Course Outline 2013-2014 
           
                                              
                                              
                                              
                                              
          Environmental Economics and        Advanced Macroeconomics 
          Natural Resources Group             
          De Leeuwenborch building            
          Hollandseweg 1                      
          6706 KN Wageningen                  
          The Netherlands                     Course code:       ENR-30806 
           
                                              Credits:           6 
           
                                              Examiner(s):       Jeroen Klomp 
                                              Secretariat:       Gré Schurink-Heitkonig 
                                                                 tel 0317 – 484255 
                                              Period:            2 
                                                                 Monday, 8:30-10:15, room C78 
                                              Lectures: 
                                                                 Wednesdays 10:30 – 12:15 room C78 
                                              Tutorials:         Thursdays 8:30 – 10:15 room C78 
                                              Overview lecture:  Wednesday 11/12/2013, 10:00 – 11:00 
                                                                 room C78  
                                              Exam:              Tuesday 17/12/2013, 8:30-11:30, C75 
         
                                                                                                       
                                                                                                       
                                Advanced Macroeconomics 
                                           ENR-30806 (6 ECTS) 
                 
                Aim of the course: 
                 
                This course aims to provide training in modern, advanced macroeconomic theory and give 
                students  a  thorough  understanding  of  some  fundamental  workhorse  models  in 
                macroeconomics used to deal with economic problems. The course is divided in two parts. 
                The first part (week 9 to 11) is dedicated to economic growth and tries to explain income 
                differences across countries. The growth models discussed are the Solow economic growth 
                model, the endogenous growth model and growth models with human capital and natural 
                resources.  The  second  part  of  the  course  (Week  12  to  14)  deals  with  business  cycle 
                fluctuations. The main problem discussed in this part is the trade-off between inflation and 
                unemployment and the  consequences  for  economic  output  in  the  short  run.  Besides,  we 
                discuss if governments are capable to stabilize the economy in the short run using fiscal or 
                monetary policy.  
                 
                Learning outcomes: 
                 
                After successful completion of the advanced macroeconomics course students are able to: 
                 
                Learning outcome:                                                 Assessment: 
                Analyse and evaluate the most fundamental workhorse               Exam, problem set, and essay 
                models in macroeconomics; 
                Evaluate state-of-the-art (applied) macroeconomic literature      Exam, problem set, and essay 
                in a broad range of relevant policy issues; 
                Design a theoretical framework or empirical model for their       Essay 
                own research. 
                 
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                    Prerequisite: 
                     
                    Students should be familiar with basic mathematics such as differentiation and integration 
                    techniques and basic statistics like OLS regressions1. As far as macroeconomics is concerned, 
                    familiarity with an intermediate macroeconomics text such as Mankiw, G., Macroeconomics 
                    (Worth  Publishers)  or  Blanchard,  O.  Macroeconomics  (Prentice  Hall),  or  any  other 
                    intermediate  undergraduate  macroeconomic  textbook  is  desirable.  Also  an  undergraduate 
                    textbook  is  a  good  companion  to  keep  on  track  during  the  course  because  advanced 
                    macroeconomics is quit technical and it is very easy to lose sight of the broader picture. For 
                    students with no or a little background in macroeconomics, a number of chapters from the 
                    book of Mankiw will be selected which gives the basic building blocks of the corresponding 
                    chapter in Sorensen and Whitta-Jacobsen. 
                     
                     Required reading: 
                     
                            Peter  B.  Sorensen  and  Hans  J.  Whitta-Jacobsen  (2010):  Introducing  Advanced 
                             Macroeconomics:  Growth  &  Business  Cycles,  2nd  edition,  McGraw-Hill 
                             (Recommended for purchase) 2. 
                            Selected  papers  (See  the  detailed  course  content  below).  These  papers  can  be 
                             downloaded from EDUweb.  
                              
                    On EDUweb the lecture slides and a number of handouts will be uploaded during the course. 
                    These are also exam material. 
                     
                     
                                         
                    1
                      In the appendix of the book there is a nice and simple explanation of the OLS technique. 
                    2       st
                      The 1  edition of the book can also be used. However, the chapter and pages number are different. On the 
                                                                            st
                    course website there is a detailed reading list for the 1  edition. 
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                 Classes: 
                  
                 There are three classes each week between week 9 and 14.  
                     ◦   Monday 8.30-10.15 Room C78 Lecture/Tutorial  
                     ◦   Wednesday 10.30-13.00 Room C78 Lecture/Tutorial 
                     ◦   Thursday 8.30-10.15 Room C78 Tutorial 
                  
                 The first two classes during a week are combined lecture and tutorial, while the third class of 
                 the week is reserved for tutorials only. In week 15 there is an overview lecture. If you have 
                 questions about the lecture or exercises, there is an official question our every Thursday from 
                 11.00 to 12.00 (Room 3108). Questions can also be send to jeroen.klomp@wur.nl.  
                  
                 Exercises: 
                  
                 Every week a sheet of exercises will be uploaded on the course website. The exercises are 
                 assigned  to  practice  with  the  theories  and  methods  presented  during  the  lectures.  It  is 
                 important to prepare these exercises in advance! 
                   
                 Grading: 
                  
                 The final grade of the course depends on three parts: 
                     1.  Final written exam (in week 16) counting for 70 percent. To pass the course the grade 
                         should be at least 5.5. 
                     2.  Problem set which counts for 10 percent. In week 1 a problem set will be uploaded on 
                         the course website, which should be handed-in in the first class of week 13. 
                     3.  Essay which counts for 20 percent.  
                  
                 The marks for the individual parts of this course will remain valid for one academic year 
                  
                  
                  
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