Macroéconomie 1 (EN)

Objectif

This course introduces the fundamental concepts of macroeconomic models with microeconomic foundations. It addresses two main themes, the theories of growth and the effects of fiscal policy, through continuous-time models with a representative agent or overlapping generations. It pays a particular attention to normative questions concerning the Pareto efficiency of the market equilibrium and the role of economic policies.

Course evaluation : 2/3 final exam + 1/3 (mid-term + attendance & participation).

Plan

Part I: Exogenous growth theories
Chapter 1: The growth model with an exogenous saving rate (Solow-Swan)
Chapter 2: The growth model with an endogenous saving rate (Cass-Koopmans-Ramsey)
Chapter 3: The DICE model (Nordhaus)

Part II: Endogenous growth theories
Chapter 4: The growth model with learning by doing (Romer, 1986)
Chapter 5: The growth model with a variety of goods (Romer, 1990)

Part III: Effects of fiscal policy
Chapter 6: Fiscal policy in the representative-agent model (Cass-Koopmans-Ramsey)
Chapter 7: Fiscal policy in the overlapping-generations model (Weil)

General conclusion

Références

Main references
Barro, R.J., and Sala-i-Martin, X., 2004, “Economic Growth,” second edition, MIT Press
Heijdra, B.J., and Van der Ploeg, F., 2002, “Foundations of Modern Macroeconomics,” Oxford University Press
Romer, D., 2011, “Advanced Macroeconomics,” fourth edition, McGraw-Hill