Graduate Institute of International Economics, National Chung Cheng
University, Fall 2006
Macroeconomic Theory I
Instructor：葉國俊（YEH, Kuo-chun）
Office：R326, College of Business Administration, Ext.： 34118
Classroom and time: 336, Wednesday 13:15-16:00
E-Mail：ecdkcy@ccu.edu.tw
I.
Goals
The main goal of this course is to introduce you the current development of
New-Keynesian and New-classical theories, including short-run fluctuations and
long-run economic growth. After finishing the course work, students will have
sufficient knowledge and skills to do more advanced studies (e.g., Macroeconomic
Theory II in the next semester).
II. Required Textbook and Readings
[1] Romer, D. (2005), Advanced Macroeconomics, 3rd ed., McGraw Hill.
[2] Barro, R. (1998) Determinants of Economic Growth: A Cross-country
Empirical Study, MIT Press.
[3] Parente, S.L and E. Prescott (2000), Barriers to Riches, MIT Press.
Some mathematical skills (e.g., optimal control and dynamic programming) are
required. You can take a course of mathematical economics or read some parts of the
textbooks：
[4] Chiang, A.C. (1992), Elements of Dynamic Optimization, McGraw-Hill.
[5] Chow, G. (1997), Dynamic Economics: Optimization by the Lagrange Method,
Oxford.
[6] Adda, J. and R. Cooper (2003), Dynamic Economics, MIT Press.
[7] Dixit, A.K. (1990), Optimization in Economic Theory, Oxford. Chs.10, 11.
[8] Leonard, D. and N. van Long (1992), Optimal Control Theory and Static
Optimization in Economics, Cambridge.
[9] 蔡攀龍著 (1996), 經濟學數學方法導論：動態分析。台北：茂昌
III. Grading
1. Mid-term exam
2. Final exam
50%
50%
1
3. Samples before the exams
V.
optional
Studying topics
1.
Introduction. Readings: Mankiw, G (2006), The Macroeconomists as
Scientist and Engineer, NBER working paper 12349 (www.nber.org)
2.
Useful mathematical tools: Law of dynamic motion and optimal controls.
Readings: [4], [5], [6], [7], [8], [9]
3.
Micro-foundation: From Solow model to Ramsey model and Diamond
overlapping generation model. Readings: [1] chapters 1-2
4.
New growth theory.
5.
Empirics of economic growth.
6.
Barriers to riches: Introduction to theory of relative income levels.
Readings: [3]
7.
Real business cycle theory.
8.
New Keynesian model with real rigidity. Lucas’s imperfect information
model and its implications. Readings: [1] chapters 5-6
Readings: [1] chapter 3
Readings: [2]
Readings: [1] chapter 4
Week 9: Mid-term exam
Week 18: Final exam
2