OVERVIEW

Why are some countries rich and others poor? What types of countries grow more rapidly? Why do certain societies fail to improve their technologies? This course will introduce students to these major questions and to the theoretical, mathematical, and conceptual tools necessary for answering them. The presentation of the theories will be supplemented with examples of relevant empirical works and policy implications.

AIMS AND CONTENT

LEARNING OUTCOMES

Students will receive a graduate-level introduction to the economic theories, models, and empirical evidence of modern macroeconomics, with particular reference to the economics of growth. By the end of the course, students will have acquired the knowledge necessary to summarize, reproduce, and manipulate various macroeconomic models, to derive and analyze the associated policy recommendations, and to engage with existing empirical evidence. With this knowledge, students will be able to use theoretical and applied macroeconomic techniques to understand the proximate causes of growth, the role of physical and human capital accumulation and technological progress, and the influence of public policies and changes in economic fundamentals. Furthermore, students will acquire the basic conceptual and mathematical tools necessary to read and comprehend the contemporary literature in theoretical and applied macroeconomics.

AIMS AND LEARNING OUTCOMES

At the end of the course, students will be able to:

1. Knowledge and understanding

• describe the main facts about long-run economic growth and cross-country income differences;
• explain the structure, assumptions and economic mechanisms of the main models of economic growth, including the Solow-Swan model, the Ramsey model, overlapping generations models, and endogenous growth models;
• understand the role of physical capital, human capital, population growth, technological progress and institutions in shaping long-run economic outcomes;
• identify the main policy implications of alternative macroeconomic growth models;
• understand the conceptual and mathematical foundations of modern macroeconomic analysis, including dynamic optimization and equilibrium analysis.

2. Applying knowledge and understanding

• reproduce and manipulate core macroeconomic models using appropriate mathematical tools;
• derive equilibrium conditions, steady states and comparative statics in standard growth models;
• analyse the effects of changes in economic fundamentals and public policies on growth, welfare and income differences;
• solve theoretical and quantitative exercises related to the models covered in the course;
• interpret empirical evidence on growth and development in light of the theoretical frameworks studied.

3. Making judgements

• critically assess the assumptions, strengths and limitations of different macroeconomic models;
• compare alternative explanations of economic growth and cross-country income differences;
• evaluate the consistency between model predictions, empirical evidence and policy recommendations;
• develop independent reasoning on macroeconomic policy issues using theoretical and empirical arguments.

4. Communication skills

• present macroeconomic arguments clearly using equations, graphs and verbal reasoning;
• explain the intuition behind formal models and their policy implications;
• use the technical language of modern macroeconomics appropriately;
• discuss theoretical and empirical contributions in a structured and coherent way.

5. Learning skills

• read and understand graduate-level macroeconomic material, including textbook chapters, lecture notes and selected research papers;
• develop the ability to study formal macroeconomic models independently;
• acquire the analytical foundations needed for more advanced courses or research-oriented work in macroeconomics, growth and applied economic analysis.

PREREQUISITES

The technical prerequisite is the knowledge of the mathematical tools presented in an undergraduate course in Mathematics (i.e. multiple-variable functions, derivatives, static optimization, integrals, matrix algebra) and Probability (i.e. expected values, variances, independent and identically distributed random variables). Students may also find it useful to be familiar with any undergraduate-level book in macroeconomics (e.g. Bernheim e Whinston's “Microeconomics” by McGraw-Hill, Mankiw’s “Macroeconomics” by Worth, or Blanchard’s “Macroeconomics” by Pearson).

TEACHING METHODS

The course consists mainly of lectures, classroom discussions and practical sessions based on tutorials and exercises.

Lectures introduce the theoretical models, mathematical tools, empirical evidence and policy implications. Practical sessions and tutorials are used to consolidate students’ ability to solve models, interpret equilibrium conditions and apply the analytical tools developed during the course.

Students are expected to study the lecture material regularly and to work on exercises and tutorials throughout the semester. Active participation is strongly recommended, especially because the course relies on formal models and cumulative mathematical reasoning.

For students with disabilities, specific learning disorders, or special education needs

Students with disabilities, specific learning disorders (SLD) or special educational needs (SEN) are reminded that, in order to request exam accommodations, they must first upload their certification to the University website at servizionline.unige.it, in the “Students” section. The documentation will be checked by the University Office for Inclusion Services for Students with Disabilities and SLD. At the beginning of the course, students are advised to contact the lecturer to agree on examination arrangements that, while respecting the learning objectives of the course, take individual learning needs into account. To request compensatory tools or dispensatory measures, students with disabilities or SLD must complete the dedicated webform available at https://unige.it/disabilita-dsa at least 7 working days before the exam.

Students with SEN may instead submit their request by e-mail to the lecturer, copying the Department Inclusion Officer, Prof. Elena Lagomarsino (inclusione.economia@unige.it), and the Inclusion Office (inclusione.studenti@info.unige.it). Requests will be assessed by the lecturer and may be approved or rejected.

SYLLABUS/CONTENT

We will attempt to cover the following topics:
1. Growth Facts – we will start with a quick look at some basic facts about economic growth and evidences on cross-country income differences
2. The Solow-Swan Model – we will develop a framework to think about causes and mechanics of the process of economic growth and cross-country income differences
3. Neoclassical Growth Model – we will analyse the Ramsey model, while introducing the mathematical and conceptual foundations of modern macroeconomic analysis
4. Overlapping Generations Models – we will depart from the representative household assumption and introduce a model where different agents arrive over time
5. Endogenous Growth Models – we will start considering models of endogenous growth, like the AK model and Romer’s model of expanding variety
6. Stochastic growth models - after an introduction to dynamic programming, we will cover the baseline models of stochastic growth, like the Brock-Mirman model and the Real Business Cycle model

The exact sequence of topics may be adjusted during the course. Updated information will be made available through AulaWeb.

RECOMMENDED READING/BIBLIOGRAPHY

There is no single textbook for the course. The main references are:

• David Romer, Advanced Macroeconomics, McGraw Hill.
• Robert J. Barro and Xavier Sala-i-Martin, Economic Growth, MIT Press.
• Daron Acemoglu, Introduction to Modern Economic Growth, Princeton University Press.
• Marina Azzimonti, Per Krusell, Alisdair McKay and Toshihiko Mukoyama, Macroeconomics.

Useful but more advanced references include:

• Nancy L. Stokey, Robert E. Lucas and Edward C. Prescott, Recursive Methods in Economic Dynamics, Harvard University Press.
• Lars Ljungqvist and Thomas J. Sargent, Recursive Macroeconomic Theory, MIT Press.

Additional references may be indicated during the course. Lecture slides, tutorials and, where appropriate, solutions or additional material will be made available on AulaWeb.

TEACHERS AND EXAM BOARD

LESSONS

LESSONS START

Lectures will be given in the second semester

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

The exam consists of a single written examination on the full contents covered in the most recent version of the course. The written exam lasts 90 minutes and consists of two questions, each worth 50% of the final mark. Questions may include open-ended theoretical questions, analytical derivations and/or exercises. Students must register for the exam according to the official procedure. Registering for a new exam session implies rejection of any previous mark obtained in the same course.

There are no mid-term exams. The exam dates will be communicated in advance through the official channels. No additional exam dates will be offered outside the scheduled sessions. 

In case of suspected irregularities during the exam, students may be required to take an additional oral examination.

ASSESSMENT METHODS

The written examination is designed to assess whether students have achieved the expected learning outcomes.

Theoretical questions assess students’ knowledge and understanding of the main macroeconomic models, their assumptions, mechanisms, implications and limitations.

Analytical derivations and exercises assess students’ ability to reproduce and manipulate formal models, derive equilibrium conditions and steady states, perform comparative statics and interpret the economic meaning of mathematical results.

The assessment will take into account the correctness and completeness of the answers, the ability to use the appropriate analytical tools, the clarity of the economic reasoning, the correct use of macroeconomic terminology, and the ability to connect model predictions with empirical evidence and policy implications.

For students taking the exam in the first available exam session, additional points may be awarded for homework submitted during the course, according to the rules and deadlines communicated on AulaWeb. These additional points are valid only for the first available exam session and expire at the end of that session.

FURTHER INFORMATION

Detailed slides will be made available on AulaWeb before each class. Tutorials, exercises and additional information on the organization of the course will also be published on AulaWeb.

The course outline may be subject to change. Students are therefore expected to consult AulaWeb regularly for updated information on lectures, tutorials, materials, deadlines and exam arrangements.

The acceptance of incoming mobility students is subject to the lecturer’s approval; therefore, the lecturer must be contacted in advance.