Macroeconomics 2 - the Long Run (MakØk2)

Knowledge
Students will acquire knowledge of key concepts relating to technology and firm behavior in macroeconomic theory. The course covers the application of optimal control theory to the analysis of household savings and firm investment, as well as theories of capital accumulation, economic growth, expectation formation, and speculative bubbles. Additional topics include fiscal sustainability, the debate on Ricardian equivalence, and the main empirical regularities observed in industrialized economies. Emphasis is placed on understanding how long-run mechanisms differ from short-run mechanisms.

Skills
By the end of the course, students will be able to:
(a) understand and critically evaluate macro-dynamic models used in long-term analysis;
(b) apply these models, together with the relevant mathematical tools, to provide precise answers to questions concerning the functioning of the economy as a whole.

Competencies
Students will develop the ability to independently use modeling tools to identify dynamic mechanisms in economic development and to analyze the effects of structural policies. These competencies, when combined with master’s-level coursework, provide a solid foundation for pursuing careers in economic analysis and forecasting within labor market organizations, firms (e.g. in the financial sector), or public institutions.