Advanced Macroeconomics

Advanced Macroeconomics
Theory of determining national income, employment, inflation, and interest rates. Issues of economic fluctuations, economic growth, and monetary and fiscal policy.
 Hours3.0 Credit, 3.0 Lecture, 0.0 Lab
 PrerequisitesECON 381 & ECON 382 & ECON 388
 ProgramsContaining ECON 581
Course Outcomes

Econ 581 students will be able to

  1. Acquire a toolset for analyzing modern macroeconomic models.
  2. Demonstrate an understanding of basic dynamic stochastic general equilibrium (DSGE) macroeconomic modeling, including:
  • How to set up a model.
  • How to render it stationary, if necessary.
  • How to solve for the model's steady state both analytically and numerically.
  • How to solve for the model's dynamics using various numerical techniques.
  • How to calibrate the model.
  • How to simulate the model economy.
  • How to generate impulse response functions.
  • How to generate data moments.
  • How to estimate model parameters using simulated method of moments
  1. Use MATLAB and Dynare, software packages widely used in macroeconomic model simulation.
  2. Demonstrate an understanding of other macroeconomic models, such as:
  • Overlapping generations (OLG) models.
  • Continuous-time Ramsey-style models.
  1. Estimate and interpret structural vector autoregression (SVAR) empirical models.
  2. Demonstrate an understanding of current issues being addressed in macroeconomics research.
  3. Be prepared to perform well in the macroeconomics classes in the top Ph.D. programs in economics.