PhD Macroeconomics II

ECS507 PhD Macroeconomics II

Autumn 2022

Spring 2023
  • Topics

    This course is designed for 1st Year PhD students. We will use a basic neo-classical macro model as a workhorse to introduce price frictions and heterogeneity in turn. Knowledge of a basic Real Business cycle (RBC) model is a prerequisite.

    The models we use and tools we learn is of interest even if you do not wish to become a macroeconomist. Several features, such as monopolistic competition and incomplete markets, are used in other fields as well.

  • Learning outcome

    On successful course completion, the student will be able to:


    • formulate the standard RBC model
    • discuss how to introduce sticky prices into RBC models
    • solve for optimal monetary policy
    • understand the consequences of incomplete markets and household heterogeneity
    • know the basics of so-called heterogenous agent new Keynesian (HANK) models


    • formulate and solve a dynamic optimization problem
    • solve system of linear Equations using log linearization

    General competence:

    • master how to think in a model
    • build a Research idea

  • Teaching

    Plenary lectures.

    Lectures will be filmed and/or streamed.

  • Restricted access

    • PhD candidates from Department of Economics, NHH
    • PhD candidates from other Departments at NHH
    • PhD candidates from University of Bergen
    • PhD candidates from other higher educational institutions
    • Promising master students if approved by course responsible

  • Recommended prerequisites

    ECS506 PhD Macroeconomics I

  • Compulsory Activity


  • Assessment

    Grading will be based on a term paper that is to be completed individually. The term paper is handed out during the last week of lectures, and is to be completed within three weeks.

  • Grading Scale


  • Computer tools



ECTS Credits
Teaching language

Spring. Offered Spring 2022.

Course responsible

Assistant Professor Markus Karlman, Department of Economics (main course responsible)

Associate Professor Krisztina Molnar, Department of Economics