York University
Faculty of Liberal Arts & Professional Studies
Department of Economics
SUMMER 2014
S1
Course # and Title:
AP/ECON 4020 3.0A - Advanced Macroeconomic Analysis
Course Webpage:
NOTE: Course is run on Moodle @yorku. You log in with York ID @
https://moodle11.yorku.ca/moodle/my/
Course Instructor/Contact:
Name:
Office:
Phone:
Office Hours:
Email:
Zafar Kayani
Atkinson – 736
416-736-2100 Ext. 33501
TR 4:45-5:45PM
zkayani@yorku.ca
Lecture Time and Location:
Lecture: TR 6:00 – 9:00pm
Lecture Hall: VH-3009
TA hours: TBA
Prerequisite / Co-requisite:
AP/ECON 2400 3.00 and AP/ECON 2450 3.00 or equivalents. Recommended prior
completion: AP/ECON 2300, AP/ECON 2350 3.00.
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, shortrun fluctuations, and alternative approaches to monetary and fiscal policy design and
implementation.
Weighting of Course & Evaluation:
MIDTERM EXAM: (May 22, 2014, Chapters HP: 2, 3, 5 and 6)
50%
FINAL EXAM: (comprehensive: 20% midterm and 80% post midterm material) 50%
Maximum 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.
Grading
The grading scheme for the course conforms to the 9-point grading system used in
undergraduate programs at York (e.g., A+ = 9, A = 8, B+ = 7, C+ = 5, etc.). Assignments
and tests will bear either a letter grade designation or a corresponding number grade (e.g.
A+ = 90 to 100, A = 80 to 90, B+ = 75 to 79, etc.)
Course Text / Readings:
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
Exams and Exam Policy: There is no make-up for the missing midterm exam. If you
miss midterm exam then I will transfer the weight of the midterm exam to the final exam.
You must notify me within forty-eight hours after the midterm exam or before the
midterm exam with your valid and well documented excuse by in person, by email or in
writing. Failing to report missing midterm exam will cost you zero in the midterm exam.
Students who are absent from the final examination and requesting for deferred standing
must follow the Guidelines for Deferred Standing of the Department of Economics.
http://dept.econ.yorku.ca/undergraduate/Deferred_Standing1.pdf.
The request for deferred standing will not be approved if the conditions listed on the
Guidelines are not satisfied.
Organization of the Course (Topics):
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
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.
Midterm exam – May 22, 2014 (in class – two hours. Chapters: 2, 4, 5, and 6)
WEEK 3:
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.
R&D-Based Endogenous Growth
HP: Ch. 8, CJ: Ch. 8
WEEK 4:
The Short-run Economic Fluctuations
HP: Ch. 13
Lawrence J. Christiano and Terry J. Fitzgerald “The business cycle: It’s still a puzzle”
WEEK 5:
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) 7990.
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 6:
Stabilization Policy and Rational Expectations.
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
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"
Important Course Information for Students:
All students are expected to familiarize themselves with the following information,
available on the Senate Committee on Curriculum & Academic Standards webpage;
http://www.yorku.ca/secretariat/policies/index-policies.html/
• York’s Academic Honesty Policy and Procedures/Academic Integrity Website
• Ethics Review Process for research involving human participants
• Course requirement accommodation for students with disabilities, including
physical, medical, systemic, learning and psychiatric disabilities
• Student Conduct Standards
• Religious Observance Accommodation
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 that includes:
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
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.