230336 :Macroeconomics 3 (CentER)


Voertaal Engels
Werkvorm: lectures, tutorials (Collegerooster)
Tentamenvorm: Written final exam (80%) and regular graded homework assignments (20%). (Tentamenrooster)
Studielast:6 ECTS credits
Blackboard informatieLink to Blackboard (Als u de melding 'Guest are not allowed in this course' krijgt, dient u nog bij Blackboard in te loggen)


dr. G.C.L. Vannoorenberghe (Coordinator)

dr. B.J.A.M. van Groezen

prof. dr. R. Gerlagh

D.A. Hillrichs (TA)

Doel van de cursus (alleen in het Engels beschikbaar)

The first part of the course focuses on the analysis on macroeconomic linkages in open economies. The second part introduces students to models of overlapping generations while the third part addresses the role of macroeconomics models in the area of climate change.

Inhoud van de cursus (alleen in het Engels beschikbaar)

The first part of the course provides a selective discussion of analytical models and empirical issues in open-economy macroeconomics. Topics include the global imbalances, the effectiveness of monetary and fiscal policy in open economies (small and large), purchasing power parity, and the dynamics of the current account and real exchange rate as well as the so-called New Open Economy Macroeconomic Models, which has been the dominant approach in the recent literature.

The second part of the course discusses the overlapping-generations (OLG) model. The OLG model introduces a turnover of households and is a convenient framework to study, e.g. the role of social security in capital accumulation or the impact of government finances on economic activity.

The third part of the course discusses the use of macro-economic models in long-term policy areas, specifically climate change and sustainable growth. We discuss the most famous macro-model with climate change used for climate policy analyses (Nordhaus, AER, 1993), and recent developments leading to tractable analytical macro models with climate change (Golosov et al., Econometrica 2014). We discuss limitations (e.g. time-consistent preferences for representative consumers) and extensions, e.g. connect these Ramsey-based models to the OLG literature, and to uncertainty.

Bijzonderheden (alleen in het Engels beschikbaar)

Before enrolling all non-CentER students should ask permission to the Director of Graduate Studies in Economics. Please send your request for permission to CentER Graduate School at center-gs@uvt.nl.

Verplichte literatuur

  1. Lecture notes for the first part and a selection of seminal articles..
  2. Romer, David, Advanced Macroeconomics, New York: McGraw-Hill, 2006. (3rd edition)
  3. Nordhauw, W., 1993., Optimal Greenhousse-gas reductions and tax policy in the 'DICE' model., American Economic Review 83. 313-317.
  4. Golosov, M., Hassler, J., Krusell, P., Tsyvinski, A., 2014., Optimal taxes on fossil fuel in general equilibrium., Econometrica 82(1). 44-88

Gewenste voorkennis

A solid background in mathematics, especially in calculus, dynamic optimization, and probability theory is required.

Vereiste voorkennis

Quantitative Methods (CentER) Macroeconomics 1 (CentER) and Macroeconomics 2 (CentER)

Verplicht voor