This course is no longer available, see the current course list.
ECON3410 - Introductory dynamic macroeconomics
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Course content
The course gives and elementary but concise introduction to dynamic models and dynamic analysis in macroeconomics. The method of dynamic analysis is applied to wage-and price formation and inflation, and to fiscal policy and monetary policy analysis in an open economy context. The course also contains an introduction to the real business cycle model. At the beginning of the course we explain why a dynamic approach is required to understand and predict how an economy realistically reacts to shocks or a policy change. The course gives a step-by-step introduction to the key theoretical concepts relating to statics and dynamic analysis and to the corresponding model types. The supply side of the open economy, is one main area of application of dynamic analysis, and the course shows how competing models of wage and price setting can be formulated within one and the same dynamic framework, and how the different models lead to different predictions about how the economy react to shocks and policy changes. In the analysis we are also able to integrate the market for foreign exchange and the choice of monetary policy regime (instruments and targets) and to show that the dynamic response of the macro economy is regime-dependent. Since the emphasis is on dynamics analysis for the ‘policy horizon’ the models are formulated in discrete (calendar) time.
Learning outcomes
Knowledge outcomes:
In the course extends the conceptual macroeconomic framework from static models (such as the Keynesian income-expenditure models) to dynamic models. You learn how to define and recognize static and dynamic models. You learn how the static models you know from before can be re-interpreted within a dynamic framework. You also learn under which assumptions a a static analysis is a relevant approximation to real life behavior, and when an explicit dynamic analysis is required. You learn the distinction between short-run effects of policy changes, the dynamic effects, and the long-run effects, and how to make these concepts precise. You learn how to solve simple dynamic models with the aid of algebra, and how to solve more complex model qualitatively.
Skills:
You will be able to formulate dynamic models in discrete time, and to use start using them in substantive application, for example in connection with the master thesis. Having formulated the model you can derive a full set of dynamic multipliers for simple models, and the short-run and long-run multipliers for more complex models. You can also use simple dynamic models to understand the principles of rational economic forecasting. You will be able to rationalize why multipliers depend on theoretical choices or assumptions, as well as on policy regimes. Building on these skills you have a good background for further studies in macroeconomic dynamics, for example for a course in optimization based macroeconomic theory, in open economy macroeconomics, or in economic growth theory; or in a course in time series econometrics.
Admission
Students at UiO must apply for courses in StudentWeb.
International applicants, if you are not already enrolled as a student at UiO, please see our information about admission requirements and procedures for international applicants.
The examination in this course is not available for external candidates. Only students admitted to the course may sit for the examination.
Prerequisites
Formal prerequisites
ECON2310 - Macroeconomic analysis
Overlap
10 credits against ECON4410. 10 credits against SØK2MAK Makroøkonomi.
Teaching
Lectures: 2 hours per week throughout the semester.
Seminars: 2 hours per week through parts of the semester, (teacher and student lead), with exercises and student presentations.
There might occur weeks exempt from teaching
Exam information
A 3-hour written school exam.
Exam resources
No special exam resources are allowed.
Language of examination
The problem set will be given in English. Answers can be given in Norwegian, Swedish, Danish or in English. See § 6.4 i Forskrift om studier og eksamener ved Universitetet i Oslo .
Assessment and grading
Course grades are awarded on a descending scale using alphabetic grades from A to E for passes and F for fail. Read more about the grading system .
An external auditor regularly evaluates the academic quality of the course, including the form of exam used on the course.
Explanations and appeals
Explanations and complaints over grades.
Students can request an explanation of their grades, and can also appeal against their grades or make a complaint about formal examination errors. Read more about explanations and appeals
Possibility of make-up exams and re-takes
The Department of Economics has passed following resolution for ECON-courses: It will no longer be possible for candidates to register for an exam in a lower level course after having passed exams in intermediate and advanced level courses in the same subject area (also where there are no pre-requisites that apply to the intermediate course). Further information can be found here.
Students who might wish to retake the exam later, are not guaranteed that the course is ever repeated with a similar reading list, nor that the exam arrangement will be the same.
You can usually resit an exam, but the conditions depend on whether you had a valid reason for absence from the regular exam. Read more about resitting an exam .
Withdrawing from exams and limits on re-takes
A student can sit for this exam up to 3 times. If a student wishes to withdraw from the exam, s/he must do this in StudentWeb at least two weeks prior to the first day of the exam. Failure to do so will be counted as one of the three opportunities to sit for the exam.
Exam options for students with special needs
Students may apply for access to alternative exam resources or exam forms on the basis of chronic illness and/or special needs that create a marked disadvantage to other students in the exam situation. Mothers who are breastfeeding may apply for extra time to complete the exam.
Evaluation of this course
Feedback from our students is essential to us in our efforts to ensure and further improve the high quality of our programmes and courses. As a student at the University of Oslo you will therefore be asked to participate in various types of evaluation of our courses, facilities and services. All courses are subject to continuous evaluation. At regular intervals we also ask students on a particular course to participate in a more comprehensive, in-depth evaluation of this course, a so called "periodic evaluation".
A periodic evaluation of ECON3410 was conducted during autum term 2008. A Norwegian version of the evaluation report that was compiled on the basis of the information retrieved from the evaluation, can be found here
Other information
As of Spring 2006 ECON3410/ECON4410 changed its name from International macroeconomics and finance into Introductory dynamic macroeconomics.
ECON3410 - Introductory dynamic macroeconomics is the course number for registration for lecture, seminar and exam for the bachelor students. ECON4410 is the course number for the master students.
Contact us
Department of Economics
Visiting address:
Moltke Moes vei 31, Eilert Sundt Building, 12th floor
Visiting hours:
Monday - Friday: 10:15 - 11.00 and 12:15 - 15:00
Postal address:
P.O.Box 1084 Blindern
N - 0317 Oslo
Fax: +47 22 85 50 35
E-mail: post@econ.uio.no
Web: http://www.sv.uio.no/econ/english/