ECONOMIC GROWTH AND STABILITY: THEORY AND EVIDENCE

ECO3EGS

2015

Credit points: 15

Subject outline

In this subject you will learn to move away from "thinking" about macroeconomics to "doing" it. This has four parts: moving from observed economic phenomena to theories, drawing on stylised facts based on real macroeconomic data; building an economic model, considering carefully the consequences of making different assumptions; parameterising and validating the model in a way that is most likely to yield high-quality policy simulations; and simulating a policy shift using the model. Over the semester, you will build a small-scale macroeconomic model of a country of your choice, using the free R computing language. You will also examine how consumers in aggregate decide how much to consume, and what implications this has for our model of the economy.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorDarren Henry

Available to Study Abroad StudentsYes

Subject year levelYear Level 3 - UG

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites ECO2MFG or ECO2MAT or ECO2PPB

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsTBAPrescribedTBATBA

Graduate capabilities & intended learning outcomes

01. Explain the key determinants of long-run economic growth, including technology, social institutions, infrastructure, and education.

Activities:
Lectures, tutorials, reading, class discussion
Related graduate capabilities and elements:
Writing (Writing)
Inquiry/ Research (Inquiry/ Research)

02. Discern between the quality of competing macroeconomic models, by examining the assumptions underpinning the model and the quality of parameterisation.

Activities:
Lectures, tutorials, reading, class discussion
Related graduate capabilities and elements:
Writing (Writing)
Critical Thinking (Critical Thinking)

03. Predict the impact of fiscal and monetary policy shifts, under various assumptions about technological progress, consumption behaviour, and randomness.

Activities:
Lectures, tutorials, reading, class discussion
Related graduate capabilities and elements:
Writing (Writing)
Inquiry/ Research (Inquiry/ Research)
Critical Thinking (Critical Thinking)
Creative Problem-solving (Creative Problem-solving)

04. Demonstrate the ability to source, clean and model real macroeconomic data.

Activities:
Lectures, tutorials, reading, class discussion
Related graduate capabilities and elements:
Inquiry/ Research (Inquiry/ Research)
Critical Thinking (Critical Thinking)
Creative Problem-solving (Creative Problem-solving)

Subject options

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Start date between: and    Key dates

Melbourne, 2015, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorDarren Henry

Class requirements

Lecture Week: 31 - 43
One 2.0 hours lecture per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Tutorial Week: 31 - 43
One 1.0 hours tutorial per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Tutorial participation10 01, 02, 03, 04
Five 100-word per-student equivalent group-based problem sets / blog posts30 01, 02, 03, 04
Final examinationEquivalent to 2000 words40 01, 02, 03
Two 1,000-word short (essay-based) individual assignments20 01, 02, 03, 04