Seminar on Macroeconomics I

Spring 2018
Wednesday, 12:10–15:00 @ TSMC732

Instructor: Jenn-Hong Tang

E-mail: jhtang@mx.nthu.edu.tw
Office: TSMC727

Course Description
This course introduces dynamic general equilibrium models and their applications in modern macroeco-
nomics. To make the course self-contained, fundamental mathematical tools used in dynamic optimiza-
tion will also be covered.

Course Objectives
The students are expected to
1. get acquainted with the economic issues;
2. learn and modeling skills in dynamic macroeconomics.

Course Requirements & Grading Policy

The grade will be based on homework assignments (10%), two open-book quizzes (20%), and one open-
book exam (70%).

Course Outline
♦ Dynamic Optimization [Ace09] Chs. 6, 7, 16; [BS04*] Appendix; [LS04] Chs. 3, 4.
♦ Facts about Growth & the Solow Model [Ace09] Chs. 1–3; [Rom12] Chs. 1, 4; [BS04] Chs. I, 1,
2; [Jon16].
♦ The Ramsey-Cass-Koopman Model [Ace09] Ch. 8; [BS04*] Ch. 2; [Rom12] Ch. 2.
♦ Endogenous Growth Models [Ace09] Chs. 11–13; [BS04] Chs. 4–6; [Rom12] Ch. 3.
♦ Equilibrium with Complete Markets [Ace09] Chs. 17; [Bew07*] Ch. 7; [LS04*] Ch. 8.
♦ Real Business Cycle Theory [Rom12] Ch. 5; [HO16]; [Pre16]; [Ram16].
♦ Overlapping Generations Models [Ace09] Ch. 9; [dM02*] Chs. 1–3.

References
[Ace09] Daron Acemoglu. Introduction to Modern Economic Growth. Princeton University Press, 2009.
[Bew07] Truman F. Bewley. General Equilibrium, Overlapping Generations Models, and Optimal Growth
Theory. Harvard University Press, 2007.
[BS04] Robert J. Barro and Xavier Sala-i-Martin. Economic Growth. MIT Press, Cambridge, MA,
second edition, 2004.
[dM02] David de la Croix and Philippe Michel. A Theory of Economic Growth: Dynamics and Policy
in Overlapping Generations. Cambridge University Press, Cambridge, UK, 2002.

1
[HO16] Gary D. Hansen and Lee E. Ohanian. Neoclassical models in macroeconomics. In John B.
Taylor and Harald Uhlig, editors, Handbook of Macroeconomics, volume 2B, chapter 26, pages
2043–1230. Else, 2016.
[Jon16] Charles I. Jones. Facts of economic growth. In John B. Taylor and Harald Uhlig, editors,
Handbook of Macroeconomics, volume 2A, chapter 1, pages 3–69. Elsevier, 2016.
[LS04] Lars Ljungqvist and Thomas J. Sargent. Recursive Macroeconomic Theory. MIT Press, second
edition, 2004.
[Pre16] Edward C. Prescott. RBC methodology and the development of aggregate economic theory. In
John B. Taylor and Harald Uhlig, editors, Handbook of Macroeconomics, volume 2B, chapter 22,
pages 1759–1787. Elsevier, 2016.
[Ram16] V. A. Ramey. Macroeconomic shocks and their propagation. In John B. Taylor and Harald
Uhlig, editors, Handbook of Macroeconomics, volume 2A, chapter 2, pages 71–162. Elsevier,
2016.

[Rom12] David Romer. Advanced Macroeconomics. McGraw-Hill, fourth edition, 2012.