The course will build on and extend material presented in ECON8022 Macroeconomic Theory. We will cover an equal amount of theory and applications. Students are expected to be comfortable with analytical thinking and have an aptitude for developing computational skills. Topics will include the study of: (i) Non-optimal dynamic economies; and (ii) heterogenous agent models with incomplete markets. These model environments are both of theoretical interest and find applications in modern macroeconomic quantitative analysis and policy.

A student who successfully passes this course is expected to possess the following ability to:

• Read and understand recent developments published in rigorous professional outlets.
• Distil complex dynamic economic problems or facts into a parsimonious and relevant modeling framework. This involves discerning what are important assumptions to make in modeling, when faced with a given issue to address.
• Understand the connection between assumptions made and the conclusions drawn.
• Appreciate the shortcomings of models and to provide alternative improvements.
• Construct logical arguments and provide economic explanations consistent with the  workings of the model used.
• Use analytical and numerical methods in modeling.
• Work independently, in teams, and to develop intellectual leadership.

The Assessment Structure comprises of problems sets and/or assignments and a final examination/project (with possibility of a 24-hour take-home component).

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ECON8022 Macroeconomic Theory and ECON8014 Mathematical Techniques in Economics II

Prior completion of, or concurrent enrolment in, ECON8053 Strategic Thinking: An Introduction to Game Theory and ECON8038 Industrial Organisation is encouraged.

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