ECS507 PhD Macroeconomics II

• 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:

  Knowledge

  • 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

  Skill

  • 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

  None.

• 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

  Pass-fail

• Computer tools

  Matlab