Θέματα Δυναμικής Οικονομικής

Topics in Dynamic Economics

The objective of this course is to introduce students to what is labelled as ‘’Modern Macroeconomics’’, developed formally in the 60’s – 70’s, which are macroeconomics that use microeconomic foundations. In particular, the lectures intend to cover basic models of Neoclassical Growth Theory and basic models of (Neoclassical, Decentralized, Competitive) Dynamic General Equilibrium (DGE) Theory. Briefly (and roughly), the following topics will be covered in the lectures.

• A refreshment to static maximization theory (concave and quasi-concave functions, convex sets, elements of differentiation, Lagrange and Kuhn Tucker)
• From statics to dynamics: a static, all inclusive macroeconomic competitive general equilibrium model for a/any time period (of the infinite time horizon)
• Exogenous Growth: Sollow-Swan
• Optimal (endogenous) growth: Ramsey, Cass, Koopmans
• Elements of sequential maximization methods and recursive (dymamic programming) methods
• DGE with dynastic households
• DGE with overlapping generations

If time (and other circumstances) allow it, uncertainty will be introduced and basic Dynamic Stochastic General Equilibrium (DSGE) theory will be examined as well.

There are no other actual prerequisites for this course apart from the ‘’Mathematics for Economists’’ that you have already been taught in previous semesters, and particularly deep knowledge of static maximization theory and the related to it mathematics. It is desirable for students, nevertheless, to have also a profound, solid knowledge of Macroeconomics and Microeconomics (in a rather advanced level I would say).

Students will be assigned with 5 sets of exercises, which they must solve in order to obtain (up to) 5 points. They must be submitting them directly to me, to my email, within a specific predetermined time frame (roughly, two to three weeks for each exercise set). All exercises/topics will be solved in the classroom, during the lectures. In the final exam, students will be, basically, asked to nearly reproduce some of these topics, in order to, hopefully, gain the rest 5 points. For the exercises sets, students will be urged to work in groups, but they must be submitting their answers individually. They must feel free to contact me to my email or come to my office hours. They will be supplied with the book of Romer (Advanced Macroeconomics). Parts only of it will be covered, and in a different manner. Thus, it is recommended for students to come to the lectures and use, basically, the lecture outcomes (what will be told inside the classroom and, principally, what will be written in the blackboard). Intrigued and enthusiastic students who want to read more will be provided by me with extra references.