Course title

Macroeconomic Analysis I

Responsible person
to enter grades
Numbering Code

Day・Period, etc. Thurs1(対面)

開講区分単位数

2nd semester

2.0

Timetable Slot
Code

3J369

Lesson topic
Macroeconomic Analysis I is the basic macroeconomic theory course within the KIMAP program. The course offers amodern treatment of fundamental results in macroeconomics within the framework of dynamic general equilibrium
theory. The first part of this course focuses on microfoundations. Students learn how decisions of individual firms
and consumers can be aggregated into laws of motion of macroeconomic variables. The second part puts particularemphasis on recursive equilibrium of infinite-horizon economies. Students learn how economic fluctuations can beexplained by productivity shocks and government policy. Several applications illustrate how insights from thiscourse can help understand real-world economic phenomena.

Lesson target
Students will be familiarized with the structure of macroeconomic models and the underlying mathematics. After
successful completion of this course, students will be able to understand a good share of articles on macroeconomic
theory in academic journals.

Syllabus and plan
Tentative schedule and topics:
Week 1: Introduction, Mathematical Concepts I
Week 2: Mathematical Concepts II, Present Value
Week 3: The Investment Problem I
Week 4: The Investment Problem II, Convex Duality, Representative Firm
Week 5: Term Structure of Interest Rates, Arbitrage
Week 6: The Consumption Savings Problem I, Representative Consumer
Week 7: Optimization with Infinite Horizon, The Consumption Savings Problem II
Week 8: <Midterm Exam>
Week 9: Permanent Income Hypothesis I, Dynamic General Equilibrium I
Week 10: Dynamic General Equilibrium II, Asset Pricing
Week 11: Markov Chains
Week 12: Stochastic Dynamic Programming
Week 13: Permanent Income Hypothesis II
Week 14: Precautionary Saving, Endogenous Labor Supply
Week 15: <Review Session>
Week 16: <Exam>
Evaluation method
Midterm Exam: 50%
Final Exam: 50%

Evaluation baseline
The exams will test students' understanding of the course content (theory), and their ability to analyze specificexamples (applications). Exam questions will not involve mathematical proofs unless the proposition is simple, butstudents may be asked for counterexamples in order to disprove incorrect propositions.

Notice (include info. on related class)This course is designed for students with an undergraduate degree in economics or related fields. Prior knowledgeof linear algebra, differential calculus, and constrained optimization is expected. To account for heterogeneousbackgrounds, all other necessary mathematical concepts are reviewed when first used. The focus of this course is onmodels of the real economy; that is, systems of real variables such as input, output, real investment, and realinterest rates. The elective course "Monetary Economics" will focus on the influence of nominal variables such as
money supply, nominal interest rates, and inflation.

Review and preparation
Kobe University requires 45 hours of study from students to award one credit, including both in-class instructions
as well as study outside classes. However, depending on your background in mathematics and your research interests,
you may be inclined to invest more time to get the most out of this course. Students are strongly advised to solve
the weekly problem sets before the next lecture. Sample solutions will be provided in advance of the exams. All
lectures are self-contained and can be understood without prior reading of textbook chapters. The textbook iscomplementary and serves to deepen the understanding of all topics covered.

Office hour・Contact information
By appointment via email.

Message for student
This is a graduate level course, and thus more advanced than most courses you took as an undergraduate student.
Should you feel that your educational background is too weak in mathematics, please make sure to catch up as soon
as possible. Please do not hesitate to reach out and ask for additional reference material.

Improvemenets in Teaching

Text

Advanced Macroeconomics, 4th edition (or any other edition of the same textbook) / David Romer : McGraw-Hill
Education ,2012 ,ISBN:9780073511375
Reference Material
Lecture slides will be provided on BEEF+.
Classroom Language
EnglishKeywords
Economic Dynamics

Real Macroeconomic Theory