York University
Department of Economics
AP/ECON 4020 3.0A
Advanced Microeconomic Analysis
Summer 2013 (S1)
Course Outline
COURSE INSTRUCTOR:
Zafar Kayani
EMAIL:
zkayani@yorku.ca
OFFICE HOURS:
OFFICE LOCATION:
Tuesdays/Thursdays 4:45-5:45PM
ATKINSON-736
LECTURE TIMES:
LECTURE LOCATION:
TR 6:00 – 9:00pm
ACE 002
COURSE WEBSITE INFORMATION: Course is run on Moodle @yorku. You log in with
York ID @ https://moodle11.yorku.ca/moodle/my/
Course Description
A study of selected topics in the recent macroeconomic research: economic growth and
development, output and inflation models, business cycles, inter-temporal models, short-run
fluctuations, and alternative approaches to monetary and fiscal policy design and
implementation.
Prerequisites
AP/ECON 2400 3.00 and AP/ECON 2450 3.00 or equivalents. Recommended prior completion:
AP/ECON 2300, AP/ECON 2350 3.00.
Required Text Book
PH: Sorensen, P. and Whitta-Jacobsen, H. (2010). Introducing Advanced Macroeconomics:
Growth and Business Cycles. Second Edition, McGraw-Hill.
ECON 4020 Advanced Macroeconomics Primis eBook ISBN 0390722952($34.08US). Please
see the attached directions to assist you in purchasing this eBook online. This text book may be
listed under York University course Econ-4020. Go to the following link:
https://create.mcgraw-hill.com/shop/#/catalog/details/?isbn=9780390722959
New edition (2010) is available @ the price of USD78.53 by going to the link:
https://create.mcgraw-hill.com/shop/#/catalog/details/?isbn=9781121534032
Recommended Reading Material
DR: David Romer (2005). Advanced Macroeconomics. 3rd edition. McGraw-Hill
CJ: Charles I. Jones (2002). Introduction to Economics Growth. Norton
Course Evaluation
MIDTERM EXAM
50%
FINAL EXAM
50%(May 23, 2013, Chapters HP: 2, 3, 5 and 6)
50%(Comprehensive: 30% midterm and 70% post midterm material)
Max. Value of (Option1: Midterm 50% + Final 50% OR Option2: Final 100%)
Moodle
Is a learning tool that is used for this course. The class material: lecture notes, assignments,
grades and course related announcements will be posted on the Moodle. It is recommended
that you frequently log on to the Moodle to view the updated posts.
ACADEMIC HONESTY
The Faculty of Liberal Arts and Professional Studies considers breaches of the Senate Policy
on Academic Honesty to be serious matters. To quote the Senate Policy on Academic Honesty:
The Policy on Academic Honesty is an affirmation and clarification for members of the
University of the general obligation to maintain the highest standards of academic honesty. As a
clear sense of academic honesty and responsibility is fundamental to good scholarship, the
policy recognizes the general responsibility of all faculty members to foster acceptable
standards of academic conduct and of the student to be mindful of and abide by such
standards.
Suspected breaches of academic honesty will be investigated and charges shall be laid if
reasonable and probable grounds exist.
Grading Scheme and Feedback (Senate)Policy
http://www.yorku.ca/secretariat/policies/document.php?document=86
IMPORTANT COURSE INFORMATION
The Senate Committee on Curriculum & Academic Standards (CCAS) provides a Student
Information Sheet and students should review the York Academic Honesty policy for
themselves at:
York's Academic Honesty Policy & Procedures/Academic Integrity Web site
Access/Disability
Religious Observance Accommodation
Student Code of Conduct
Additional information
Academic Accommodation for Students with Disabilities
Alternate Exam and Test Scheduling
Grading Scheme and Feedback Policy
The Senate Grading Scheme and Feedback Policy stipulates that (a) the grading scheme (i.e.
kinds and weights of assignments, essays, exams, etc.) be announced, and be available in
writing, within the first two weeks of class, and that, (b) under normal circumstances, graded
feedback worth at least 15% of the final grade for Fall, Winter or Summer Term, and 30% for
‘full year’ courses offered in the
Fall/Winter Term be received by students in all courses prior to the final withdrawal date from a
course without receiving a grade.
"20% Rule"
No examinations or tests collectively worth more than 20% of the final grade in a course will be
given during the final 14 calendar days of classes in a term. The exceptions to the rule are
classes which regularly meet Friday evenings or on Saturday and/or Sunday at any time, and
courses offered in the compressed summer terms. Final course grades may be adjusted to
conform to Program or Faculty grades distribution profiles.
COURSE OUTLINE AND READINGS
WEEK 1:
Long-run Economic Growth:
Introducing the Stylized Facts of Economic Growth:
PH: Ch. 2, CJ: Ch.1.
Pritchett, L. ``Divergence, Big Time'', Journal of Economic Perspectives 1997.
Economist Mar. 11, 2004 ``More or less equal?''
Capital Accumulation and Growth: The Basic Solow Model
PH: Ch. 3, CJ: Ch. 2,
WEEK 2:
Technological Progress and Growth: The General Solow Model
PH: Ch. 5, CJ: Ch. 2
WEEK 3:
Education and Growth: The Solow Model with Human Capital
PH: Ch.6, CJ: Ch. 3 and 9
Sachs and Warner “The Curse of Natural Resources” European Economic Review 2001
Thorvaldor Gylfason “Natural Resources and Economic Growth: What is the connection?”
Olsen, M. ``Big Bills on the Side-Walk: Why Some Nations are Rich, and Some are So Poor'',
Journal of Economic Perspectives, 1996.
WEEK 4: Midterm exam
WEEK 5:
Productive Externalities and Endogenous Growth
HP: Ch. 8, CJ: Ch. 8
Paul M. Romer The Origins of Endogenous Growth JEP, Vol. 8, No. 1. (Winter, 1994),
pp. 3-22.
WEEK 6:
R&D-Based Endogenous Growth
HP: Ch. 8, CJ: Ch. 8
WEEK 7:
The Short-run Economic Fluctuations
HP: Ch. 13
Lawrence J. Christiano and Terry J. Fitzgerald “The business cycle: It’s still a puzzle”
WEEK 8:
HP: Ch. 18, DR: Ch. 4
Real Business cycle
C.I. Plosser “Understanding Real Business Cycles” JEP v3 (1989): 51-77
Edward Prescott and F. Kydland, "Business Cycles: Real Facts and a Monetary Myth" 1990,
FRB Minneapolis Quarterly Review
N.G. Mankiw “ Real Business Cycles: A new Keynesian Perspective” JEP 3:3 (1989) 79-90.
S. Basu and A.M. Taylor “Business Cycles in International Historical Perspective” JEP 13:2
(1999) 45-68.
D. Romer “Short-run Fluctuations” working paper 1999 (revised 2005).
WEEK 9:
Out-put and inflation trade-off and expectations.
HP: Ch.18, 21
*Rodney Maddock; Michael Carter “A Child's Guide to Rational Expectations” JEL, Vol. 20,
No.1. (Mar., 1982), pp. 39-51
*R.E. Lucas, “Some International Evidence on Output-Inflation Tradeoffs” AER V.63 (1993):
326-334 reprinted in R.E. Lucas Studies in Business-cycle Theory Cambridge MA: MIT
Press, 1981.
WEEK 10 & 11:
HP: Ch. 20 and 21. DR Ch. 10
Stabilization Policy and Rational Expectations.
WEEK 12:
HP: Ch. 20
Monetary and Fiscal Policy Design and Implementation
http://www.bankofcanada.ca/wp-content/uploads/2010/09/devereux_summer10.pdf
Next Steps for Canadian Monetary Policy
http://www.bankofcanada.ca/wp-content/uploads/2010/06/amano.pdf