# KAFP 3385 - Macro Economics for Public Policy

Type d'enseignement : Lecture alone

Semester : Autumn 2017-2018

Number of hours : 24

Language of tuition : English

## Pre-requisite

Solid knowledge of micro-economic theory is expected for this class. In addition, knowledge of simple algebra and analysis (multivariate calculus, some basic probability theory, differential calculus, and the ability to perform mathematical reasoning) is required for the class.

## Course Description

This class is a broad introduction to modern macroeconomics. In this first class, we will go over some of the pillars of modern macroeconomics. There are three guiding principles to this class: first, discover, understand and (optionally) read a few of the classical contributions in macroeconomics in the last fifty years; second, become familiar with economic reasoning; third, acquire practical technical skills, learn where to look for macro data, and how to analyze those data. Note that the lectures in the classroom will deal mostly with general economic concepts. The problem sets and TA sessions will deal with the more technical aspects of the class.

## Teachers

CHANEY, Thomas (Professor at Sciences Po)

## Pedagogical format

Classroom lectures, TA sessions, problem sets at home.

## Course validation

Grading: your course grade will be based on problem sets (30%), the midterm exam (30%) and the final exam (40%). Assignments: Problem sets: There will be 6 problem sets due over the semester. All problem sets will be available online from the beginning of the class, so that students can decide freely how to allocate their time working on the psets. 6 due dates will be set in advance for the psets, and solutions will be posted online shortly after the due date is past. No late pset will be accepted. Late or missing problem sets will count as zero. The TA will answer questions about and give hints for the solution to the upcoming psets during TA sessions. All psets are handed in electronically, and only typeset psets are accepted. We accept a scan of hand-written equations, but equations only. Extra points will be given for clarity. The TA has the discretion to refuse unreadable psets. Students are allowed to work on their own or in pairs (2 students in a team max) on the problem sets. For the problem sets, students will both solve theoretical questions, and perform simple empirical analysis. For the empirical part of the problem sets, students will be asked to access macro data online on their own (we will give you instructions on where to find the data), and then perform simple calculations on those datasets, using only simple tools from a spreadsheet. This empirical part will give the students a first hand experience in dealing with actual data. The midterm exam will take place on Thursday 13 October 2016, during regular class hours. All the material covered in class until that date will be required for the midterm. The midterm is a closed book exam: no calculator, no text-book, no document allowed. The final exam will take place during final exam period. All the material covered in class and during the TA session over the entire semester will be required for the exam. The final is a closed book exam: no calculator, no text-book, no document allowed. Students have a right to ask for a re-grade of their problem set if they believe their grade is unduly harsh. To do so, the students have to send a written (type-set) request by email to the TA (Thomas Bourany), explaining in details why they believe they deserve a re-grade, referring for instance to the pset solutions. The TA has the discretion to accept or reject any such request. If accepted, the original pset will be re-graded, and the new grade will replace the old one. If the new grade is lower than the first, it is still the new one that replaces the old. So a re-grade is a guarantee of a fair grade, but no guarantee of a better grade. Students are expected to maintain high standards of academic integrity. Any instance of cheating, copying others' problem sets, plagiarism, or other form of academic misconduct, will be severely reprimanded.

## Workload

Weekly problem sets, midterm, exam.

## Required reading

Jones, Charles I. and Romer, Paul M. (2010), “The New Kaldor Facts: Ideas, Institutions, Population and Human Capital,” American Economic Journal: Macroeconomics

## Additional required reading

- Solow, Robert M (1956), “A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics
- Kremer, Michael (1993), “Population Growth and Technological Change: One Million B.C. to 1990,” Quarterly Journal of Economics
- Diamond, Jared (1997), “Guns, Germs and Steel,” W. W. Norton, New York
- Lucas, Robert E. Jr. (2003), “Macroeconomic Priorities,” American Economic Review
- Samuelson, Paul A. (1958), “An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money,” Journal of Political Economy
- Diamond, Doug W. and Philip H. Dybvig (1983), “Bank Runs, Deposit Insurance, and Liquidity,” Journal of Political Economy