2020 Faculty Courses School of Engineering Undergraduate major in Industrial Engineering and Economics

Applied Macroeconomics

Academic unit or major: Undergraduate major in Industrial Engineering and Economics
Instructor(s): Takeo Hori
Class Format: Lecture (Zoom)
Media-enhanced courses: -
Day of week/Period (Classrooms): 5-6 Mon (W935) / 5-6 Thu (W935)
Class: -
Course Code: IEE.B332
Number of credits: 200
Course offered: 2020
Offered quarter: 1Q
Syllabus updated: Jul 10, 2025
Language: Japanese

Syllabus

Course overview and goals

This course covers the intermediary macroeconomics. The basic knowledge covered in Macroeconomics I and II is required. This course focuses on the micro-foundation for macroeconomics. Students study the Ramsey growth model and its application including the New Keynesian theories.

This course has two aims. The first is to explain the importance of the micro-foundation for macroeconomics. The second is to understand the Ramsey growth model as an intermediary for the graduate level macroeconomics.

Course description and aims

By the end of this course, students will acquire
1) Basic knowledge of the Ramsey growth model
2) Basic knowledge of business cycle theory
3) Basic knowledge of economic growth theory

Keywords

Macroeconomics, Mico-foundations, Ramsey model, New Keynesian model, Economic Growth

Competencies

Specialist skills
Intercultural skills
Communication skills
Critical thinking skills
Practical and/or problem-solving skills

Class flow

This course uses slides to explain the basic knowledge. Complicated calculations and proofs of theorems are explained in detail using blackboard.

Course schedule/Objectives

	Course schedule	Objectives
Class 1	Introduction	Explain the micro-foundations for macroeconomics.
Class 2	The Ramsey Growth Model (1) - Introduction	Explain the motivation of the Ramsey Growth Model.
Class 3	The Ramsey Growth Model (2) - The Euler Equation	Explain the optimal consumption path.
Class 4	The Ramsey Growth Model (3) - Capital Accumulation and Consumption	Explain the dynamics of consumption and capital.
Class 5	Implications of the Ramsey Growth Model (1) - Theory of Consumption	Explain the permanent income hypothesis.
Class 6	Implications of the Ramsey Growth Model (2) - Tobin's q	Explain the optimal investment.
Class 7	Implications of the Ramsey Growth Model (3) - The Real Business Cycle (RBC) Theory	Explain theories of business cycles.
Class 8	Implications of the Ramsey Growth Model (4) - Fiscal Policy	Explain fiscal policies in the Ramsey growth model.
Class 9	Labor Market (1) - Job Search	Explain job search and the matching function.
Class 10	Labor Market (2) - Downward Wage Rigidity	Explain the downward wage rigidity.
Class 11	The New Keynesian (1) - The Micro-foundation for the AD-AS model	Explain the micro-foundation for the AD-AS model.
Class 12	The New Keynesian (2) - The New Keynesian Phillips Curve	Explain the New Keynesian Phillips curve.
Class 13	The New Keynesian (3) - The AD-AS model	Explain the New Keynesian AD-AS model.
Class 14	Economic Growth - The Solow Model	Explain the Solow Growth Model.
Class 15	Summary	Summary

Study advice (preparation and review)

To enhance effective learning, students are encouraged to spend approximately 100 minutes preparing for class and another 100 minutes reviewing class content afterwards (including assignments) for each class.
They should do so by referring to textbooks and other course material.

Textbook(s)

Makoto Saito et. al. "Macroeconmoics" Yuhikaku ISBN978-4-641-05372-4

Reference books, course materials, etc.

No reference books are set.

Evaluation methods and criteria

Final Exam

Related courses

IEE.B203 ： Macroeconomics I
IEE.B204 ： Macroeconomics II
IEE.B402 ： Advanced Macroeconomics

Prerequisites

The basic knowledge covered in IEE.B203 ： Macroeconomics I and IEE.B204 ： Macroeconomics II is required.