Advanced Macroeconomic Theory II
Instructor: 
Frederic Tournemaine, Ph.D.,
NipitWongpunya, Ph.D.
Tanapong Potipiti, Ph.D. 
Course Description:  Dynamic general equilibrium models; Macroeconomic implications of imperfections in good markets, labor markets, credit and financial markets; New Keynesian model for monetary and fiscal policy analysis; current issues in international macroeconomics; endogenous growth model. 
Part I  Growth 
Instructor  Frederic Tournemaine, Ph.D. 
Required textbooks:  "Growth Theory: Basic models with alternative applications" by Frederic Tournemaine, CUP, 2011 
Tentative Outline :  
Lecture 1 : RamseyCassKoopmans Model  
1. Welfare Analysis
 Problem of the social planner 

Lecture 2 : The AK approach to endogenous growth theory  
1. Endogenous growth in the “AK” model 

Lecture 3 : The human capital approach to growth theory  
1. A simple model with human capital 

Lecture 4 : The R&Dbased Approach to Endogenous Growth  
1. Microeconomic structure of the model of expanding product variety of Romer (1990) 

Lecture notes :  
Part II  Dynamic macroeconomics 
Instructor  Nipit Wongpunya, Ph.D. 
The main textbooks 
 Sargentand Ljungqvist (2000),Recursive Macroeconomic Theory,MIT Press. 
The optional readings 
 Adda and Cooper (2003), Dynamic Economics: Quantitative Methods and Applications, MIT Press. 
Tentative Outline :  
Lecture 1 : Linear Difference Systems (November 2)  
Lecture notes :  Samuelson,P.A., “Interactions between the Multiplier Analysis and the Principle of Acceleration,” The Review of Economic Statistic, Vol.21, No.2.(May, 1929), pp. 7578.
 Slutzky, E., “The Summation of Random Causes as the Source of Cyclical Processes,” Econometrica, Vol.5 (July 1937):105146
 J. Tinbergen, “Econometric Business Cycle Research,” The Review of Economic Studies, Vol.7, No2. (Feb., 1940), pp. 7390.
 Chow, G. Analysis and Control of Dynamic Economic Systems, Krieger, Malabar, 198
 Chapter 1: “Problems of Dynamic, Stochastic Economies”
 Chapter 2: “Analysis of Deterministic Linear Systems”
 Chapter 3: “Analysis of Linear Stochastic Systems: Time Domain”
 Hamilton (1994), Time Series Analysis, Ch 2,3,4


Lecture 2 : Rational Expectation and Lucas Critique (November 9)  
Lecture notes 

Lecture 3 : Solving Linear Rational Expectation Models (Novermber 16)  
Lecture notes and Handouts distributed in class(or email) 

Lecture 4 : Dynamic Optimization(November23)  
Lecture notes Handouts distributed in class(or email) 

Lecture 5 and 6 : Dynamic Programming (November 30 and December 7)  
Lecture notes : Handouts distributed in class(or email)  Sargentand Ljungqvist, Recursive Macroeconomic Theory, Ch2,3 and 4 

Lecture notes : Lecture 01Lecture 02 Lecture 03 Lecture 04 Lecture 05 and 06 Lecture 07 Lecture Notes 
Part III  Numerical methods 
Instructor  Tanapong Potipiti, Ph.D. 
Required textbooks  Applied Computational Economics and Finance by Mario J. Miranda and Paul L. Fackler 
Tentative Outline 
Lecture 1 : Basic Programing 