- Code:
- ECOM-G313
- Field:
- Macroeconomics
- Target:
- Master’s students
- Organiser:
- University of Helsinki - Economics
- Instructor:
- Timm Prein
- Period:
- Period 2
- Format:
- Lecture
- Method:
- Contact teaching
- Venue:
- Economicum
- Enrollment:
In case of conflicting information consider the Sisu/Course/Moodle pages the primary source of information.
Aalto, Hanken and UH economics students can enroll through their home university’s SISU. Further instructions are available on the How to enroll? page, also for students from other universities.
If you would like to count the credits towards your degree, please check your curriculum or contact your supervisor or student services for guidance.
- To access the Moodle course area, use all the features and participate in the activities (assignments, discussions), you must have successfully registered for the course in Sisu and logged in with your UH user ID.
- For more information on how to activate your UH user ID and register for a Moodle course area, click here.
Content
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.
Learning outcomes
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