Advanced Macroeconomics

This information is for the 2020/21 session.

Teacher responsible

Prof Benjamin Moll 32L.1.19

Dr Maarten De Ridder 32L.1.24


This course is compulsory on the MSc in Econometrics and Mathematical Economics. This course is not available as an outside option.


Students must have completed Introductory Course for MSc EME (EC451).

Course content

Course objectives and main course elements:

1. The course will teach you the concepts used in empirical and theoretical macroeconomics.

2. The course will teach you the main empirical business cycle characteristics of developed economies and the main empirical findings regarding the growth of developed and less developed nations.

3. This course teaches you the main techniques used to analyse modern macroeconomics models. In particular, the course will focus on techniques such as dynamic programming, value function iteration, and the linearization of first-order conditions.

4. This course teaches you (prototype versions of) macroeconomic models used to analyse key questions related to business cycles and economic growth. Examples are New Keynesian models, Real Business Cycle models, Overlapping Generations models, the Solow growth model, and first-generation endogenous growth models.

5. The course will also discuss some more advanced models that have recently been developed to explain recent economic events, including models with heterogeneous agents, financial frictions and labour market frictions.


20 hours of lectures and 10 hours of seminars in the MT. 20 hours of lectures and 10 hours of seminars in the LT.

Some of the problem will sets will consist of computer and data assignments and students will be taught some basic programming and data analysis skills.

This year, at least for MT, some of this teaching may have to be delivered through a combination of virtual webinars, online videos, and virtual classes.

Formative coursework

Students are assigned problem sets. These problem sets focus on key elements of the lectures, but they will also promote creativity and critical thinking by going beyond the material explicitly discussed in the lectures. There will also be computer assignments. The problem sets will be discussed by the class teachers.

Indicative reading

  • Acemoglu, Daron, 2009, Introduction to Modern Economic Growth.
  • Ljungqvist, Lars and Thomas J. Sargent, 2012, Recursive Macroeconomic Theory.
  • Stokey, Nancy L. and Robert E. Lucas Jr., 1989, Recursive Methods in Economic Dynamics.


Exam (50%, duration: 2 hours, reading time: 15 minutes) in the summer exam period.
Exam (50%, duration: 2 hours) in the January exam period.

Important information in response to COVID-19

Please note that during 2020/21 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the situation of students in attendance on campus and those studying online during the early part of the academic year. For assessment, this may involve changes to mode of delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.

Key facts

Department: Economics

Total students 2019/20: 41

Average class size 2019/20: 14

Controlled access 2019/20: Yes

Value: One Unit

Guidelines for interpreting course guide information

Personal development skills

  • Self-management
  • Team working
  • Problem solving
  • Application of information skills
  • Application of numeracy skills
  • Specialist skills