2025 (Current Year) Faculty Courses School of Engineering Undergraduate major in Industrial Engineering and Economics
Macroeconomics II
- Academic unit or major
- Undergraduate major in Industrial Engineering and Economics
- Instructor(s)
- Hiroshi Morita
- Class Format
- Lecture
- Media-enhanced courses
- -
- Day of week/Period
(Classrooms) - Class
- -
- Course Code
- IEE.B204
- Number of credits
- 200
- Course offered
- 2025
- Offered quarter
- 4Q
- Syllabus updated
- Mar 19, 2025
- Language
- Japanese
Syllabus
Course overview and goals
Students study the structure and solution method for dynamic macroeconomics model with micro-foundation in this course. I also introduce the definition and properties of macroeconomic data related to the theoretical model. The aims of this course is to develop a correct understanding of the actual business cycle based on data and theory, and the ability to construct models that can describe the real economy.
Course description and aims
The goals of this course are as follows:
1. Students understand the structure of dynamic macroeconomic model.
2. Students understand how to solve the dynamic macroeconomic model.
2. Students understand the transmission channels of structural macroceonomic shocks based on the model.
Keywords
Dynamic optimization problem, Neo-classical growth model, Real business cycle model, New-Keyesian model
Competencies
- Specialist skills
- Intercultural skills
- Communication skills
- Critical thinking skills
- Practical and/or problem-solving skills
Class flow
The class will be conducted in a lecture format using slides and a board. I will give several assignments during the course.
Course schedule/Objectives
| Course schedule | Objectives | |
|---|---|---|
| Class 1 | Guidance | About macroeconomics |
| Class 2 | Review of optimization problem | Review the solution method of optimization problem using Lagrangian. |
| Class 3 | Data on macroeonomy | Introduce the definition of GDP and price index. |
| Class 4 | Solow economic growth model | Study the structure of infinite-horizon model using Solow ecoomic growth model. |
| Class 5 | Neo-classical growth model 1: Struture of the model | Study the structure and solution method for Ramsey model. |
| Class 6 | Neo-classical growth model 2: Transmission of the shocks | Study the transmission channel of structural shock in Ramsey model. |
| Class 7 | Shooting algorithm | Study the shooting algorithm for solving Ramsey model numerically. |
| Class 8 | Real business cycle model 1: Struture of the model | Study the structure of RBC model. |
| Class 9 | Real business cycle model 2: Phase diagram and linear approximation | Study the method of log-linear approximation using RBC model. |
| Class 10 | Real business cycle model 3: Simulation analysis | Study the simulation analysis of RBC model using Dynare. |
| Class 11 | Money-in-Utility model | Study the properties of macroeconomic model with momey. |
| Class 12 | New Keynesian model 1: Struture of the model | Study the struture of NK model with price stickiness. |
| Class 13 | New Keynesian model 2: Simulation analysis | Study the effect of monetary policy shock in NK model. |
| Class 14 | Review of the Course | Review of the course. |
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)
There is no specific textbook for this course. Handouts or slides used for each class will be available on the corresponding page of T2SCHOLA.
Reference books, course materials, etc.
・McCandless, G., 2008. The ABCs of RBCs - An Introduction to Dynamic Macroeconomic Models-, Harvard University Press.
Evaluation methods and criteria
Final examination (80%) and assignments (20%).
Related courses
- IEE.B203 ： Macroeconomics I
- IEE.B201 ： Microeconomics I
- IEE.B202 ： Microeconomics II
- IEE.B332 ： Applied Macroeconomics
Prerequisites
The prerequisite for this course is Macroeconomic I. I hope students are interested in macroeconomics.