. It will consist of one problem set.

Formative assessment methods:

Penalties for late submission:

The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: /cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:
A minimum overall mark of 40%.

Reassessment arrangements:
Re-examination for all modules takes place in August/September of the same year.
Re-assessment is by examination only; coursework is not included at the second attempt.

Additional Costs (specified where applicable):

1) Required text books:��Two compulsory/main textbooks: “Introduction to Economic Growth”, by Charles I. Jones and Dietrich Vollrath, published by W.W. Norton &Co., 2013 (3rd ed. ISBN: 9780393919172 paperback) (paperback price at Blackwell lists: £64.78) “Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework and Its Applications”, by Jordi Gali, published by Princeton University Press, 2015 (2nd ed. ISBN: 9780691164786 hardback - price at Blackwell lists: £48.95)

2) Specialist equipment or materials:����

3) Specialist clothing, footwear or headgear:����

4) Printing and binding:��There may be optional costs associated with photocopying or printing sources listed on the reading list relating to this module. Please note that the Library charges approximately 5p per photocopy.

5) Computers and devices with a particular specification:����

6) Travel, accommodation and subsistence:����

Last updated: 24 August 2023