Winter 2011 Department of Economics
Max Gluskin House
Tel: (416) 978-4962
Course Outline ECO2061H,S
Economic Theory- Macroeconomics (MA)
Time and Location: Lectures will be held every Tuesday 9-11 in SS2127 and every second week on Thursday 9-11 in room SS2108. The other time slots on Thursday in SS2108 are reserved for tutorials. The preliminary schedule is as follows:
Jan 11, 13, 18, 25, 27
Feb 3, 8, 10, 17
March 1, 3 (MIDTERM), 10 (Midterms handed back), 15, 17, 24, 29, 31
Jan 20, Feb 1 (PS #1), Feb 15 (PS#2), March 8, 22 (PS#3)
April 5 (PS#4)
Office Hours: Prof. Alexopoulos will hold office hours by appointment. Ms. Mengxiao Liu firstname.lastname@example.org is the T.A. for the course. She will announce the schedule of her office hours. Her email is: email@example.com
Course Outline: The course is intended to familiarize students with current topics in macroeconomics. Topics covered will include economic growth, consumption and investment, business cycle theory and unemployment. Calculus will be used throughout the course.
Grading: The term grade will be made up of a mid-term exam that will count for 70% of your term grade and three assignments (each worth 10%). The final exam will count for 100% of the Exam mark referred to below.
The final course grade will be calculated as follows
Max (Term Grade × 40% + Exam × 60%, Term Grade × 60% + Exam × 40%)
The mid-term will be scheduled for March 3.
The date of the Final will be announced when the exam timetable is available.
Textbook: Romer, David. Advanced Macroeconomics, 3rd. Edition. McGraw Hill, 2006.
1. Economic Growth.
1.1. The Growth Facts.
1.2. The Neoclassical Growth Model.
1.3. The Planner’s problem.
1.4. The Competitive Equilibrium.
2. Consumption and Investment.
2.1. The Life Cycle and Permanent Income hypothesis.
2.2. Consumption under uncertainty: The Random Walk Hypothesis.
2.3. Consumption and Risky Assets.
2.4. Investment and the Cost of Capital.
2.5. A Model of Investment with Adjustment Costs.
3. Business Cycle Analysis
3.1. The Business Cycle Facts.
3.2. Real Business Cycle Theory.
3.3. Sticky Prices and Limited Participation
4. Theories of Unemployment
4.1. Indivisible Labour
4.2. Efficiency Wages
4.3. Implicit Contracts
4.4. Insider Outsider Models
4.5. Search and Matching