IKE 602E - Advanced Macroeconomics

Course Objectives

The main objective of this course is to introduce workhorse models of which are the starting point for modern macroeconomic theory. The students will also learn recursive methods and their solution methods.

Course Description

The coursework will be structured around the following questions
• What are the basic facts about growth in the advanced and developing world?
• What drives economic growth? What explains the large differences in economic performance across different countries of different times?
• How does the Solow growth model work? What are its short comings?
• What are the fundamentals of the Cass-Koopmans-Ramsey growth model (Neo-classical growth model)?
• What is the Diamond Overlapping Generations model and how does it work?
• How do we redefine a dynamic system in recursive form? What are the solution methods of these recursive systems?