ECON 4012 - Macroeconomics IV (H)

North Terrace Campus - Semester 1 - 2024

This course serves as an introduction to advanced methods and theories in macroeconomics. Techniques may 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 course typically introduces the student to dynamic stochastic general equilibrium models and the theory of rational expectations equilibrium as a tool to construct models for policy examination.

  • General Course Information
    Course Details
    Course Code ECON 4012
    Course Macroeconomics IV (H)
    Coordinating Unit Economics
    Term Semester 1
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 4 hours per week
    Available for Study Abroad and Exchange N
    Incompatible ECON 7122
    Restrictions Available only to students enrolled in the Bachelor of Economics (Honours) program
    Assessment Typically individual assignments, midterm and final exam or project
    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. Apply methodology exercised in the study of modern macroeconomics.
    2. 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)

    Attribute 1: Deep discipline knowledge and intellectual breadth

    Graduates have comprehensive knowledge and understanding of their subject area, the ability to engage with different traditions of thought, and the ability to apply their knowledge in practice including in multi-disciplinary or multi-professional contexts.


    Attribute 2: Creative and critical thinking, and problem solving

    Graduates are effective problems-solvers, able to apply critical, creative and evidence-based thinking to conceive innovative responses to future challenges.


    Attribute 3: Teamwork and communication skills

    Graduates convey ideas and information effectively to a range of audiences for a variety of purposes and contribute in a positive and collaborative manner to achieving common goals.


    Attribute 4: Professionalism and leadership readiness

    Graduates engage in professional behaviour and have the potential to be entrepreneurial and take leadership roles in their chosen occupations or careers and communities.


    Attribute 5: Intercultural and ethical competency

    Graduates are responsible and effective global citizens whose personal values and practices are consistent with their roles as responsible members of society.


    Attribute 8: Self-awareness and emotional intelligence

    Graduates are self-aware and reflective; they are flexible and resilient and have the capacity to accept and give constructive feedback; they act with integrity and take responsibility for their actions.

  • 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:
    • "Mathematics for Economists" - Carl P. Simon and Lawrence Blume
    • "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

    Applications of General Equilibrium Theory Under Uncertainty

    -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
    Assessment Task Due Weighting Learning Outcome
    Assignments See MyUni 20% 1
    Midterm Exam Week 6 or 7 30% 1
    Final Exam or Final Project Exam Period 50% 1, 2
    Total 100%
    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 dates for class assessments will be posted on the course MyUni page.

    The final exam or final project 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.  Where appropriate documentation is provided a make-up assessment will be provided.
    Course Grading

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

    M11 (Honours Mark Scheme)
    GradeGrade reflects following criteria for allocation of gradeReported on Official Transcript
    Fail A mark between 1-49 F
    Third Class A mark between 50-59 3
    Second Class Div B A mark between 60-69 2B
    Second Class Div A A mark between 70-79 2A
    First Class A mark between 80-100 1
    Result Pending An interim result RP
    Continuing Continuing CN

    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.

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