- Class Number 3456
- Term Code 3230
- Class Info
- Unit Value 6 units
- Mode of Delivery In Person
- AsPr Timothy Kam
- AsPr Timothy Kam
- Class Dates
- Class Start Date 21/02/2022
- Class End Date 27/05/2022
- Census Date 31/03/2022
- Last Date to Enrol 28/02/2022
This course introduces contemporary theory for examining central questions in macroeconomics: growth, unemployment, inflation, and business cycles.
Upon successful completion, students will have the knowledge and skills to:
- Be familiar with the main macroeconomic models used to study economic growth and the business cycle
- Be able to formulate in general equilibrium simple intertemporal models of household and firm behaviour
- Understand the key shocks and propagation mechanisms present in business cycle models
- Be able to solve and employ simple stochastic business cycle models to address questions about the macro-economy
Some of the skillsets, major questions, insights and case studies learned in this course relate directly to the frontier work your instructor and his colleagues are engaged in. In particular, the instructor’s emphasis on self-disciplined learning, critical and research-like independent thinking is designed to encourage students to become leaders in their own future spheres who are capable of tackling new and challenging issues. Your instructor is an active researcher in the fields of Macroeconomics and Monetary Economics. He sometimes develops new computational methods for solving difficult economic problems, such as dynamic public insurance games in the face of agent heterogeneity, or in models with endogenous market incompleteness in which monetary policy has a non-trivial redistributive role. He publishes regularly in the leading journals of his fields. He is also a regular visitor and contributor to leading policy institutions around the world, such as the U.S. Federal Reserve Bank system, the Reserve Bank of New Zealand, Bank of Japan, and the Hong Kong Monetary Authority. He currently serves as Chief Technology Officer of the not-for-profit Australasian Macroeconomics Society, as a Consultant (International Professorial Fellow) at Sungkyunkwan University, as a member of the Inclusion, Diversity, Equity and Access (IDEA) Committee, Floor Warden and First Aid Officer at ANU's College of Business and Economics.
Examination Material or equipment
The examinations will likely to be monitored live and online. Details to be provided on WATTLE closer to examination dates. Students are responsible for ensuring that their computer audio and video are in working order. These are required to be active during the examinations.
- Recursive Macroeconomic Theory, 4th Edition, 2018 (MIT Press) : Main textbook*
by Lars Ljungqvist and Thomas J. Sargent (“LS”)
- Economic Dynamics in Discrete Time, 2014 (MIT Press)
by Jianjun Miao (“Mi”)
- Custom Notes (a.k.a. “CN”):
- Linked from WATTLE
- Other Useful References:
- Carl E. Walsh (2003). Monetary Theory and Policy. MIT Press. (“Wa”)
- Ed Nosal and Guillaume Rocheteau (2011), Money, Payments, and Liquidity. MIT Press. (“NR”)
- Daron Acemoglu (2009). Introduction to Modern Economic Growth. MIT Press. (“Ac”)
- Jerome Adda and Russell Cooper (2003). Dynamic Economics. MIT Press.
- Mario J. Miranda and Paul L. Fackler (2002). Applied Computational Economics and Finance. MIT Press.
- Ben J. Heijdra and Frederick van der Ploeg (2002). The Foundations of Modern Macroe- conomics. Oxford University Press.
- John Stachurski and Thomas J. Sargent (2014-). Quantitative Economics (quantecon.org)
- Nancy Stokey and Robert E. Lucas, Jr. (with Ed Prescott). Recursive Methods in Eco- nomic Dynamics. Harvard University Press.
- Charles I. Jones (2013), Macroeconomics, 3rd International Student Edition, New York: Norton. (For undergraduate revision.)
- David Romer (2006), Advanced Macroeconomics, 3rd Edition, McGraw-Hill. (For diploma- level revision.)
*Copies are available from the ANU Library’s 2-Hour Reserve listing. These books are not available as ebooks via ANU Library. Remote students can order copies from any bookseller online.
The modern economics student is expected to possess not just analytical skills but increasingly computational skills, both in academia and in the wider marketplace for economists. You are not expected to have any prior training in such skills, but you are expected to have a flexible and open mind towards learning it as we go.
- To maximize your experience and feedback on your progress, please attempt all the tutorial problem sets before attending tutorials.
- Most of the learning is reinforced through solving problems on your own and being able to discuss it with the class afterwards.
- An incentive that encourages you to excel in this dimension is provided in the TP and RA assessment items.
Lecturer and Teaching Assistants' Office Hours
- For maximal value, you should have read the relevant materials (textbook, lecture slides) and attempted problems, before turning up to office hours with questions.
- If you have any difficulties, please do not hesitate to come and see us; and do not wait until the end of semester to do so.
- We are here to assist your learning and also to ensure that your university experience continues to be a fun and rewarding one!
- Note: This course does not encourage last minute rote learning. There will be no additional (i.e., pre-examination) office hours provided beyond Week 12 of the instruction period. You are encourage to seek help early on during the semester.
- Answers to these activities and general discussions relating to how you understood the material tested will be provided in class.
- Your work will be returned to you with comments within two weeks of each assignment deadline.
- The first feedback will be provided before the end of Week 6.
- Feel free to post short questions related to the course material on WATTLE Forum. The usual internet etiquette applies. The teaching team may answer your questions occasionally. However, please reserve long queries to physical office hours, as we can best help you there.
ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.
|Week/Session||Summary of Activities||Assessment|
|1||Basic modelling skillset (A): Accessing and setting up your GitHub account The Jupyter Notebook Environment Some Basics of Scientific Programming in Python||View pre-workshop video lectures Attend and participate in live workshop and Q&A|
|2||Basic modelling skillset (B): More Basics of Scientific Programming in Python Convex Optimization and Fixed-point problems Examples and applications: Visualizing data and statistical analysis Plotting and visualizing model functions Visualizing model equilibria Computing model equilibria --- analytical vs numerical approximation Comparative Statics||View pre-workshop video lectures Attend and participate in live workshop and Q&A Live tutorial/lab|
|3||Economic Growth: Economic Growth and Empirical Regularities Recursive Equilibrium by Example: Solow-Swan and other model variations OLG model Human capital, Demographics, R&D||View pre-workshop video lectures Attend and participate in live workshop and Q&A Live tutorial/lab Assessment Task 1.1 (Weeks 1 and 2 material) - due at end of Week 4.|
|4||General equilibrium, finance and macro dynamics (A): Business-cycle Measurement and Empirical Regularities Complete financial markets benchmark Asset Pricing||View pre-workshop video lectures Attend and participate in live workshop and Q&A Live tutorial/lab|
|5||General equilibrium, finance and macro dynamics (B): Fundamental Welfare Theorems of General Equilibrium Model Variations||View pre-workshop video lectures Attend and participate in live workshop and Q&A Live tutorial/lab|
|6||From Neoclassical Growth to RBC models (A): Stochastic processes - methods, applications, computation General equilibrium ideas in a quantitative laboratory Approximate, local perturbation solution methods Connections: black-box time-series statistical models The Kalman filter Taking Theory to Data: Structural Estimation||View pre-workshop video lectures Attend and participate in live workshop and Q&A Live tutorial/lab Assessment Task 1.2 (Weeks 1 to 5 material) - due in 2 weeks.|
|7||RBC extensions, Money and Inflation (B): Global solution methods - Dynamic Programming (Equilibrium) Functional Fixed Point Iterations Connections to Fundamental Welfare Theorems Examples: Basic closed-economy model Model with money Taxation Recursive preferences Open economy setups The New Keynesian extension||View pre-workshop video lectures Attend and participate in live workshop and Q&A Live tutorial/lab|
|8||Job Search and Unemployment (A) Connecting to undergraduate "bathtub model" Long-run data on labour markets Unemployment, Job Search||View pre-workshop video lectures Attend and participate in live workshop and Q&A Live tutorial/lab|
|9||Search and Non-Walrasian Matching Markets (B) Unemployment, Job Search and Matching Why are similar workers paid differently? Frictional labour markets and Walrasian RBC framework||View pre-workshop video lectures Attend and participate in live workshop and Q&A Live tutorial/lab Assessment Task 1.3 (Weeks 1 to 8 material) - due at end of Week 10.|
|10||Heterogeneity and Wealth Inequality OLG model Human capital Log-normal distributions Dynamics of living standard growth and wealth inequality When does the representative agents result break apart? How to think about the rich vs poor? Whither model? Connecting back to microdata on wealth and consumption inequality Taxation and redistribution||View pre-workshop video lectures Attend and participate in live workshop and Q&A Live tutorial/lab|
|11||Critical reading, replication and communication skills (A) Choose and critically study a recent paper (papers TBA) Topics related to current and extended issues: COVID19, Supply Chain, Financial Networks, and etc. Prepare a short talk for live presentation and a critical written report||Attend and participate in live presentation sessions Assessment Task 1.4 - Presentation Week 1 - available from Week 5, ongoing task, due at end of Week 12.|
|12||Critical reading, replication and communication skills (B) Choose and critically study a recent paper (papers TBA) Topics related to current and extended issues: COVID19, Supply Chain, Financial Networks, and etc. Prepare a short talk for live presentation and a critical written report||Attend and participate in live presentation sessions Assessment Task 1.4 - Presentation Week 2 - available from Week 5, ongoing task, due at end of Week 12.|
|13||Final Examination||Assessment Task 2|
Tutorials this semester will be delivered on-campus and on Zoom (for students stuck overseas). You are expected to attend one tutorial each week from Week 2 onwards. You must enrol in a tutorial using the Wattle site for this course, and attend the tutorial in which you are enrolled. A selection of tutorials will be open for enrolment prior to the beginning of the semester - the remaining tutorials will be open in week 1 of the Semester.?When tutorials are available for enrolment, follow these steps:
1. Log on to Wattle, and go to the course site
2. Click on the link “Tutorial enrolment”
3. On the right of the screen, click on the tab “Become Member of…..” for the tutorial class you wish to enter
4. Confirm your choice
If you need to change your enrolment, you will be able to do so by clicking on the tab “Leave group….” and then re-enrol in another group.?You will not be able to enrol in groups that have reached their maximum number.?Please note that enrolment in ISIS must be finalised for you to have access to Wattle.
|Assessment task||Value||Learning Outcomes|
|Assessment Items 1 to 4 - Problem Sets (Hurdle and Compulsory Assessment)||50 %||1,2,3,4,5|
|Final Examination (Compulsory and Hurdle Assessment)||50 %||1,2,3,4,5|
* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details
ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:
The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the Academic Integrity . In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.
Moderation of Assessment
Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.
Lectures are delivered as pre-recorded videos linked from WATTLE. These are available by 7 am each Monday in the week the lecture material is taught. Students are encouraged to view these alongside their readings and make their own study notes during the week, prior to attempting weekly problem sets. Tutorial problem sets will usually be available by the middle of each week for students to attempt prior to each following week's live tutorials. Live tutorials (in-person and/or on Zoom) will cover exercises and Q&A that reinforce the lecture topics each following week. The instructor will host these live meetings together with teaching assistants. Students are strongly advised to prepare and participate in tutorials each week.
Due to travel restrictions this course will be largely delivered through online platforms.?Aspects of the delivery will be asynchronous. However, there will be synchronous activities also taking place (both online and on campus). Details on the delivery of this course and expectations of student participation are outlined in further detail on the Wattle course site in O-week. Attendance at synchronous activities, while not compulsory, is expected in line with “Code of Practice for Teaching and Learning”, clause 2 paragraph (b).
See Assessment Tasks. The examinations will likely be monitored live and online. Details to be provided on WATTLE closer to examination dates. Students are responsible for ensuring that their computer audio and video are in working order. These are required to be active during the examinations.
Assessment Task 1
Learning Outcomes: 1,2,3,4,5
Assessment Items 1 to 4 - Problem Sets (Hurdle and Compulsory Assessment)
This is a hurdle assessment in line with the student assessment coursework policy (see https://policies.anu.edu.au/ppl/document/ANUP_004603).
- You must complete and submit at least half of the total number of available assignments to be eligible to sit the final exam and to complete the course. Students are strongly encouraged to submit all items as consistent work is key to completing this course successfully.
- Overall course weight:
- Item 1: 10%
- Item 2: 10%
- Item 3: 15%
- Item 4: 15%
- Each of these assessment items is redeemable against the final exam.
- Example 1: You submitted Items 1 and 2 only. In this case, the weights of the missing Items 3 and 4 will be shifted to your Final Exam.
- Example 2: You submit all or at least half of these items but got very low scores. In this case, we will compute the maximum of two possibilities as your course mark: The appropriate weighted average of Task 1 (submitted items) and Task 2 or Task 2 alone.
- Task 1's items 1 to 4 will involve problem-solving, coding and written communication requirements.
- Foster critical thinking, basic and technical reading comprehension.
- Training in careful, systematic replication of results and appreciation of scientific rigour.
- Check-up on your mastery of material taught and ability to think laterally and creatively.
- Build up professional written and oral communication skills.
- Encourage teamwork and interpersonal communication.
- Replicable Jupyter Notebooks and PDF readable copies.
- PDF facsimiles of Jupyter Notebooks and any other required PDF work to be submitted through WATTLE and Turnitin (for plagiarism checking).
- Where instructed, use professionally written and typeset documents in LaTeX.
- If indicated and permitted, you may work in a group of no more than 4 students.
Assessment Task 2
Learning Outcomes: 1,2,3,4,5
Final Examination (Compulsory and Hurdle Assessment)
- This is a hurdle and compulsory assessment task: You must have completed at least half of all the items in Task 1 (above) to be eligible to pass this course.
- This is a hurdle assessment in line with the student assessment coursework policy (see https://policies.anu.edu.au/ppl/document/ANUP_004603). You must also at least pass the final examination in order to pass the course.
- Questions requiring problem-solving, logical thinking, mathematical proofs, computer coding and writing in plain and professional English.
- These may be in multiple choice form and/or free response form.
- The exam will be a take-home, solo project and will require no more than 8 hours for completion.
- The exam will not be invigilated.
- The exam will test individual understanding and mastery of all the material discussed/mentioned in lectures, required readings and tutorials/labs leading up to the examination week.
- Submitted work must be original and submissions to be done through Turnitin. Where replicable work is required, clearly explained proofs, derivations and plain-English commentary in executable Jupyter Notebooks must accompany other material submitted through Turnitin.
- More details are to be provided by Week 10.
Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.
The ANU commits to assisting all members of our community to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to be familiar with the academic integrity principle and Academic Misconduct Rule, uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with.
The Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.
You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. You do not need to submit via Turnitin.
Regular Assignments (RA) must to be submitted via WATTLE as Jupyter Notebooks with replicable content (unless stated otherwise on RA problem sheet).
For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.
Late submission of assignments will not be graded. If an assessment task is not submitted by the due date, a mark of 0 will be automatically awarded.
Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.
Extensions and Penalties
Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.
Distribution of grades policy
Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.
Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.
Support for students
The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).
- ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
- ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
- ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
- ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
- ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
- ANUSA supports and represents undergraduate and ANU College students
- PARSA supports and represents postgraduate and research students
Macroeconomic Theory and Policy, Monetary Economics, Computational Economics
AsPr Timothy Kam