This course is not available as an outside option to students on other programmes. This course uses controlled access as part of the course selection process. For information on controlled access courses, including eligibility, application processes, deadlines, and departmental contact details, please refer to the Controlled Access Courses webpage.

New course for the 2027/28 academic session.

How to apply: This course is intended for MSc Econometrics and Mathematical Economics students only. It is not available as an outside option.

Deadline for application: Please apply as soon as possible after the opening of course selection for all courses.

For queries contact: Econ.msc@lse.ac.uk

Pre-requisites:

Students must have completed EC451 before taking this course.

This course provides a broad introduction to graduate macroeconomic principles, covering both the long and the short run, with view to preparation for further graduate study in the field.

It covers empirical findings and modern macroeconomic models used to analyse key questions related to economic growth and business. Topics are likely to include:

• Dynamic optimization in discrete time;
• The neoclassical growth model;
• The definition and characterisation of dynamic competitive equilibria;
• Partial equilibrium consumption-savings problems;
• Aiyagari-Huggett-Bewley models;
• Facts and time-series analysis of the business cycle;
• The Real Business Cycles (RBC) model and solution methods for stochastic linear models;
• The New Keynesian model, including with unemployment;
• Household heterogeneity and the New Keynesian model (HANK).

20 hours of lectures and 9 hours of seminars in the Autumn Term.

This course has a reading week in Week 6 of Autumn Term.

Students are assigned problem sets, two of which will be marked and feedback provided. These problem sets focus on key elements of the lectures but also promote creativity and critical thinking by going beyond material explicitly discussed in the lectures.

Some problem sets may consist of computer and data assignments, for which students would be taught some basic programming and data analysis skills. Problem sets are discussed in weekly classes.

A reading list will be provided to students at the start of term.

Exam (85%), duration: 120 minutes, reading time: 15 minutes in the January exam period.

Continuous assessment (15%).

This course is IRDAP-enabled, meaning that resit and deferred assessments will take place in August at the end of the academic year.