ECON 573 | Course Introduction and Application Information

Course Name
Macroeconomic Theory 1
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
ECON 573
Fall/Spring
3
0
3
7.5

Prerequisites
None
Course Language
English
Course Type
Elective
Course Level
Second Cycle
Course Coordinator
Course Lecturer(s)
Assistant(s)
Course Objectives This course is designed to develop the theoretical building blocks and tools of dynamic macroeconomics at advanced level. The course methodologically acknowledges the microeconomic foundations of macroeconomics. As a first step, the course starts with one-period general equilibrium models. Next, various dynamic general equilibrium models are covered. The course endows the student with nuances including continuous versus discrete time, infinite versus finite time, deterministic versus stochastic modeling, market versus social planner’s solution, differential equation versus difference equation.
Course Description The students who succeeded in this course;
  • To learn macroeconomic modeling through using advanced macroeconomic theories and concepts.
  • To make policy analysis through macroeconomic modeling in a theoretical context.
  • To use macroeconomics knowledge at advanced level and to comment on actual (practical) macroeconomic issues by using this advanced framework.
  • To analyze new and complex ideas in macroeconomics critically.
  • To compare and contrast results of different macroeconomic frameworks.
Course Content The course begins by introducing to students the one period general equilibrium models. Next, two period partial and general equilibrium macroeconomic modeling is developed. Finally, deterministic dynamic general equilibrium modeling is studied through reviewing economic growth literature. In that scope, difference equations, differential equations and optimal control theory are covered in the course at sufficient detail.

 



Course Category

Core Courses
Major Area Courses
Supportive Courses
Media and Management Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Related Preparation
1 One period General equilibrium Chapter 1 in HY
2 One period General equilibrium Chapter 1 in HY
3 One period General equilibrium Chapter 1 in HY
4 Introduction to Dynamic Macroeconomics Chapter 2 in HY
5 Introduction to Dynamic Macroeconomics Chapter 2 in HY
6 Neo-classical growth theory Chapter 1 in BSM
7 Neo-classical growth theory Chapter 2 in BSM
8 Neo-classical growth theory Chapter 2 in BSM
9 Midterm
10 Project
11 Project
12 Project
13 Project
14 Project
15 Review of the Semester  
16 Review of the Semester  

 

Course Notes/Textbooks

Barro, R.J. & X. Sala-i-Martin (2012) Economic Growth, ISBN-13: 978-8120325517

Hakan Yetkiner (HY1), Advanced Macroeconomics, unpublished manuscript

Suggested Readings/Materials

Wickens, M. (2012) Macroeconomic Theory: A Dynamic General Equilibrium Approach, ISBN-13: 978-0691152868

 

EVALUATION SYSTEM

Semester Activities Number Weigthing
Participation
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Homework / Assignments
Presentation / Jury
Project
1
60
Seminar / Workshop
Oral Exams
Midterm
1
40
Final Exam
Total

Weighting of Semester Activities on the Final Grade
2
100
Weighting of End-of-Semester Activities on the Final Grade
Total

ECTS / WORKLOAD TABLE

Semester Activities Number Duration (Hours) Workload
Theoretical Course Hours
(Including exam week: 16 x total hours)
16
3
48
Laboratory / Application Hours
(Including exam week: 16 x total hours)
16
Study Hours Out of Class
16
6
Field Work
Quizzes / Studio Critiques
Homework / Assignments
Presentation / Jury
Project
1
20
Seminar / Workshop
Oral Exam
Midterms
1
20
Final Exam
    Total
184

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Competencies/Outcomes
* Contribution Level
1
2
3
4
5
1

To improve and deepen actual and advanced level knowledge in economics in the level of expertise by inventive thoughts and/or research and to get inventive contributions to science.

X
2

To comprehend the interaction between economics and related fields; to achieve inventive results by using knowledge requiring expertise in analysis, synthesis and evaluation of new and complex ideas.

X
3

To be able to apply the advanced level knowledge acquired in economics and finance.

X
4

Creating new knowledge by combining the knowledge of financial economics with the knowledge coming from other disciplines and also be able to solve problems which requires expert knowledge by applying scientific methods.

X
5

To be able to critically evaluate the knowledge in financial economics, to lead learning and carry out advanced level research independently.

X
6

Being able to use a foreign language for both following scientific progress and for written and oral communication.

X
7

To be able to develop new strategic approaches for unexpected, complicated situations in financial economics and take responsibility in solving it.

X
8

To be able to use computer programs needed in the field financial economics as well as information and communication technologies in advanced levels.

9

To possess the communication network to put the economic and social needs of the region of residence on the agenda.

X
10

To have adequate social responsibility and conciousness about the needs of society and to have the experience and authority  to organize and support the operations that can affect and drive  the social dynamics when necessary.

X
11

To be able to think analytically to identify problems in financial economics and to be able to make policy recommendations in economics and finance based on scientific analysis of issues and problems.

12

To protect the social, scientific and ethical values at the data collection, interpretation and dissemination stages and to be able to introduce and supervise these values.

13

To be able to use the skills of modeling, empirical analysis and formulating policy options that are developed for financial economics, in interdisciplinary contexts.

X

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest