ECON7750 · Economics

Macroeconomic Theory I

Morrissey College of Arts & Sciences

The course covers the standard models of exogenous and endogenous growth, mostly in a deterministic setting: The Solow-Swan model without and with human capital, the Ramsey growth model with infinitely lived optimizing agents, overlapping generation models without and with altruism, fiscal policy, models with human capital, basic AK models of endogenous growth, two sector models of endogenous growth, product variety models and Schumpeterian growth models. We will also review some crucial empirical papers on applied growth, starting from those on the fundamental causes of growth. In the last part of the course we cover the Ramsey model in discrete time with a stochastic technology shock and the choice of investment with adjustment costs and consumption in a stochastic setting.