Econ 2202: Intermediate Macroeconomics

This class is usually taught in several sections, and this page is relevant for section 1 taught by Christian Zimmermann. This section meets on Mondays, Wednesdays and Fridays 10:00-10:50 in FS 103 (Family Science Building).

Office hours for this class are Monday 1:30-4:30, or by appointment, in Monteith 318.

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. 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 (once used).

A third edition of the book is now available. You may still use the first or second editions without much loss. The second and third editions have some added material that is covered by supplementary material that you can download in the schedule below. There is a cheaper, online version of the textbook at CourseSmart.

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 book (C=Chapter, Q=Questions for review, P=Problems). Use also the study guide along with the above (S=Short answer question, G=Graphical/numerical question). The study guide has its own set of problems, with answers.

And to help you follow the class, the list of symbols used. Starting lecture 30, you may want to use this model template. The schedule is subject to changes in terms of content, dates for all evaluations are firm.

Textbook pages Recommended Exercices

Date Topic Ed. 3 Ed. 2 Ed. 3 Ed. 2

1 31 Aug Course Introduction

2 2 Sep Macroeconomic measurement I 37-59 37-56

3 4 Sep Macroeconomic measurement II 37-59 37-56 C2: Q1-5, Q7-10, Q15, P1-6, P12, S1-4, S6-9, S12-14, G1-2 C2: Q1-5, Q7-10, Q15, P1-6, S1-4, S6-9, S12-14, G1-2

4 9 Sep Dealing with business cycle data 67-76, notes 1-11 63-74, notes 1-11

5 11 Sep Business cycle facts I 76-88, notes 12-21 74-84, notes 12-21

6 14 Sep Business cycle facts II 76-88, notes 12-21 74-84, notes 12-21 C3: Q1-2, Q7, S1-3 C3: Q1-4, S1-3

7 16 Sep Quiz 1, Business cycles facts III, Data problem handed out notes 12-21 notes 12-21

8 18 Sep Household decisions I 99-112 91-104

9 20 Sep Household decisions II 99-112 91-104 C4: Q1-9, P3, P5-6, S1-2, G1-2, G6 C4: Q1-9, P3, P5-6, S1-2, G1-2, G6

10 23 Sep Firm decisions I 112-128 104-120 C4: Q10-13, P8-9, S3, G3-4 C4: Q10-13, P7-8, S3, G3-4

11 25 Sep Quiz 2, Firm decisions II, A first macroeconomic model: statics I 129-133, 139-142 122-126, 133-136 C4: Q5, P5, P8-9, S5, G5, G7-8 C4: Q5, P5, P7-8, S5, G5, G7-8

12 28 Sep A first macroeconomic model: statics II

13 30 Sep Data problem due, Review session

14 2 Oct Mid-term I Material: all until class 13 Material: all until class 13

15 5 Oct A first macroeconomic model: statics III 142-163 136-157 C5: S2-5, S7, S10-13, G2-3 C5: S2-5, S7, S10-13, G2-3

16 7 Oct Growth: the Maltusian model I 189-199 174-185

17 9 Oct Growth: the Maltusian model II, Modern stylized facts I 184-199, notes 8-12 168-185, notes 8-12 C6: Q3-5, P1-2 C6: S10-14, G3, Q3-5, P1-2

18 12 Oct Growth: modern stylized facts II 184-189, notes 8-12 168-174, notes 8-12 C6: S1, Q2 C6: S1, Q2

19 14 Oct Quiz 3. Growth: the Solow model I

20 16 Oct Growth: the Solow model II 200-212 185-198 C6: S3-7 Q6-9, P3-5 C6: S3-7, Q6-9, P3-5

21 19 Oct Growth: technology, growth accounting 213-220 199-219 C6: S15, S17, G1-2, Q15, P6, P10-11 C6: S15, S17, G1-2, Q14, P6, P9-10

22 21 Oct Endogenous growth: a survey I

23 23 Oct Engogenous growth: a survey II 236-244 220-231 C7: S5-10, S12-13, Q5-9, P4 C7: S5-10, S12-13, Q5-9, P4

24 26 Oct Quiz 4. Bringing some dynamics: consumption and savings I 253-279 237-265 C8: S1-6, G1, G4, Q1-2, Q4-11, Q13-14, P1, P3-4 C8: S1-6, G1, G4, Q1-2, Q4-11, Q13-14, P1, P3-4

25 26 Oct Bringing some dynamics: consumption and savings II 253-279 237-265 C8: S1-6, G1, G4, Q1-2, Q4-11, Q13-14, P1, P3-4 C8: S1-6, G1, G4, Q1-2, Q4-11, Q13-14, P1, P3-4

26 30 Oct Bringing some dynamics: Ricardian equivalence 279-298 265-283 C8: S8-9, G6, Q17-22, P6, P9 C8: S8-9, G6, Q17-22, P6, P9

27 2 Nov About fiscal policy

28 4 Nov Review session

29 6 Nov Mid-term II Material: classes 15-28 Material: classes 15-28

30 9 Nov Bringing some dynamics: investment and interest rates 311-335 293-315 C9: S4-6, G1, Q4-8, P1-2 C9: S4-6, G1, Q4-8, P1-2

31 11 Nov Bringing some dynamics: investment and interest rates 311-335 293-315 C9: S4-6, G1, Q4-8, P1-2 C9: S4-6, G1, Q4-8, P1-2

32 13 Nov No class!

33 16 Nov Bringing some dynamics: market equilibrium 335-346 315-327

34 18 Nov Bringing some dynamics: policy 346-352 327-333 C9: S11, Q12-16, P9-10, P12 C9: S11, Q12-16, P8-9, P11

35 20 Nov Quiz 5, Fiscal policy

36 30 Nov Money: what it is, Extra-credit problem handed out, Teacher evaluation 363-368, 560-566 349-354, 536-542 C10: S1, Q1, C15: S1-4, Q1, Q3 C10: S1, Q1, C15: S1-4, Q1, Q3

37 2 Dec Money: what it does I 369-379, notes 354-363, notes C10: S2-3, G1, P1, Q2-3 C10: S2-3, G1, P1, Q2-3

38 4 Dec Money: what it does II

39 7 Dec Money: what it does III 379-391 363-373 C10: S4, Q4, Q9, P3-5 C10: S4, Q4, Q9, P1-3

40 9 Dec Money: policy 391-397, 566-575 543-550, 375-378 (incomplete) C10: S5-6, Q5-6, Q12-13, P8, C15: S9, Q7, P5 C10: S5-6, Q5-6, C15: Q7, P7

41 11 Dec Quiz 6, Extra-credit problem due, Review session

Dec 14,
10:30-12:30 Final exam Material: all of the above with strong emphasis on classes 30-41 Material: all of the above with strong emphasis on classes 30-41

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 from previous times I taught this class. Note however, that the order of the material has changed. Watch therefore for class titles: Spring 2003, Fall 2003, Spring 2004, Fall 2004, Fall 2005, Spring 2006, Fall 2006 and Fall 2007. 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.

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

Supplementary material and links

Classified by chapter.

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. 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
7. Income Disparity and Endogenous Growth: Paul Romer
8. A Two-Period Model: The Consumption-Savings Decision and Ricardian Equivalence.
MyRichUncle.com
9. Investment and the Determination of Aggregate Output, the Real Interest Rate, and Employment.
10. A Model of a Monetary Economy: Money Neutrality, Long-Run Inflation, and Money Demand.: Canadian Tire Money
Milton Friedman

			Textbook pages		Recommended Exercices
	Date	Topic	Ed. 3	Ed. 2	Ed. 3	Ed. 2
1	31 Aug	Course Introduction
2	2 Sep	Macroeconomic measurement I	37-59	37-56
3	4 Sep	Macroeconomic measurement II	37-59	37-56	C2: Q1-5, Q7-10, Q15, P1-6, P12, S1-4, S6-9, S12-14, G1-2	C2: Q1-5, Q7-10, Q15, P1-6, S1-4, S6-9, S12-14, G1-2
4	9 Sep	Dealing with business cycle data	67-76, notes 1-11	63-74, notes 1-11
5	11 Sep	Business cycle facts I	76-88, notes 12-21	74-84, notes 12-21
6	14 Sep	Business cycle facts II	76-88, notes 12-21	74-84, notes 12-21	C3: Q1-2, Q7, S1-3	C3: Q1-4, S1-3
7	16 Sep	Quiz 1, Business cycles facts III, Data problem handed out	notes 12-21	notes 12-21
8	18 Sep	Household decisions I	99-112	91-104
9	20 Sep	Household decisions II	99-112	91-104	C4: Q1-9, P3, P5-6, S1-2, G1-2, G6	C4: Q1-9, P3, P5-6, S1-2, G1-2, G6
10	23 Sep	Firm decisions I	112-128	104-120	C4: Q10-13, P8-9, S3, G3-4	C4: Q10-13, P7-8, S3, G3-4
11	25 Sep	Quiz 2, Firm decisions II, A first macroeconomic model: statics I	129-133, 139-142	122-126, 133-136	C4: Q5, P5, P8-9, S5, G5, G7-8	C4: Q5, P5, P7-8, S5, G5, G7-8
12	28 Sep	A first macroeconomic model: statics II
13	30 Sep	Data problem due, Review session
14	2 Oct	Mid-term I	Material: all until class 13	Material: all until class 13
15	5 Oct	A first macroeconomic model: statics III	142-163	136-157	C5: S2-5, S7, S10-13, G2-3	C5: S2-5, S7, S10-13, G2-3
16	7 Oct	Growth: the Maltusian model I	189-199	174-185
17	9 Oct	Growth: the Maltusian model II, Modern stylized facts I	184-199, notes 8-12	168-185, notes 8-12	C6: Q3-5, P1-2	C6: S10-14, G3, Q3-5, P1-2
18	12 Oct	Growth: modern stylized facts II	184-189, notes 8-12	168-174, notes 8-12	C6: S1, Q2	C6: S1, Q2
19	14 Oct	Quiz 3. Growth: the Solow model I
20	16 Oct	Growth: the Solow model II	200-212	185-198	C6: S3-7 Q6-9, P3-5	C6: S3-7, Q6-9, P3-5
21	19 Oct	Growth: technology, growth accounting	213-220	199-219	C6: S15, S17, G1-2, Q15, P6, P10-11	C6: S15, S17, G1-2, Q14, P6, P9-10
22	21 Oct	Endogenous growth: a survey I
23	23 Oct	Engogenous growth: a survey II	236-244	220-231	C7: S5-10, S12-13, Q5-9, P4	C7: S5-10, S12-13, Q5-9, P4
24	26 Oct	Quiz 4. Bringing some dynamics: consumption and savings I	253-279	237-265	C8: S1-6, G1, G4, Q1-2, Q4-11, Q13-14, P1, P3-4	C8: S1-6, G1, G4, Q1-2, Q4-11, Q13-14, P1, P3-4
25	26 Oct	Bringing some dynamics: consumption and savings II	253-279	237-265	C8: S1-6, G1, G4, Q1-2, Q4-11, Q13-14, P1, P3-4	C8: S1-6, G1, G4, Q1-2, Q4-11, Q13-14, P1, P3-4
26	30 Oct	Bringing some dynamics: Ricardian equivalence	279-298	265-283	C8: S8-9, G6, Q17-22, P6, P9	C8: S8-9, G6, Q17-22, P6, P9
27	2 Nov	About fiscal policy
28	4 Nov	Review session
29	6 Nov	Mid-term II	Material: classes 15-28	Material: classes 15-28
30	9 Nov	Bringing some dynamics: investment and interest rates	311-335	293-315	C9: S4-6, G1, Q4-8, P1-2	C9: S4-6, G1, Q4-8, P1-2
31	11 Nov	Bringing some dynamics: investment and interest rates	311-335	293-315	C9: S4-6, G1, Q4-8, P1-2	C9: S4-6, G1, Q4-8, P1-2
32	13 Nov	No class!
33	16 Nov	Bringing some dynamics: market equilibrium	335-346	315-327
34	18 Nov	Bringing some dynamics: policy	346-352	327-333	C9: S11, Q12-16, P9-10, P12	C9: S11, Q12-16, P8-9, P11
35	20 Nov	Quiz 5, Fiscal policy
36	30 Nov	Money: what it is, Extra-credit problem handed out, Teacher evaluation	363-368, 560-566	349-354, 536-542	C10: S1, Q1, C15: S1-4, Q1, Q3	C10: S1, Q1, C15: S1-4, Q1, Q3
37	2 Dec	Money: what it does I	369-379, notes	354-363, notes	C10: S2-3, G1, P1, Q2-3	C10: S2-3, G1, P1, Q2-3
38	4 Dec	Money: what it does II
39	7 Dec	Money: what it does III	379-391	363-373	C10: S4, Q4, Q9, P3-5	C10: S4, Q4, Q9, P1-3
40	9 Dec	Money: policy	391-397, 566-575	543-550, 375-378 (incomplete)	C10: S5-6, Q5-6, Q12-13, P8, C15: S9, Q7, P5	C10: S5-6, Q5-6, C15: Q7, P7
41	11 Dec	Quiz 6, Extra-credit problem due, Review session
	Dec 14, 10:30-12:30	Final exam	Material: all of the above with strong emphasis on classes 30-41	Material: all of the above with strong emphasis on classes 30-41