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.
School: La Trobe Business School
Credit points: 15
Subject Co-ordinator: Darren Henry
Available to Study Abroad Students: Yes
Subject year level: Year Level 3 - UG
Exchange Students: Yes
Subject particulars
Subject rules
Prerequisites: ECO2MFG or ECO2MAT or ECO2PPB
Co-requisites: N/A
Incompatible subjects: N/A
Equivalent subjects: N/A
Special conditions: N/A
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | TBA | Prescribed | TBA | TBA |
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)
Melbourne, 2015, Semester 2, Day
Overview
Online enrolment: Yes
Maximum enrolment size: N/A
Enrolment information:
Subject Instance Co-ordinator: Darren Henry
Class requirements
LectureWeek: 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.
TutorialWeek: 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 element | Comments | % | ILO* |
|---|---|---|---|
| Tutorial participation | 10 | 01, 02, 03, 04 | |
| Five 100-word per-student equivalent group-based problem sets / blog posts | 30 | 01, 02, 03, 04 | |
| Final examination | Equivalent to 2000 words | 40 | 01, 02, 03 |
| Two 1,000-word short (essay-based) individual assignments | 20 | 01, 02, 03, 04 |