Dynamic macroeconomics (Module I: Growth Theory + Module II: Investment and Labour Markets Theory)

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.

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.