Macroeconomics 2 (5 cr)

Master’s students
University of Helsinki - Economics
Timm Prein
Period 2
Contact teaching
Economicum building

In case of conflicting information consider the Sisu/Courses/Moodle pages the primary source of information.

The course extends the analysis of Macroeconomics 1 to an infinite horizon setting. It provides an introduction to the real business cycle theory. The course first focuses on households’ consumption behavior and dynamic optimization in firms’ investment and labor demand. The above modelling ingredients are put together to make a complete general equilibrium macroeconomic model, the real business cycle (RBC) model. The model will be used to study the propagation of technology shocks. The course further covers extensions of the Solow growth model and an introduction to labor search and matching theory.

  • Completion method: contact teaching
  • Schedule: can be found in Course Page and Sisu
  • Study materials: can be found in Moodle
    • For some courses, it is enough to register in Sisu and you can access directly the Moodle area, please note, however, that it may take up to two hours after registration to enter the Moodle area.
    • Log in with your UH username to be able to use all the features of the course workspace
    • More tips for enrolling in Moodle can be found here

Please register for the course in the UH Sisu with your UH username, further instructions can be found here.

Aalto University Students
  • Code: no equivalent code
  • Target groups: MSc (not suitable for PhD students)
  • Credit points: 5
  • Credit transfer: apply for inclusion in Sisu
Hanken Students
  • Code: 2694
  • Target groups: MSc (not suitable for PhD students)
  • Credit points: 5 cr
  • Credit transfer: apply for substitution in Sisu
University of Helsinki Students
  • Code: ECOM-G313

  • Target groups: MSc (not suitable for rMSc and PhD students)

  • Credit points: 5

FDPE Students Students
  • Not suitable for PhD students

After the course, the student should:

  • Understand the life-cycle motives of consumption and labor supply decisions
  • Understand how uncertainty affects households’ decision.
  • Be familiar with the q-theory of investments
  • Be able to set up a real business cycle model and understand the role of technology in business cycles
  • Be able to extend the basic Solow model, for example, to education and natural resources
  • To understand how human capital and innovation affects economic growth.
  • To understand frictions in the labor market and the sources of unemployment