University of Glasgow
Area of Study
Taught In English
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits4
Recommended U.S. Quarter Units1
Hours & Credits
With the ultimate aim of understanding the causes and consequences of fluctuations in macroeconomic activity, this course sets out the micro-foundations of modern macroeconomic theory by analyzing the optimizing choices of households, firms and the government in the markets for goods, labour, capital and public bonds. This is achieved in a general equilibrium framework by examining the interaction in all markets simultaneously.
The aims of this course are to:
- Understand the causes and consequences of fluctuations in macroeconomic activity using a micro-founded theory which analyzes the optimizing choices of households, firms and the government in the markets for goods, labour, capital and public bonds.
- Appreciate how each market interacts such that market clearing equilibrium prices and quantities can be solved for simultaneously.
- Learn the mathematical, numerical and graphical tools to undertake the above analysis.
- Apply the theoretical and analytical tools to a variety of real world examples including: productivity policy and growth; moral hazard and unemployment benefits; economic rents and corruption; unemployment benefits as insurance; taxes and employment policy; regulation of airlines, oil and pollution; immigration waves and rural-urban migration; savings rate, permanent income and the debt crisis; capital market regulation; and policies to foster capital market trade.
Intended Learning Outcomes of Course
By the end of this course, students should be able to:
- Specify the behaviour of households, firms and the public sector in the key markets comprising modern general equilibrium macroeconomic models.
- Model both representative and heterogeneous households based on their preferences, constraints and endowments.
- Model the representative firm based on its profit motives and technological constraints.
- Solve a general equilibrium model at the steady-state taking into account the simultaneous interaction of multiple agents in multiple markets.
- Understand the motives, constraints and consequences of government policy.
- Undertake simple and constrained optimization in static framework.
- Conduct dynamic optimization using the Lagrangian and dynamic programming methods.
- Solve systems of equations analytically, graphically and numerically.
- Graph the primitive functions and optimality conditions occupying the various models studied in a spreadsheet or in a math package such as Matlab or Maple.
Courses and course hours of instruction are subject to change.
Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.
ECTS (European Credit Transfer and Accumulation System) credits are converted to semester credits/quarter units differently among U.S. universities. Students should confirm the conversion scale used at their home university when determining credit transfer.
Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.