Economics 401 --- Advanced Macroeconomics
Fall 2007

Jeffrey Parker

Course Description
Topical Outline and Reading List

Course Description

Content

This course is a continuation of Econ 314. It covers the detailed models of consumption, investment, unemployment, and monetary and fiscal policy that we don't have time to cover in 314.

Format

Because the class is very small, the format will be very open. Students will be expected to participate actively in discussions and perhaps in presentation of theoretical and empirical content. The course will meet regularly until fall break, then conclude.

Prerequisites

Economics 314 is the only prerequisite. Those with some background in statistics and/or econometrics will find this useful.

Office Hours

The instructor will hold office hours on Mondays from 1:30 to 2:30, Tuesdays from 10:00 to 11:00, and Wednesdays from 1:30 to 2:30 in Vollum 229. If these times are not convenient, you may contact him via email or at extension 7308 to arrange an appointment.

Course Requirements

Exams: There will be one exam, which will include both in-class and take-home components. The exam will likely occur shortly after fall break.
Homework: There will be a few homework assignments throughout the course (perhaps 3).
Presentations: In some sections of the course, students will be responsible for selecting and presenting recent empirical studies in class. Each presentation should be 15-20 minutes in length and be accompanied by a short summary of the paper's most important results, how they were generated, and how they fit into the broader theoretical and empirical literature.

Grading

Grades will be based on all evidence of the student's knowledge of the subject matter. Students may demonstrate such knowledge through performance on exams, problem sets, and presentations, as well as through class participation and conversations with the instructor outside of class.

Texts and Other Readings

The main texts for the class will be the third edition of Romer's Advanced Macroeconomics and the instructor's Econ 314 Coursebook, 2007 edition. Updated coursebook chapters will be distributed during our class. Other readings will be assigned from books and journal articles.

Topical Outline and Reading List

Note: Additional readings may be added as the semester progresses.

I. Consumption Theory

†Reading to be done by only a subset of the class. One student will be assigned as a presenter of this paper and two others as discussants to make comments. Role assignments will be made in class.

Problem Set #1 (due Wednesday, 9/12): Romer problems 7.1, 7.8, 7.9, and 7.14. (Note: On problem 7.8, denote expenditures by X rather than E to avoid confusion with the expectations operator.)

II. Investment Theory

Problem Set #2 (due Wednesday, 9/26): Romer problems 8.6, 8.7, and 8.12.

III. Models of Unemployment

IV. Monetary Policy

V. Fiscal Policy

Problem Set #3 (due Wednesday, October 24): Romer problems 9.9, 10.6a, 10.8, 11.10.

Take-home final exam (due Wednesday, November 7)