マクロ経済学Ⅰ

1. A simple general equilibrium model with aggregation and representation (a) A basic recursive formulation (b) Aggregate demand and supply curves (c) An economy with a representative agent 2. The Ramsey–Cass–Koopmans model (a) HJB equation (b) Hamiltonian (c) A simple optimal control theory (d) Transversality condition 3. A model of investment with adjustment costs (a) Convex adjustment cost (b) Q-theory (c) Investment dynamics 4. A simple real business cycle (RBC) model (a) Stylized facts (b) TFP fluctuation (c) Criticism (d) Simple computational methods 5. A small-scale New Keynesian (NK) model (a) Monopolistic competition (b) Sticky price (c) Monetary policy (d) Log-linearization (e) Criticism 6. The Kiyotaki-Wright model: Monetary equilibria (a) A random search and match model (b) Endogenous money demand as a medium of exchange (cf. Cash-in- advance economy) (c) Multiple equilibria 7. A model with directed search and Hosios condition (Moen, 1997; Hosios, 1990) (a) A directed search model with socially optimal equilibrium allocations (b) Hosios condition *We will skim through the classic random search results in the (Diamond-)Mortensen-Pissarides model for comparison, but the details of the DMP model are to be covered by Graduate Macroeconomics II.

Lectures on basic theories

Homework (no grading) – 4 sets of homework will be assigned throughout the course. – Teaching assistants will hold recitations (TA sessions) to help you solve the homework. Mid-term (30%) + Final (70%) – Most of the questions will be closely related to the homework. – Those who cannot take the exam at the designated time should report at least by June 27 with a valid reason and a supporting document.

Romer, D. (2019): Advanced Macroeconomics, McGraw Hill, 5th ed.

Hayashi, F. (1982): “Tobin’s Marginal q and Average q: A Neoclassical Interpretation,” Econometrica, 50, 213. Hosios, A. J. (1990): “On the Efficiency of Matching and Related Models of Search and Unemployment,” The Review of Economic Studies, 57, 279. Kiyotaki, N. and R. Wright (1989): “On Money as a Medium of Ex-change,” Journal of Political Economy, 97, 927–954. Moen, E. (1997): “Competitive Search Equilibrium,” Journal of Political Economy, 105, 385–411.

Pre-requisite - First-year math camp materials. Auditing - Permission is needed from the instructor to sit in on the class. Auditing students are required to attend all the classes, do homework, and take the exams.

Teaching assistants: (*****) – Kao Nomura – Hiroyuki Asai TA office hours: Please send an email at least by the prior week’s Friday for the appointment. The TA office hours are automatically canceled in a week without any prior email request. – Hiroyuki Asai: Mon, 9:00 am - 10:00 am – Kao Nomura: Wed, 10:30 am - 11:30 am TA session: Wed, 3rd period: 13:00 am - 14:45 am