ECON 7122 - Macroeconomics IV

North Terrace Campus - Semester 1 - 2015

This course serves as an introduction to more advanced methods and theories. Techniques include a more formal treatment of comparative statics, dynamics and stability analysis and may involve matrix algebra as well as simple differential and difference equations. The goal of the course is typically to introduce the student to dynamic stochastic general equilibrium models as well as the theory of rational expectations equilibrium.

  • General Course Information
    Course Details
    Course Code ECON 7122
    Course Macroeconomics IV
    Coordinating Unit School of Economics
    Term Semester 1
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 4 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites ECON 3514 or ECON 7096 or equivalent
    Assumed Knowledge ECON 3519 or ECON 7227 or Static general equilibrium models & optimisation theory
    Course Description This course serves as an introduction to more advanced methods and theories. Techniques include a more formal treatment of comparative statics, dynamics and stability analysis and may involve matrix algebra as well as simple differential and difference equations. The goal of the course is typically to introduce the student to dynamic stochastic general equilibrium models as well as the theory of rational expectations equilibrium.
    Course Staff

    Course Coordinator: Dr Jacob Wong

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    On successful completion of this course students will be able to:

    1 The objective of the course is for the students to obtain a working knowledge of the methodology exercised in the study of modern macroeconomics. Students are expected to be able to apply this knowledge at policy institutions or in continued studies at the postgraduate level
    2 By the end of the course students are to have sufficient tools to have a basic understanding of most of the academic literature in macroeconomics
    3 Students should be able to form simple theories related to the mechanisms that are regarded as important in the functioning of a macroeconomy
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 1,2,3
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 1,3
    A proficiency in the appropriate use of contemporary technologies. 1,3
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 3
    A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 1
  • Learning Resources
    Recommended Resources
    Class notes and additional required readings will be posted on the course MyUni website. Books that you may want to reference during the course include:
    • "A First Course in Optimization Theory'' - Rangarajan K. Sundaram
    • "Dynamic Macroeconomic Theory'' - Thomas Sargent
    • "Recursive Methods in Economic Dynamics'' - Robert Lucas Jr. and Nancy Stokey (with Edward Prescott)
    • "Macroeconomic Theory'' - Thomas Sargent
    • "Recursive Macroeconomic Theory'' - Lars Ljungqvist and Thomas Sargent
    • "Advanced Macroeconomics'' - David Romer
    • "Lectures on Macroeconomics'' - Olivier J. Blanchard and Stanley Fischer
    • "Introduction to Modern Economic Growth'' - Daron Acemoglu"
    • Economic Growth'' by Robert J. Barro and Xavier Sala-I-Martin
    • "Foundations of Interational Macroeconomics'' - Maurice Obstfeld and Kenneth Rogoff
    • "The Macroeconomics of Self-Fulfilling Prophecies'' - Roger Farmer
    Online Learning
    Course materials should be made available through the course MyUni website.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Lectures supported by group learning through assignments.

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    Students should be prepared to allocate at least 8 hours per week to obtain a working knowledge of the course material.
    Learning Activities Summary

    Dynamic Optimization

    -The Method of Lagrange and the Method of Kuhn-Tucker
    -Dynamic Programming

    General Equilibrium Under Certainty

    The Overlapping Generations Model


    Dealing with Linear Difference Equations

    Rational Expectations

    General Equilibrium Under Uncertainty

    Business Cycle Theory

    -Real Business Cycle Models
      *Simulating models
    -Equilibrium Unemployment Theory 
    -Optimal Taxation

    Note : This outline is tentative and I reserve the right to alter the course schedule as the term progresses.

  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Performance will be evaluated using the following breakdown:

    · Homework: Assignments worth 20% of overall grade.

    · Midterm Exam: worth 30% of overall grade.

    · Final Exam or Project: worth 50% of overall grade.
    Assessment Detail
    Each student is to submit his/her own copy of the homework assignments. However, you are strongly encouraged to work in small groups in order to learn from each other. No late homework will be accepted and there will be no make-up assignments.
    The tentative date for the midterm exam is Monday, April 27, 2015. The final exam will be cumulative but will emphasize post midterm material. Unless proper documentation is provided, there will be no make-up midterms and you must write all exams on the scheduled dates.
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

    Additional Assessment

    If a student receives 45-49 for their final mark for the course they will automatically be granted an additional assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight as the original exam unless an alternative requirement (for example a hurdle requirement) is stated in this semester’s Course Outline. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has passed the course, they will receive 50 Pass as their final result for the course (no higher) but if the calculation totals less than 50, their grade will be Fail and the higher of the original mark or the mark following the Additional Assessment will be recorded as the final result.
  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy ( course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.