Guía docente de Macroeconomía Dinámica (M56/56/1/42)

• Analysis of different models used in dynamic macroeconomics.
• Applications of the models to different macroeconomic topics.

• Basic knowledge of statistics and calculus.
• It is highly recommended to have attended Economic Analysis Techniques, Microeconomics, Macroeconomics and Econometrics, and being enrolled in Research Methods in Macroeconomics and Research Methods in Microeconomics.

• Identify relevant problems analysed in Dynamic Macroeconomics.
• Distinguish the concepts and basic models.
• Collect evidence (bibliography, data, models) to face the analysis.
• Choose the model to analyse different economic problems.

• Basic tools for dynamic economics in continuous time
  • Integral calculus
  • Differential equations
  • Optimal control theory
• Dynamics in the aggregate demand and supply model
  • Overview of the aggregate demand and supply model
  • Dynamic systems
  • Inflation and monetary policy
• The empirics of economic growth
  • The Solow model
  • Growth accounting
  • The MRW model
• The orthodox investment theory
  • Investment under certainty
  • Investment under uncertainty
• The new view of the investment: a real option approach
  • Introduction to stochastic calculus: Brownian motion and Ito’s lemma
  • Dynamic optimization under uncertainty: Introduction to dynamic programming (optimal stopping problems)
  • Investment opportunities and investment timing
  • Entry and exit decisions
• Optimal stopping problems: applications

• Solutions of theoretical problems.
• Replication of the MRW's results using STATA.
• Numerical solutions of problems.

• Ben Heijdra. Foundations of Modern Macroeconomics. Oxford University Press.

• Chiang, A. and Wainwright, K. Fundamental Methods of Mathematical Economics.

• Dixit, A. and Pindyck, R. S. Investment under Uncertainty. Princeton University Press.

• Mankiw, N.G, Romer, D. and Weil, D.N. (1992). Contribution to the empirics of economics growth. The Quarterly Journal of Economics 107, 407–437.

• Romer, D.  Advanced Macroeconomics. McGraw-Hill.

• Bagliano F.C. and Bertola, G. Models for dynamic macroeconomics. Oxford University Press.
• Dixit, A.  The Art of Smooth Pasting. Princeton University Press.
• McDonald, R. and D. Siegel. (1986). The Value of Waiting to Invest. The Quarterly Journal of Economics 101, 707-727.
• S. J. Turnosvky. Methods of Macroeconomic Dynamics. MIT press.

• Penn World Table: https://www.rug.nl/ggdc/productivity/pwt/
• http://www.realoptions.org/

Article 17 of the UGR Assessment Policy and Regulations establishes that the ordinary assessment session (convocatoria ordinaria) will preferably be based on the continuous assessment of students, except for those who have been granted the right to a single final assessment (evaluación única final), which is an assessment method that only takes a final exam into account.

Class attendance is mandatory in at least 70% of the sessions, requiring an active participation. Furthermore, it is also necessary to overcome the requirement of a written exam to pass the course. Covered those two conditions, the final mark is obtained from:

• Written examination: 60%.
• Solution of problems (problem sets) to be uploaded in Prado: 40%.

• Article 19 of the UGR Assessment Policy and Regulations establishes that students who have not passed a course in the ordinary assessment session (convocatoria ordinaria) will have access to an extraordinary assessment session (convocatoria extraordinaria). All students may take part in this extraordinary assessment session, regardless of whether or not they have followed continuous assessment activities. In this way, students who have not carried out continuous assessment activities will have the opportunity to obtain 100% of their mark by means of an exam and/or assignment.
• In this case, the assessment will be:
• A written examination: 100%.

• Article 8 of the UGR Assessment Policy and Regulations establishes that students who are unable to follow continuous assessment methods due to justifiable reasons shall have recourse to a single final assessment (evaluación única final), which is an assessment method that only takes a final exam into account.
• In order to opt for a single final assessment (evaluación única final), students must send a request, using the corresponding online procedure, to the coordinator of the master’s programme, in the first two weeks of the course or in the two weeks following their enrolment (if the enrolment has taken place after the classes have already begun). The coordinator will communicate this information to the relevant teaching staff members, citing and verifying the reasons why the student is unable to follow the continuous assessment system.
• In this case, the assessment will be:
• A written examination: 100%.

INCLUSION and DIVERSITY. In the case of students with disabilities or other specific educational support needs (NEAE), the tutoring system will be adapted to these needs, following the recommendations of the inclusion area at the University of Granada. Departments and centers will establish appropriate measures to ensure that tutorials take place in accessible locations. Additionally, at the request of faculty, support can be requested from the competent unit at UGR for special methodological adaptations.