PhD Macroeconomics II

ECS507 PhD Macroeconomics II

Autumn 2021

  • 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:


    • discuss how to introduce sticky prices into RBC models
    • solve for optimal monetary policy
    • assess the consequences of basic labor market imperfections
    • 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.

  • Recommended prerequisites

    ECS506 PhD Macroeconomics I

  • Requirements for course approval


  • Assessment

    Grading will be based on four individual assignments and one individual term paper. The student needs to receive a passing grade on all assignments and the term paper to pass the course.

    Assignments are handed out during the course, and are to be completed within two weeks. Assignments are to be handed in 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 2021.

Course responsible

Assistant Professor Markus Karlman, Department of Economics

Professor II Tommy Sveen, Department of Economics