Dynamic macroeconomics (Module I: Growth Theory + Module II: Investment and Labour Markets Theory)
A.A. 2023/2024
Obiettivi formativi
The course analyses the main tools and findings of modern Dynamic Macroeconomics. It applies formal economic reasoning and advanced optimization techniques to the study of dynamic growth theory, dynamic investment theory, and dynamic labor economics.
Module 1:
The main purpose of Module 1 is to present a set of theories and models that should be familiar to any professional economist. It is designed to provide students with the principal mathematical techniques needed to properly handle the typical dynamic problems arising in modelling modern economic growth. Through a large set of applications to several semi-endogenous and fully-endogenous growth theories (AK-type, Human Capital-based and R&D-based growth theories), Module 1 is ultimately aimed at discussing and clarifying the concepts and methods' foundations that are traditionally used in economics, in order to come out with a unified and rigorous approach to dynamic economic systems.
Module 2:
The course will study the most up-to-date research in the macroeconomics of investment-theories with adjustment costs and the matching models of the labour market. Mastering the tools of these theories/models will allow students to better understand the links between stocks and flows in the labour-market, the market-effects of important labour market institutions (such as employment protection legislation, minimum wages and unemployment benefits), and to explore the foundations of optimal investment decisions in the presence of frictions and/or market imperfections.
Module 1:
The main purpose of Module 1 is to present a set of theories and models that should be familiar to any professional economist. It is designed to provide students with the principal mathematical techniques needed to properly handle the typical dynamic problems arising in modelling modern economic growth. Through a large set of applications to several semi-endogenous and fully-endogenous growth theories (AK-type, Human Capital-based and R&D-based growth theories), Module 1 is ultimately aimed at discussing and clarifying the concepts and methods' foundations that are traditionally used in economics, in order to come out with a unified and rigorous approach to dynamic economic systems.
Module 2:
The course will study the most up-to-date research in the macroeconomics of investment-theories with adjustment costs and the matching models of the labour market. Mastering the tools of these theories/models will allow students to better understand the links between stocks and flows in the labour-market, the market-effects of important labour market institutions (such as employment protection legislation, minimum wages and unemployment benefits), and to explore the foundations of optimal investment decisions in the presence of frictions and/or market imperfections.
Risultati apprendimento attesi
Dynamic Macroeconomics, Module 1: Growth Theory
At the end of this course students will be able to: (1) Further investigate the fundamental techniques of modern dynamic macroeconomics (such as the analysis of a model's phase diagram and transitional dynamics); (2) Read autonomously the fundamental literature on modern fully- and semi-endogenous growth theory; (3) To interpret economically the results of such literature, and infer its main implications in terms of economic policy prescriptions.
Dynamic Macroeconomics, Module 2: Investment and Labour Market Theories
By attending this course students will be able to: (1) Master the fundamental techniques of modern dynamic macroeconomics; (2) Learn the main determinants of a firm's investment decisions, analyzed from an explicitly dynamic perspective; (3) Fully understand the effects of important labour market institutions, such as employment protection legislation, minimum wages and unemployment benefits.
At the end of this course students will be able to: (1) Further investigate the fundamental techniques of modern dynamic macroeconomics (such as the analysis of a model's phase diagram and transitional dynamics); (2) Read autonomously the fundamental literature on modern fully- and semi-endogenous growth theory; (3) To interpret economically the results of such literature, and infer its main implications in terms of economic policy prescriptions.
Dynamic Macroeconomics, Module 2: Investment and Labour Market Theories
By attending this course students will be able to: (1) Master the fundamental techniques of modern dynamic macroeconomics; (2) Learn the main determinants of a firm's investment decisions, analyzed from an explicitly dynamic perspective; (3) Fully understand the effects of important labour market institutions, such as employment protection legislation, minimum wages and unemployment benefits.
Periodo: Secondo trimestre
Modalità di valutazione: Esame
Giudizio di valutazione: voto verbalizzato in trentesimi
Corso singolo
Questo insegnamento può essere seguito come corso singolo.
Programma e organizzazione didattica
Edizione unica
Responsabile
Periodo
Secondo trimestre
Prerequisiti
Prima di cominciare il corso, lo studente dovrebbe (preferibilmente) già aver superato i corsi di Mathematical Methods for Finance e Advanced Microeconomics and Macroeconomics. La conoscenza dei concetti di funzione in una variabile, funzione in più variabili, derivate, funzioni logaritmiche ed esponenziali, equazioni alle differenze e differenziali, sistemi di equazioni alle differenze e differenziali costituisce un requisito minimo ed indispensabile per poter frequentare questo corso con profitto.
Modalità di verifica dell’apprendimento e criteri di valutazione
L'esame è scritto per tutti gli studenti. L'esame si compone di esercizi e/o domande di teoria. Ogni esercizio/domanda, a sua volta, può consistere di più parti. Alcuni esercizi/domande potrebbero essere a scelta multipla, in questi casi lo studente dovrà scegliere l'opzione che considera essere quella corretta. Una risposta errata comporta in genere zero punti, ma possono anche essere previste penalità (questa penalità eventuale sarà esplicitamente dichiarata nelle istruzioni degli esami e/o nel syllabus del corso).
Module I, Growth Theory
Programma
The basic one-sector growth model with human and physical capital accumulation (WITHOUT inequality constraints)
The basic one-sector growth model with human and physical capital accumulation (WITH inequality constraints)
The two-sector growth model with human and physical capital accumulation (Lucas, 1988)
Research and Development (R&D) and economic growth:
- The semi-endogenous growth model by Jones (1995)
- The fully-endogenous growth model by Romer (1990)
Alternative theories of economic growth
The basic one-sector growth model with human and physical capital accumulation (WITH inequality constraints)
The two-sector growth model with human and physical capital accumulation (Lucas, 1988)
Research and Development (R&D) and economic growth:
- The semi-endogenous growth model by Jones (1995)
- The fully-endogenous growth model by Romer (1990)
Alternative theories of economic growth
Metodi didattici
The course is composed of theoretical, as well as practical classes. The aim of the practical classes is to show students how they can concretely (e.g., in view of the resolution of mathematical exercises) use the theory learnt during the theoretical section of the course.
Materiale di riferimento
Text-books will include:
D. Acemoglu, "Introduction to Modern Economic Growth", 2009, Princeton: Princeton University Press
P. Aghion and P. Howitt, "The Economics of Growth", 2009, Cambridge, Massachusetts: MIT Press
G. Alogoskoufis, "Dynamic Macroeconomics", 2019, Cambridge, Massachusetts: MIT Press
S. Altug, J.S. Chadha, and C. Nolan (Ed. by), "Dynamic Macroeconomic Analysis", 2003, Cambridge, UK: Cambridge University Press
F.-C. Bagliano, and G. Bertola: "Models for Dynamic Macroeconomics", Oxford: Oxford University Press, 2007 (First Edition in paperback)
R.J. Barro and X. Sala-i-Martin, "Economic Growth", Second Edition, 2004, Cambridge, Massachusetts: MIT Press
A. Bucci, K. Prettner, and A. Prskawetz: "Human Capital and Economic Growth: The Impact of Health, Education, and Demographic Change", Basingstoke, UK: Palgrave-MacMillan, 2019
C.I. Jones, and D. Vollrath: "Introduction to Economic Growth", New York: W.W. Norton & Co., 2013 (Third Edition)
Further details (for example, the specific text-book and chapter(s) to be used for any specific topic) will be indicated in the syllabus of the course.
D. Acemoglu, "Introduction to Modern Economic Growth", 2009, Princeton: Princeton University Press
P. Aghion and P. Howitt, "The Economics of Growth", 2009, Cambridge, Massachusetts: MIT Press
G. Alogoskoufis, "Dynamic Macroeconomics", 2019, Cambridge, Massachusetts: MIT Press
S. Altug, J.S. Chadha, and C. Nolan (Ed. by), "Dynamic Macroeconomic Analysis", 2003, Cambridge, UK: Cambridge University Press
F.-C. Bagliano, and G. Bertola: "Models for Dynamic Macroeconomics", Oxford: Oxford University Press, 2007 (First Edition in paperback)
R.J. Barro and X. Sala-i-Martin, "Economic Growth", Second Edition, 2004, Cambridge, Massachusetts: MIT Press
A. Bucci, K. Prettner, and A. Prskawetz: "Human Capital and Economic Growth: The Impact of Health, Education, and Demographic Change", Basingstoke, UK: Palgrave-MacMillan, 2019
C.I. Jones, and D. Vollrath: "Introduction to Economic Growth", New York: W.W. Norton & Co., 2013 (Third Edition)
Further details (for example, the specific text-book and chapter(s) to be used for any specific topic) will be indicated in the syllabus of the course.
Module II, Investment and Labour Markets Theory
Programma
Dynamic Theory of Investment with convex adjustment costs: Analysis and Policy-implications
Dynamic Theory of Unemployment (the 'Matching Theory of the Labour Market'): Analysis and Policy-implications
Dynamic Theory of Unemployment (the 'Matching Theory of the Labour Market'): Analysis and Policy-implications
Metodi didattici
The course is composed of theoretical, as well as practical classes. The aim of the practical classes is to show students how they can concretely (e.g., in view of the resolution of mathematical exercises) use the theory learnt during the theoretical section of the course.
Materiale di riferimento
G. Alogoskoufis, "Dynamic Macroeconomics", 2019, Cambridge, Massachusetts: MIT Press
S. Altug, J.S. Chadha, and C. Nolan (Ed. by), "Dynamic Macroeconomic Analysis", 2003, Cambridge, UK: Cambridge University Press
F.-C. Bagliano and G. Berola: "Models for Dynamic Macroeconomics", Oxford: Oxford University Press, 2007 (First Edition in paperback)
C.A. Pissarides: "Equilibrium Unemployment Theory", Cambridge, Massachusetts: MIT Press, 2000 (Second Edition)
S. Altug, J.S. Chadha, and C. Nolan (Ed. by), "Dynamic Macroeconomic Analysis", 2003, Cambridge, UK: Cambridge University Press
F.-C. Bagliano and G. Berola: "Models for Dynamic Macroeconomics", Oxford: Oxford University Press, 2007 (First Edition in paperback)
C.A. Pissarides: "Equilibrium Unemployment Theory", Cambridge, Massachusetts: MIT Press, 2000 (Second Edition)
Moduli o unità didattiche
Module I, Growth Theory
SECS-P/01 - ECONOMIA POLITICA - CFU: 6
Lezioni: 40 ore
Docente:
Bucci Alberto
Module II, Investment and Labour Markets Theory
SECS-P/01 - ECONOMIA POLITICA - CFU: 6
Lezioni: 40 ore
Docente:
Bucci Alberto
Siti didattici
Docente/i
Ricevimento:
Solo su appuntamento (scrivendo al docente via e-mail istituzionale).