Econ 219: Intermediate Macroeconomics

Welcome to this web page! This class is usually taught in several sections, and this page is relevant for section 3 taught by Christian Zimmermann. This section meets on Tuesdays and Thursdays 9:30 AM to 10:45 AM in Monteith 319.

Office hours for this class are Wednesdays 8:00 AM to 12:00 PM, or by appointment.

Textbook

This class will use the following textbook: Macroeconomics, by Steve Williamson. It should be available at the UConn Bookstore (Co-op). Each new book comes with a code that allows you to register on the publisher web site and enjoy some supplementary material, such as the study guide (which I will encourage you to use), Conference Board data and PowerPoint files. We may use Conference Board data (or some other data). I will not use PowerPoint. Those who have a used textbook may not be able to log into the website, as the codes expire after a session (when used).

A second edition of the book is now available. You may still use the first edition without much loss. The study guide is not available online anymore, but you may find a copy from previous students. The second edition has some added material that is covered by supplementary material that you can download in the schedule below.

We will not cover every chapter of the textbook, and I will cover some material not covered in the textbook. Supplementary material along with links to more on certain topics on the web are provided below.

Schedule

This is a tentative schedule and I will amend it as we progress. The recommended exercices are from the study guide (C=Chapter, S=Short answer question, G=Graphical/numerical question).

And to help you follow the class, the list of symbols used.

Textbook pages Recommended Exercices

Date Topic Ed. 1 Ed. 2 Ed. 1 Ed .2

1 30 Aug Course Introduction

2 1 Sep Macroeconomic measurement I 39-63 37-56 C2: S1-6, S8-9, S12, G1-2 C2:S1-4, S6-9, S12-14, G1-2

3 6 Sep Dealing with business cycle data 65-75, notes 1-11 63-74, notes 1-11

4 8 Sep Business cycle facts I 75-83, notes 12-21 74-84, notes 12-21 C3: S1-3 C3: S1-3

5 13 Sep Quiz 1, Business cycles facts II, Data problem handed out notes 12-21 notes 12-21

6 15 Sep Household decisions I 89-103 91-104 C4: S1-2, G1-2, G6 C4: S1-2, G1-2, G6

20 Sep No class

7 22 Sep Household decisions II, Firm decisions I 103-120 104-120 C4: S3, G3-4 C4: S3, G3-4

8 27 Sep Quiz 2, Firm decisions I, A first macroeconomic model: statics I 120-126, 131-134 120-126, 133-136 C4: S5, G5 C4: S5, G5. G7-8

9 29 Sep Data problem due, Review session

10 4 Oct Mid-term I Material: all until class 8 Material: all until class 8

11 6 Oct A first macroeconomic model: statics II 134-149 136-151 C5: S2-5, S7, S10-12, G3 C5: S2-5, S7, S10-13, G3

12 11 Oct Bringing some dynamics: consumption and savings 165-192 235-265 C6: S1-2, S4-6, G1, G3 C8: S1-2, S4-6, G1, G4

13 13 Oct Quiz 3, Bringing some dynamics: Ricardian equivalence 192-204 265-274 C6: S8-9, G4 C8: S8-9, G6

14 18 Oct Bringing some dynamics: investment and interest rates 215-235 293-314

15 20 Oct No class

16 25 Oct Quiz 4, Bringing some dynamics: market equilibrium I 235-249 314-327 C7: S1-4, G1 C9: S1-4, G1

17 27 Oct Bringing some dynamics: policy; Growth introduction 249-259 327-338 C7: S7-9, G2 C9: S8-10, G2

18 1 Nov Growth: the Maltusian model notes 1-8 174-185 C6: S10-14, G3

19 3 Nov Growth: modern stylized facts notes 8-12 168-174, notes 8-12 C6: S1

20 8 Nov Growth: Growth accounting, the Solow model 265-280 185-191, 200-205 C8: S3-7 C6: S3-7

9 Nov Review session, Monteith 311, 2pm

21 10 Nov Mid-term II Material: classes 11-19 Material: classes 11-19

22 15 Nov Growth: Solow revisited, Golden Rules 280-297 191-200, 214-219 C8: G1-2 C6: S15, S17, S20-21, G1-2

23 17 Nov Engogenous growth: a survey 297-309 220-231 C8: S9-10 C7: S5-9, S12-13

24 29 Nov Quiz 5, Money: what it is 317-323, 513-520 349-354, 536-542 C9: S1, C14: S1-4 C10: S1, C15: S1-4

25 1 Dec Money: what it does I, Extra-credit problem handed out, Teacher evaluation 323-339 354-363 C9: G1, S2-4 C10: G1, S2-3

26 6 Dec Money: what it does II 339-343, 352-357 363-373 C9: S5-6 C10:S4

27 8 Dec Quiz 6, Extra-credit problem due, Money: what it does III 343-363 543-550, 375-378 C9: S7-8 C10: S5-6

14 Dec, 10:00 Review session, Monteith 311

15 Dec, 10:30 Final exam Material: all of the above with strong emphasis on classes 22-27 Material: all of the above with strong emphasis on classes 22-27

Grades...

There will be two "mid-terms" and a final exam. Each will last a full class. I will also sprinkle a certain number of quizzes here and there, both to entice you to work without delay and to allow me to check whether we are on the right track. The formula will be:

15/30% mid-term 1
15/30% mid-term 2
15/30% final exam
16% quizzes (four best of six)
9% data project

15/30% means that the lowest of the mid-terms and final will count for 15%, the two others for 30%. A 5% extra-credit project will also be offered towards the end of the term. A word about grades. When I grade, the average is usually around 60%. This allows me to reward better those who do well. Do not be too alarmed when you get a grade that is lower than those you get in other classes. But if it is really low, you should do something about it...

There are past exams available on the Spring 2003 page, the Fall 2003 page, the Spring 2004 page and the Fall 2004 page. More are on the Fall 2002 page, but this class followed somewhat different schedule and/or material. If I encourage you to do particular exercices, keep in mind that I may ask similar questions.

Mailing list

Students registered for this class receive regular emails with various updates about the material covered and about grading. Be sure to give me a valid email address that you regularly use.

Supplementary material and links

Classified by chapter, not necessarily by the order we cover the topics in class.

1. Introduction
2. Measurement: Gross Domestic Product, Prices, Savings, and Wealth.: Data sources
Statistical offices around the world.
The Boskin Report
3. Measurement: Business Cycles.: The Hodrick-Prescott filter, various codes for various softwares, in particular a web interface.
The article that first used the Hodrick-Prescott filter. Published two decades after its writing...
US business cycle dates, as determined by the NBER.
An article on stylized facts for US business cycles.
A working paper with stylized facts for many countries.
An article on the robustness of business cycles facts through time, in particular the comovement between output and prices.
4. Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization.
5. A Closed-Economy One-Period Macroeconomic Model.
6. A Two-Period Model: The Consumption-Savings Decision and Ricardian Equivalence.
MyRichUncle.com
7. Investment and the Determination of Aggregate Output, the Real Interest Rate, and Employment.
8. Economic Growth.: Economic Growth Resources
Malthus' Essay on the Principle of Population.
The Penn World Tables.
An interactive tutorial for the Solow growth model (bad link, try this)
Robert Solow
Simon Kuznets
Paul Romer
9. A Model of a Monetary Economy: Money Neutrality, Long-Run Inflation, and Money Demand.
Canadian Tire Money
Milton Friedman
10. Keynesian Business Cycle Theory: The Sticky Wage Model.
11. Market-Clearing Models of the Business Cycle.: The QM&RBC home page, with lots of material on RBC theory.
The article that started RBC theory.
A criticism of RBC theory by Gregory Mankiw.
A response by Charles Plosser
A criticism of the representative agent construct.
A response by Charles Plosser.
Finn Kydland
Edward Prescott
12. Trade in Goods and Assets.
13. Money in the Open Economy.
14. Money, Banking, and Central Banking.: Central banks around the world.
15. Unemployment: Search and Efficiency Wages.
16. Inflation, the Phillips Curve, and Central Bank Commitment.

To contact me: Phone: 6-3272, Email: christian.zimmermann@uconn.edu

			Textbook pages		Recommended Exercices
	Date	Topic	Ed. 1	Ed. 2	Ed. 1	Ed .2
1	30 Aug	Course Introduction
2	1 Sep	Macroeconomic measurement I	39-63	37-56	C2: S1-6, S8-9, S12, G1-2	C2:S1-4, S6-9, S12-14, G1-2
3	6 Sep	Dealing with business cycle data	65-75, notes 1-11	63-74, notes 1-11
4	8 Sep	Business cycle facts I	75-83, notes 12-21	74-84, notes 12-21	C3: S1-3	C3: S1-3
5	13 Sep	Quiz 1, Business cycles facts II, Data problem handed out	notes 12-21	notes 12-21
6	15 Sep	Household decisions I	89-103	91-104	C4: S1-2, G1-2, G6	C4: S1-2, G1-2, G6
	20 Sep	No class
7	22 Sep	Household decisions II, Firm decisions I	103-120	104-120	C4: S3, G3-4	C4: S3, G3-4
8	27 Sep	Quiz 2, Firm decisions I, A first macroeconomic model: statics I	120-126, 131-134	120-126, 133-136	C4: S5, G5	C4: S5, G5. G7-8
9	29 Sep	Data problem due, Review session
10	4 Oct	Mid-term I	Material: all until class 8	Material: all until class 8
11	6 Oct	A first macroeconomic model: statics II	134-149	136-151	C5: S2-5, S7, S10-12, G3	C5: S2-5, S7, S10-13, G3
12	11 Oct	Bringing some dynamics: consumption and savings	165-192	235-265	C6: S1-2, S4-6, G1, G3	C8: S1-2, S4-6, G1, G4
13	13 Oct	Quiz 3, Bringing some dynamics: Ricardian equivalence	192-204	265-274	C6: S8-9, G4	C8: S8-9, G6
14	18 Oct	Bringing some dynamics: investment and interest rates	215-235	293-314
15	20 Oct	No class
16	25 Oct	Quiz 4, Bringing some dynamics: market equilibrium I	235-249	314-327	C7: S1-4, G1	C9: S1-4, G1
17	27 Oct	Bringing some dynamics: policy; Growth introduction	249-259	327-338	C7: S7-9, G2	C9: S8-10, G2
18	1 Nov	Growth: the Maltusian model	notes 1-8	174-185		C6: S10-14, G3
19	3 Nov	Growth: modern stylized facts	notes 8-12	168-174, notes 8-12		C6: S1
20	8 Nov	Growth: Growth accounting, the Solow model	265-280	185-191, 200-205	C8: S3-7	C6: S3-7
	9 Nov	Review session, Monteith 311, 2pm
21	10 Nov	Mid-term II	Material: classes 11-19	Material: classes 11-19
22	15 Nov	Growth: Solow revisited, Golden Rules	280-297	191-200, 214-219	C8: G1-2	C6: S15, S17, S20-21, G1-2
23	17 Nov	Engogenous growth: a survey	297-309	220-231	C8: S9-10	C7: S5-9, S12-13
24	29 Nov	Quiz 5, Money: what it is	317-323, 513-520	349-354, 536-542	C9: S1, C14: S1-4	C10: S1, C15: S1-4
25	1 Dec	Money: what it does I, Extra-credit problem handed out, Teacher evaluation	323-339	354-363	C9: G1, S2-4	C10: G1, S2-3
26	6 Dec	Money: what it does II	339-343, 352-357	363-373	C9: S5-6	C10:S4
27	8 Dec	Quiz 6, Extra-credit problem due, Money: what it does III	343-363	543-550, 375-378	C9: S7-8	C10: S5-6
	14 Dec, 10:00	Review session, Monteith 311
	15 Dec, 10:30	Final exam	Material: all of the above with strong emphasis on classes 22-27	Material: all of the above with strong emphasis on classes 22-27