2021 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
Media-enhanced courses: -
Day of week/Period (Classrooms): 5-6 Mon (S421) / 5-6 Thu (S421)
Class: -
Course Code: IEE.B332
Number of credits: 200
Course offered: 2021
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 overlapping-generations model and the Ramsey growth model and its application.

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 overlapping-generations model
2) Basic knowledge of the Ramsey growth model
3) Basic knowledge of economic growth theory

Keywords

Macroeconomics, Mico-foundations, Overlapping-generations model, Ramsey 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. Explain the micro-foundations for macroeconomics.
Class 2	Overlapping-generations model (1) - Introduction and Household behavior	Explain household behavior.
Class 3	Overlapping-generations model (1) - Firm Behavior	Explain firm behavior.
Class 4	Overlapping-generations model (1) - Equilibrium Dynamics	Explain equilibrium dynamics.
Class 5	Overlapping-generations model (1) - Dynamic Inefficiency	Explain dynamic inefficiency.
Class 6	Overlapping-generations model (1) - Social Security	Explain how to introduce social security system.
Class 7	Overlapping-generations model (1) - Social Security and Population Aging	Explain the effects of social security.
Class 8	Ramsey Growth Model (1) - Introduction	Explain the motivation of the Ramsey Growth Model.
Class 9	Ramsey Growth Model (2) - Household and Firm Behavior	Explain household and firm behavior
Class 10	Ramsey Growth Model (3) - Equilibrium Dynamics	Explain the dynamics of consumption and capital.
Class 11	Ramsey Growth Model (4) - Technology Shock	Explain the effects of technology shocks.
Class 12	AK model (1) - Introduction	Explain the basic structure of the AK model.
Class 13	AK model (2) - Policy Analysis	Explain how some policies affect growth path.
Class 14	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)

No text books are set.

Reference books, course materials, etc.

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

Evaluation methods and criteria

Midterm and Final Exams

Related courses

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

Prerequisites

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