UCL Department of Economics


ECON0057 - Advanced Macroeconomic Theory


The course will make you familiar with key concepts in modern quantitative macroeconomics and give students a thorough understanding of up-to-date research in a few selected topics. Particular attention will be paid to using economic theory, specifically equilibrium models with heterogeneous agents, to interpret data. The course will be relevant to students wishing to continue to study economics at a postgraduate level, as well as those interested in policy research involving quantitative economic modeling.

Course outline:

1. Tools for Studying Dynamic Economies
Topics include: Dynamic Programming; Numerical Dynamic Programming; and Applications to Neoclassical Growth and Search, Matching and Unemployment

2. Self Insurance and Incomplete Markets
Topics include: Self Insurance (partial equilibrium), Bewley Models

3. Inequality in the Macroeconomy
Topics include: Measuring risk, endogenously incomplete markets

4. Equilibrium Unemployment Theory
Topics include: Theory and applications to European unemployment and business cycle dynamics

Taught by:Alan Olivi
Assessment:2 hours of lectures per week and weekly problem classes with written assignments.  Approximately half of the problem sets will require solving economic models on a computer. The course will be examined by a 2-hour unseen written exam in Term 3.
Suitable for:Graduate students
Prerequisites:ECON0066: Macroeconomics AND the ability to programme with Matlab or an equivalent programming language
Moodle page:ECON0057