Macroeconomics for MRes students

This information is for the 2020/21 session.

Teacher responsible

Prof Per Krusell TBA, Prof Benjamin Moll 32L.1.19, Dr Ethan Ilzetzki 32L.1.11 and Prof Ricardo Reis 32L.1.27


This course is compulsory on the MRes/PhD in Economics and MRes/PhD in Finance. This course is not available as an outside option.

Course content

The course will cover topics in advanced macroeconomics with emphasis on fundamentals and applications to recent theoretical advances:

i. Economic growth: Neoclassical Growth Model, Optimizing Behaviour in dynamic models under certainty, Endogenous Technological Change, Imitation and Convergence, Growth and Development Accounting, Appropriate Technology.

ii. Search and Matching: The Matching Model, Efficiency Wages, Growth and Unemployment.

iii. Dynamic Stochastic General Equilibrium Models : Real Business Cycles, applications to models of heterogeneous agents and open economy. Fiscal policy analysis.

iv. Monetary Economics: models with credit frictions, sticky prices, search.


30 hours of lectures and 15 hours of classes in the MT. 30 hours of lectures and 15 hours of classes in the LT.

This year, at least for Michaelmas term, some or all of the lectures and classes may have to be delivered through a combination of virtual webinars, online videos and virtual classes.  Attendance at lectures and classes is compulsory.

Formative coursework

Compulsory exercises are set for each class.

Indicative reading

A good general textbook that is mostly below the level of the course is:

D Romer, Advanced Macroeconomics, McGraw-Hill Advanced Series in Economics, New York, 1996.

For the growth part the main references are the textbooks by:

D. Acemoglu, Introduction to Modern Economic Growth, Princeton University Press, 2009; R J Barro & X Sala-i-Martin, Economic Growth, McGraw-Hill, 1997.

Other useful texts include:

L Ljungqvist & T Sargent, Recursive Macroeconomic Theory, MIT Press, 2000; N Stokey & R E Lucas, Recursive Methods in Economic Dynamics, Harvard University Press, 1989.

More economic applications, with some required readings can be found in:

M Obstfeld & K Rogoff, Foundations of International Macroeconomics, MIT Press, 2000; P Aghion & P Howitt, Endogenous Growth Theory, MIT Press 1998; C A Pissarides, Equilibrium Unemployment Theory, MIT Press 2000.

References for recent theoretical advances published in the journals will be given during the course.


Exam (75%, duration: 3 hours, reading time: 15 minutes) in the summer exam period.
Problem sets (25%) in the MT and LT.

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: 31

Average class size 2019/20: 15

Controlled access 2019/20: Yes

Value: One Unit

Guidelines for interpreting course guide information