Advanced Macroeconomic Methods

Code

ECON4003

School

Economics

Level

4

Credits

15

Semesters

Spring UK

Summary

This module covers the theory for the solution and estimation of dynamic stochastic models that are widely used in all fields of macroeconomics. The module is structured in a way such that students will be exposed both to theory and the practical implementation of the methods taught. It covers topics from approximation methods for stochastic non-linear macroeconomic models, such as linear and higher-order Taylor approximation as well as dynamic programming techniques. It also exposes students to the empirical evaluation of these models ranging from calibration to classical and Bayesian estimation methods. The module applies the techniques to contemporary general equilibrium macroeconomic models designed for positive and policy analysis such as the New Keynesian model but also models that are designed to explain partial equilibrium behaviour such as consumer saving and industry investment.

Target Students

Available for PGT and PGR students on Economics degree programmes.

Classes

This module will be delivered through a series of lectures.

Assessment

• 30% Coursework: Group Project
• 70% Exam (2-hour): Exam

Assessed by end of spring semester

Educational Aims

Learning Outcomes

A Knowledge and Understanding. Students should demonstrate:
A4 An advanced knowledge of specialisms in economics, including the current state of research in that field
A5 An understanding of institutions, policies and the broader context in which specific economic analysis is applied

B Intellectual Skills. Students should be able to:
B3 Apply economic theory to economic institutions and policies

C Professional and practical skills. Students should be able to:
C3 Apply appropriate quantitative methods (mathematical, statistical, graphical) to data and evidence

D Transferable (key) skills. Students should be able to:
D3 Undertake independent study of an economic subject

Conveners

• Dr Margarita Rubio