ECTS - Macroeconomics
Macroeconomics (ECON505) Course Detail
| Course Name | Course Code | Season | Lecture Hours | Application Hours | Lab Hours | Credit | ECTS |
|---|---|---|---|---|---|---|---|
| Macroeconomics | ECON505 | General Elective | 3 | 0 | 0 | 3 | 5 |
| Pre-requisite Course(s) |
|---|
| N/A |
| Course Language | English |
|---|---|
| Course Type | Elective Courses |
| Course Level | Ph.D. |
| Mode of Delivery | Face To Face |
| Learning and Teaching Strategies | Lecture, Discussion, Question and Answer, Problem Solving. |
| Course Lecturer(s) |
|
| Course Objectives | The aim of this course is to comprehensively examine macroeconomic theory and analytical methods at the graduate level. The course covers a wide range of macroeconomic thought within a mathematical and analytical framework, starting from the Keynesian IS-LM model and extending to the Classical model, AD-AS analysis, theories of consumption and investment, and dynamic macroeconomic modeling (including differential and difference equations, phase diagram analysis, the Hamiltonian method, and optimal control theory). It also adresses Monetarism, New Classical and New Keynesian macroeconomic schools, as well as modern DSGE modeling approaches. The course aims to equip students with the skills to formulate and solve macroeconomic models mathematically, conduct comparative statics anaylsis, and derive policy implications. |
| Course Learning Outcomes |
The students who succeeded in this course;
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| Course Content | National income accounting, aggregate supply and demand, first models, behavioral foundations. |
Weekly Subjects and Releated Preparation Studies
| Week | Subjects | Preparation |
|---|---|---|
| 1 | Introduction to Macroeconomics: Fundamental Concepts, National Income Accounting, and the Historical Development of Macroeconomic Schools | Dornbusch, Fisher & Startz Chapter 1-2; Romer Chapter 1;Lecture Notes (Macroeconomic Schools) |
| 2 | Keynesia Analysis and the IS-LM Model: Goods Market Equilibrium, Derivation of the IS Curve, Money Market Equilibrium, and Derivation of the LM Curve | Dornbusch, Fischer&Startz Chapter 10-11;Heijdra Chapter 1;Lecture Notes (IS-LM Mathematics) |
| 3 | Monetary and Fiscal Policies in the IS-LM Model: Comparative Statics Analysis, Policy Multipliers, and the Crowding - Out Effect | Dornbusch, Fischer& Startz Chapter 11;Lecture Notes (Comparative Statics) |
| 4 | Special Cases of the IS-LM Model:Liquidity Trap, Classical Case, Full Crowding-Out;The IS-LM-BP Open Economy Model (Mundell-Fleming) | Dornbusch, Fischer& Startz Chapter 12;Heijdra Chapter 1;Lecture Notes (Special Cases) |
| 5 | The Classical Model:Labor Market, Cobb-Douglas Production Function, Quantity Theory of Money, Classical Dichotomy, and the Mathematica Proof of Policy Ineffectiveness | Romer Chapter 1; Dornbusch, Fischer&Startz Chapter 5-6;Lecture Notes (Classical Model) |
| 6 | Aggregate Deman-Aggregate Supply (AD-AS) Model: Keynesian and Classical AS Curves, Price Adjustment, and Short-Run and Long-Run Equilibrium Analysis | Dornbusch,Fisher&Startz Chapter 6-7;Heijdra Chapter 1 |
| 7 | Consumption Theories: Keynesian Consumption Function, Fisher's Intertemporal Choice Model, Permanent Income Hypothesis, Life-Cycle Hypothesis, and Hall's Random Walk Model | Dornbusch, Fischer& Startz Chapter 13;Heijdra Chapter 6 |
| 8 | ||
| 9 | Investment Theories:Neoclassical Investment Model, Tobin's q Theory, Accelerator Model; Dynamic Cobweb Model and Difference Equations | Romer Chapter 9;Dornbusch, Fischer& Startz Chapter 14;Lecture Notes (Cobweb Model) |
| 10 | IS-LM Dynamics: Systems of Differential Equations, Phase Diagram Analysis, Jacobian Matrix, Eigenvalue Analysis, and Stability Conditions | Heijdra Chapter 1-2;Lecture Notes (Dynamic IS-LM); Gandolfo Economic Dynamics |
| 11 | Mathematical Methods: Differential and Difference Equations, Dynamic Optimization, Lagrange and Hamilton Methods, and Introduction to Optimal Control Theory | Chiang, Fundamental Methods of Mathematical Economics; Heijdra Appendices A-B; Lecture Notes |
| 12 | Monetarism and New Classical Macroeconomics: Rational Expectations, Lucas Supply Function, Policy Ineffectiveness Theorem, and Real Business Cycle (RBC) Theory | Romer Chapter 5-6;Dornbusch,Fisher& Startz Chapter 19-20;Lecture Notes (Schools) |
| 13 | New Keynesian Macroeconomics: Price Stickiness, Calvo Pricing, New Keynesian Phillips Curve (NKPC), Taylor Rule;Introduction to DSGE Models | Romer Chapter 7,12;Gali, Monetary Policy;Inflation and the Business Cycle Chapter 1-3;Lecture Notes |
| 14 | Modern Macroeconomic Synthesis and Current Debates: New Neoclassical Synthesis, Behavioral Macroeconomics, Financial Frictions, and Post-Pandemic Macroeconomic Policy Discussions | Romer Chapter 12-13; Woodford, Interest and Prices (selected chapters); Lecture Notes |
Sources
| Course Book | 1. Romer, D. Advanced Macroeconomics, 5th Edition, McGraw-Hill, 2019. |
|---|---|
| 2. • Heijdra, B. J. Foundations of Modern Macroeconomics, 3rd Edition, Oxford University Press, 2017. | |
| 3. Dornbusch, R., Fischer, S. & Startz, R. Macroeconomics, 13th Edition, McGraw-Hill, 2018. |
Evaluation System
| Requirements | Number | Percentage of Grade |
|---|---|---|
| Attendance/Participation | 1 | 10 |
| Laboratory | - | - |
| Application | - | - |
| Field Work | - | - |
| Special Course Internship | - | - |
| Quizzes/Studio Critics | 1 | 15 |
| Homework Assignments | - | - |
| Presentation | - | - |
| Project | - | - |
| Report | - | - |
| Seminar | - | - |
| Midterms Exams/Midterms Jury | 1 | 50 |
| Final Exam/Final Jury | 1 | 50 |
| Toplam | 4 | 125 |
| Percentage of Semester Work | |
|---|---|
| Percentage of Final Work | 100 |
| Total | 100 |
Course Category
| Core Courses | X |
|---|---|
| Major Area Courses | |
| Supportive Courses | |
| Media and Managment Skills Courses | |
| Transferable Skill Courses |
The Relation Between Course Learning Competencies and Program Qualifications
| # | Program Qualifications / Competencies | Level of Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| 1 | Compares basic approaches and/or theories in political economy and critically evaluates each one | X | ||||
| 2 | Compares basic macroeconomic theories and/or approaches and critically evaluates each one | X | ||||
| 3 | Solves problems using complementary approaches from other related disciplines (political science, sociology, etc.) | X | ||||
| 4 | Develops necessary skills to establish micro-macro relationships in humanities and social sciences | X | ||||
| 5 | Analyzes basic economic indicators and makes interpretations | X | ||||
| 6 | Acquires theoretical knowledge by conducting literature review and derives empirically testable hypotheses | X | ||||
| 7 | Develops new approaches/theories to solve complex problems in political economy | X | ||||
| 8 | Can apply critical thinking and/or qualitative and quantitative techniques to new fields/problems | X | ||||
| 9 | Can design research and conduct the research within an appropriate time frame | X | ||||
| 10 | Can develop and present policy recommendations based on academic research | X | ||||
| 11 | Continues learning and can conduct advanced research independently | X | ||||
ECTS/Workload Table
| Activities | Number | Duration (Hours) | Total Workload |
|---|---|---|---|
| Course Hours (Including Exam Week: 16 x Total Hours) | 16 | 3 | 48 |
| Laboratory | |||
| Application | |||
| Special Course Internship | |||
| Field Work | |||
| Study Hours Out of Class | 16 | 2 | 32 |
| Presentation/Seminar Prepration | |||
| Project | |||
| Report | |||
| Homework Assignments | 1 | 10 | 10 |
| Quizzes/Studio Critics | |||
| Prepration of Midterm Exams/Midterm Jury | 1 | 15 | 15 |
| Prepration of Final Exams/Final Jury | 1 | 20 | 20 |
| Total Workload | 125 | ||