This is a course in the tools of modern macroeconomics. The emphasis will be on theory to help tune your intuition, and provide different lenses to interpret the macro-economy.
- Instructor: [email protected]
- Prerequisites: A score of 68% or higher in ECON 305
- Credits: 3
- Textbook: None. I will post my notes online (modifications of notes graciously provided by Thomas J. Sargent)
- TA and Office Hours: Posted on Canvas
All materials will be provided online:
- Class Materials: https://github.com/jlperla/ECON307
- Communications, Announcements, and Grades: http://canvas.ubc.ca
This material is best learned by doing exercises. When appropriate, we will review some of the problem set answers in class.
- Approximately 6 problem sets: 20% (total)
- Midterm: 30%
- Final Exam: 50%
Assume that all grades will be curved (weakly up for exams).
Exams are long but fair. You will be allowed a cheat-sheet.
Assignments are to be submitted electronically through whatever method the TA establishes.
Missed Exam Policy: You are responsible for ensuring that you take these exams as scheduled; no make-up exams will be given.
- Missing a midterm for ANY acceptable reason will result in its weight being automatically transferred to the final exam.
- The final exam date will be announced by Student Services about half-way through the term.
- There is no make-up final. Travel plans and/or cheap tickets are not a reason to miss the final. If you have a medical or other compelling reason why you cannot take the final exam at its scheduled time you must follow the formal process and get an Academic Concession from your Faculty Advising Office (see below)
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Introduction and Tools
- Why models? Why math?
- Building to a full model of the macro economy
- Difference equations, functional equations, and "guess-and-verify"
- Probability and stochastic processes
- Constrained optimization
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Practice thinking dynamic and recursive
- Basic asset pricing example
- Present value and infinite geometric sums
- Linear state space models
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Consumption and Savings Decisions
- Permanent income and rational expectations
- Consumption growth and future income
- Stochastic versions of the permanent income model
- Ricardian equivalence
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Expectations
- Rational vs. adaptive expectations and ``rational bubbles'' (maybe)
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Unemployment and Search
- The ``Lake Model''
- Markov chains and long-run unemployment rates
- Models of job search
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General Equilibrium
- Endogenizing wages and other prices
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Interest Rates and Complete Markets
- Theory of interest rates
- Lucas Model in an endowment economy
- Event trees and Arrow-Debreu complete markets model (maybe)
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Growth and Fiscal Policy
- Optimal growth and capital accumulation
- Distorting taxes on capital, labor, and consumption
- Government policy and budgets
- Foreseen and unforeseen policy changes
Sometimes, things happen during the course of a semester that can affect your ability to succeed. There are three main categories:
- Medical – i.e. you got sick and missed class or a chronic illness got worse
- Compassionate – i.e. a friend or close relative had something bad happen to them, or something bad happened to you.
- Conflicting Responsibilities – i.e. something happened in your personal life which is affecting your ability to do the work, like childcare falling through You can read more about specific examples and the whole policy at: http://www.calendar.ubc.ca/vancouver/index.cfm?tree=3,48,0,0
In all of these cases, UBC’s policy is to allow you to request an academic concession. Our policy is that all requests for academic concession on exams should be handled through your faculty Advising office (unless your office advises otherwise). This is so that we can centrally track requests for concession and ensure they are fairly administered; it also helps protect your privacy. You can find the procedure here, for Arts:
https://students.arts.ubc.ca/advising/academic-performance/help-academic-concession/
If you need a concession, you should immediately speak to Advising, who will follow-up with the instructor to handle the academic side of things. In-term concessions, which handle things like missed assignments or deadlines, are handled usually by extending the deadline or adjusting the final grading of the course (e.g. omitting an assessment). Alternative forms of assessment may also be used if suitable and recommended by Advising. • Concessions need to be made in a timely fashion, which I will define as “within 2 weeks of the missed assessment” unless this is not reasonable. You are also welcome to speak to the instructor regarding your issue; I’m here to support you and help you get through things and be successful. If you’re not sure if it’s something you should/could get a concession for, I can also give you a quick sense of what Advising will likely suggest if you’re unable to make an appointment immediately.
UBC provides resources to support student learning and to maintain healthy lifestyles but recognizes that sometimes crises arise and so there are additional resources to access including those for survivors of sexual violence. UBC values respect for the person and ideas of all members of the academic community. Harassment and discrimination are not tolerated nor is suppression of academic freedom. UBC provides appropriate accommodation for students with disabilities and for religious, spiritual and cultural observances. UBC values academic honesty and students are expected to acknowledge the ideas generated by others and to uphold the highest academic standards in all of their actions. Details of the policies and how to access support are available here: https://senate.ubc.ca/policies-resources-support-student-success/.
All the materials provided to you as part of this course are protected by copyright. All assignment instructions, quiz questions and answers, discussion questions, announcements, lecture slides, audio/video recordings, Canvas modules, and any other materials provided to you by your instructor or in the textbook are for use only by students enrolled in this course this term. Sharing any of these materials beyond this course, including by posting on file-sharing websites (e.g., CourseHero, Google Docs) is a violation of copyright law and an academic offence. Copying and pasting sentences from the lecture notes or the textbook (e.g., definitions) into for-profit software (e.g., Quizlet) is likewise a violation of copyright law, and an academic offence. Violations of this policy will be treated according to the provisos of the Code of Student Conduct. For further information about copyright law, please refer to (https://copyright.ubc.ca/students/).
It is the policy of the Vancouver School of Economics to report all violations of UBC’s standards for academic integrity to the office of the Dean of Arts. All violations of academic integrity standards will result in a grade of zero on the relevant assessment (exam, paper, assignment etc.). Students who do not have a previous offence may have the option to enter into a diversionary process with the Dean of Arts to resolve their misconduct (https://academicintegrity.ubc.ca/diversionary-process/). Any student who has a previous academic offence will be referred to the President’s Advisory Committee on Student Discipline (PACSD) (https://universitycounsel.ubc.ca/homepage/guides-and-resources/discipline/). PACSD may impose additional penalties including: a transcript notation indicating that the student has committed an academic offence, zero in the course, and/or suspension or expulsion from the University. You are personally responsible for understanding and following the UBC’s policies for academic integrity: https://vancouver.calendar.ubc.ca/campus-wide-policies-and-regulations/academic-honesty-and-standards. A Canvas module has been made available you for this purpose titled “Avoiding Academic Misconduct”. It is your responsibility to read the materials in that module before submitting any work in this course. Speak to your instructor if you have any questions regarding the standard for academic integrity at UBC and/or the VSE polices on academic misconduct.
There are only three acceptable grounds for academic concessions at UBC: unexpected changes in personal responsibilities that create a schedule conflict; medical circumstances; and compassionate grounds when the student experiences a traumatic event, sexual assault, or death in the family or of a close friend. Academic concessions for graded work and exams are granted for work that will be missed due to unexpected situations or circumstances. Situations that are expected (such as time constraints due to workload in other courses) or are predictable (such as being scheduled for paid work) are not grounds for academic concession.
Requests for academic concessions should be made before the due date for that graded work and/or the writing of the exam. UBC policy does not allow for concessions to students who have missed work because they have registered for a course after the due date for that work. You can read more about the rules for academic concessions here: https://students.ubc.ca/enrolment/academic-learning-resources/academic-concessions. Students in the Faculty of Arts who require a concession can apply for concessions using this form here: https://students.air.arts.ubc.ca/academic-concession-form/. Students in other Faculties should consult their faculty website on academic concessions. Please note that the role of the faculty advising office is to review the evidence and to either support or not support concession requests. The final decision to grant the request always rests with your instructor.
The specific rules for the use of AI tools are at the discretion of the course instructor. Those rules might change over the course of the term as new technologies become available. Changes to those rules might change the content of assessments and the way that your work is evaluated. If no written instructions on the use of AI tools have been provided by the instructor, the use of all AI tools is strictly prohibited in the course. Where the written instructions permit the use of AI tools, that usage must be documented and attributed within your assessment(s). Students are responsible for all factual inaccuracies that are created by the use of AI tools. Please speak to your instructor if you have further questions about the ways in which AI technology use is permitted in this course.
The Vancouver School of Economics expressly prohibits any student from hiring a tutor and/or editor to assist with any portion of written work or academic research. If at any point you feel in need of additional writing support, please speak with your instructor and/or arrange for a writing consultation with UBC’s Centre for Writing and Scholarly Communication (https://writing.library.ubc.ca/). Additionally, you have access to research support through the UBC Library: https://guides.library.ubc.ca/econ and https://guides.library.ubc.ca/econ490.
Any student who hires a tutor and/or editor to assist with any portion of written work or academic research will be given a zero on that component of the course and will be reported to the Dean’s office for academic misconduct (please see Policy on Academic Honesty).