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ECON4310 - Macroeconomic Theory

Facts about this course:
Credits:10
Level:Advanced course at master's level
Teaching semester:Every autumn semester
Examination semester:Every autumn semester
Language of instruction:English
Administrated by:Department of Economics
Detailed course information - Current and previous semesters:

Course content

The focus in this course is on how economic aggregates evolve over time and on how this evolution is shaped by economic agents who are taking account of how their present decisions will affect their own future. Among the topics are:

• Saving and investment decisions.
• Capital accumulation and the determination of real interest rates.
• Capital asset pricing when returns are risky
• Long-run consequences of fiscal policy and government debt
• Public pension systems
• The nature and causes of business cycles
• Determinants of unemployment

The course covers a range of models that are among the most widely used tools in macroeconomic thinking. It is meant as an introduction to macro theory at the masters’ level and provides a useful background for the other macro courses.

Learning outcomes

Knowledge outcomes:
The students should be familiar with economy-wide models of the following types:
• The basic neoclassical growth model (Solow-type)
• Overlapping generation models (Diamond-type)
• Dynastic models (infinite horizon models Ramsey-type)
• Consumption capital-asset pricing models
• Real business cycle models
• Traditional Keynesian models of fluctuations

The students should have a broad understanding of modern theories of saving and investment behavior, of government deficits and debt, of unemployment and of the debate about the causes of business-cycles.

Skills:
After the course students should be able to:
• Solve simple dynamic optimization problems both with and without uncertainty.
• use intertemporal equilibrium models to discuss qualitatively the effects over time of exogenous shocks to the economy.
• discuss the long run effects of fiscal policies as well as their effects on the business cycle

Admission

Students who are admitted to study programmes at UiO must each semester register which courses and exams they wish to sign up for in StudentWeb.

Students enrolled in other Master's Degree Programmes can, on application, be admitted to the course if this is cleared by their own study programme.

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

Bachelor's degree in Economics, or equivalent.

Recommended prior knowledge

Good background i microeconomics and mathematics. It is recommended to take the course either in parallel with or after ECON4230 - Microeconomic Theory, ECON4215 - Microeconomics and ECON4120 - Mathematics 2: Calculus and linear algebra

Overlap

10 credits against SØK/ECON411 Macroeconomics advanced.

Teaching

Lectures: 4 hours per week in the first half of the semester, 2 hours per week in the second half.

Seminars: 2 hours per week through the second half of the semester.

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

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".

Other information

The course name has been changed from "Consumption, investment and pensions" to "Intertemporal macroeconomics" spring 2006.

Contact us

Department of Economics

Visiting address: 
Moltke Moes vei 31, Eilert Sundts house, 12th floor

Visiting hours: 
10.15-11.00 and 12.15-15.00

Postal address: 
P.O box 1095 Blindern
0317 Oslo

Phone: +47 22855127
Fax: +47 22855035
E-mail: 
Web: http://www.sv.uio.no/econ/english/