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.

Additional requisites:

EC451 takes place prior to the start of Autumn Term, please contact econ.msc@lse.ac.uk for more information.

This course builds on EC4B2 Macroeconomics for MSc EME, through a combination of advanced skills and topics that have been at the core of macroeconomic research over the past decade.

Topics are likely to include:

• Dynamic optimization in continuous time;
• Transition dynamics in the neoclassical growth model;
• The neoclassical growth model’s fit for cross country facts on income and growth;
• Sustained growth in the neoclassical growth model;
• The Hopenhayn model of heterogeneous firms;
• Firm heterogeneity and the business cycle; production networks using Hulten’s theorem and Gabaix granular shocks;
• Joint analysis of the business cycle and long-run economic growth;
• Recent deviations from the Kaldor facts (endogenous labour share, markups;
• The macroeconomics of climate;
• The macroeconomics of artificial intelligence.

20 hours of lectures and 9 hours of seminars in the Winter Term.
1 hour of seminars in the Spring Term.

This course has a reading week in Week 6 of Winter 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 Spring 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.