Those required by the degree programme.
The present course has two objectives. First, at the end of the course students are expected to understand and discuss theories and empirical evidence about the economic cycle, the evolution and applications of the fiscal and monetary policies, and the engines of long-run growth in a closed economy. Second, students are expected to understand and discuss theories and empirical evidence about open economies, such as the determinants and effects of international trade, the role of exporting firms, and the drivers and consequences of foreign direct investment.
The first part of the course aims at building a unified analytical framework that can be used to rationalize the short-term fluctuations of the main macroeconomic aggregates and to assess the effects of fiscal and monetary policies. This part concludes with an overview of the long-term growth, where models focussing on capital accumulation and innovation as sources of economic growth are presented. This part of the course mainly focuses on a closed economy.
- Microfoundations of the demand and supply sides.
- The 3-equation model.
- The role of expectations.
- Macroeconomic policies: Fiscal and monetary policies.
- Growth theories: Solow growth model; endogenous growth (Romer); Schumpeterian growth (Aghion-Howitt).
The second part of the course focuses on open economies and illustrates the main theories about the determinants of international trade and the gains from trade, the implications of firm heterogeneity for export performance, and the emergence and effects of multinational enterprises.
- Neoclassical theories of international trade: Ricardian and Heckscher-Ohlin models.
- Increasing returns, product differentiation and intra-industry trade.
- Heterogeneous-firms, selection and intra-industry reallocations.
- Trade and foreign direct investment.
Beyond studying theoretical models, the course will devote a particular emphasis on the related empirical evidence and the policy implications.
Final written exam, consisting of exercises and open-ended questions.
In case of provisions of the competent authority on containment and management of epidemiological emergency, the teaching may be subject to changes from what is declared in the syllabus in order to make the course and examinations in line with the regulations.