Advanced Development Economics: Applied Macroeconomic and Policy Analysis

Course content

The course considers a range of policy-relevant topics that applied economists face in low and middle income countries. The course focuses on short- and medium-run macroeconomic management. Topics covered include basic data and metrics for applied macroeconomists, national accounts analysis, macroeconomic consistency models, forecasting, real exchange rate valuation and fiscal sustainability.

The objective is to develop an understanding of various methods/tools, their strengths and weaknesses, and how they have been applied in practice. In doing so, the course aims to provide students with skills to critically assess a range of applied macroeconomic and economic policy issues in low and middle income country contexts.

The course complements the existing Masters-level development economics courses (“Micro aspects” and “Macro aspects”). It makes a bridge between specific microeconomic topics and the fundamental determinants of growth.

The course should be relevant for students that seek to work as applied economists, such as: emerging markets finance, international organizations, government ministries, or diplomatic missions etc..

Students are expected to be actively involved, particularly in discussion of concrete policy problems and case studies.

Learning outcome

After completing the course, the student should be able to:


  • Understand the role of and challenges facing economists in policy-making in developing countries

  • Develop a working knowledge of basic analytical tools used to investigate macroeconomic policy challenges/developments in developing countries. These include national accounts indicators, consistency frameworks, forecasting, real exchange rate evaluations and fiscal sustainability analysis

  • Understand standard international parity conditions and other modelling assumptions often applied in macroeconomic analysis for developing countries

  • Demonstrate knowledge of findings in the empirical literature, including country cases studies and applications, which shed light on the range of topics covered in the course


  • Be able to evaluate the quality of evidence in the empirical literature covered in the course, such as the effects of macroeconomic policy choices on development outcomes

  • Be able to discuss the strengths, weaknesses and overall suitability of different model assumptions and analytical tools often used in developing country macroeconomic analysis


  • Develop familiarity with key macroeconomic data series and their quality

  • Develop a broad understanding of macroeconomic challenges facing developing countries

  • Be able to reflect on appropriate priorities for macroeconomic policy-making in developing countries

  • Be able to apply basic macroeconomic analytical tools, such as analysis of national accounts and real exchange rate evaluations to different contexts or data

  • Be able to critically discuss underlying models, empirical methods and findings that concern macroeconomic management in developing countries


Teaching will be based on class lectures. Active participation on an individual and group basis is expected.
Students will be required to present their own work in class (see Exam registration requirements below).

There is no textbook for the course. Readings will be taken from assigned journal articles and working papers.

Links to the required readings will be made available on the course website (Absalon).

A bachelors degree in economics is required, with coverage of macroeconomics. It is strongly recommended that Macro III has been followed prior to taking "Advanced Development Economics: Applied Macroeconomic and Policy Analysis". Some previous coverage of introductory development economics is helpful but not necessary.

2 hours lectures 1 to 2 times a week from week 36 to 50 (except week 42).

The overall schema for the Master can be seen at https:/​/​​economics_ma/​courses/​CourseCatalogue-E17/​Courseschema/​Pages/​default.aspx

Timetable and venue:
To see the time and location of lectures please press the link under "Se skema" (See schedule) at the right side of this page. E means Autumn.

You can find the similar information partly in English at
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-E17; [Name of course]””
-Select Report Type: “List – Weekdays”
-Select Period: “Efterår/Autumn – Weeks 31-5”
Press: “ View Timetable”

7,5 ECTS
Type of assessment
Written assignment, 24 hours
- an individual take-home exam. The exam assignment is in English and must be answered in English.
All aids allowed
Marking scale
7-point grading scale
Censorship form
External censorship
if chosen by the Head of Studies.
Criteria for exam assessment

Students are assessed on the extent to which they master the learning outcome for the course.

To receive the top grade, the student must be able to demonstrate in an excellent manner that he or she has acquired and can make use of the knowledge, skills and competencies listed in the learning outcomes.

In order to earn a grade 12 students must then be able to:

  • Critically discuss macroeconomic management priorities and challenges facing applied macroeconomists in developing country contexts

  • Demonstrate knowledge of the empirical literature, including specific country cases

  • Evaluate the quality of existing empirical evidence concerning the topics covered in the course

  • Explain basic analytical tools used to investigate macroeconomic policy challenges/developments in developing countries

  • Reflect on the strengths, weaknesses and suitability of different tools/models/assumptions as applied in alternative situations

  • Apply specific analytical methods/tools in a simplified setting


The above aptitudes should be demonstrated at a high level, incorporating clear communication based on an academic style.

Single subject courses (day)

  • Category
  • Hours
  • Lectures
  • 42
  • Exam
  • 24
  • Preparation
  • 140
  • English
  • 206