COURSE INTRODUCTION AND APPLICATION INFORMATION

finansphd.ss.ieu.edu.tr

Course Name

Code	Semester	Theory (hour/week)	Application/Lab (hour/week)	Local Credits	ECTS
	Spring

Prerequisites	None
Course Language
Course Type	Required
Course Level	-
Mode of Delivery	-
Teaching Methods and Techniques of the Course
Course Coordinator	-
Course Lecturer(s)	-
Assistant(s)	-

Course Objectives
Learning Outcomes	The students who succeeded in this course; To learn macroeconomic modeling through using advanced macroeconomic theories and concepts. To make policy analysis through macroeconomic modeling in a theoretical context. To use macroeconomics knowledge at advanced level and to comment on actual (practical) macroeconomic issues by using this advanced framework. To analyze new and complex ideas in macroeconomics critically. To compare and contrast results of different macroeconomic frameworks.
Course Description

Course Category	Core Courses
	Major Area Courses
	Supportive Courses
	Media and Managment Skills Courses
	Transferable Skill Courses

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week	Subjects	Required Materials
1	One period General equilibrium	Chapter 1 in HY and other sources
2	One period General equilibrium	Chapter 1 in HY and other sources
3	One period General equilibrium	Chapter 1 in HY and other sources
4	Two period General equilibrium	Chapter 2 in HY and other sources
5	Two period General equilibrium	Chapter 2 in HY and other sources
6	Two period General equilibrium	Chapter 2 in HY and other sources
7	Difference Equations	Appendix 1 in HY and other sources
8	Differential Equations \ Midterm
9	Overlapping GenerationsModeling	Chapter 3 in HY and other sources
10	Overlapping GenerationsModeling	Chapter 3 in HY and other sources
11	Neoclassical growth theory	Chapter 1 in HY2 and other sources
12	Neoclassical growth theory	Chapter 2 in HY2 and other sources
13	Neoclassical growth theory	Chapter 3 in HY2 and other sources
14	Neoclassical growth theory	Chapter 4 in HY2 and other sources
15	Review
16	Review of the Semester

Course Notes/Textbooks

David Romer (DR), Advanced Macroeconomics McGrawHill Irwin, Third Edition 2006; FabioCesare Bagliano and Giuseppe Bertola (FG), Models for Dynamic Macroeconomics Oxford University Press, First Edition 2007; Peter Birch Sorensen and Hans Jorgen WhittaJacobsen (SW), Introducing Advanced Macroeconomics: Growth and Business Cycles Mc Graw Hill Education, 2005; Hakan Yetkiner (HY), Advanced Macroeconomics, unpublished manuscript.

Suggested Readings/Materials

Attanasio, O. P. “Consumption,” Chapter 11 in J. Taylor and M. Woodford, (eds.) Handbook of Macroeconomics, Elsevier, Amsterdam, 1999. / Ando, A. and F. Modigliani, "The LifeCycle Hypothesis of Savings: Aggregate Implications and Tests," American Economic Review, 1963. / Friedman, M., A Theory of the Consumption Function, Chapters 13, Princeton University Press, 1963. / Hall, R.E., "Stochastic Implications of the Life CyclePermanent Income Hypothesis: Theory and Evidence," Journal of Political Economy, 1978. / Carroll, Christopher D, Kimball, Miles S, 1996. "On the Concavity of the Consumption Function," Econometrica, Econometric Society, vol. 64(4), pages 98192, July. / Campbell, J.Y. and A. Deaton, "Why is Consumption so Smooth?" Review of Economic Studies, 1987. / Campbell, J.Y. and N.G. Mankiw, "Consumption, Income, and Interest Rates: Reinterpreting the Time Series Evidence," NBER Macroeconomics Annual, 1989. / Fuhrer, J.C., “Habit formation in Consumption and its Implications for Monetary Policy Models,” American Economic Review, 2000. / Krueger D. and FernandezVillaverde J. (2002), Consumption over the Life Cycle: Some Facts from Consumer Expenditure Survey Data. / Caballero, R.J., “Aggregate Investment,” Chapter 12 in Taylor and Woodford. Jorgenson, D.W., "Capital Theory and Investment Behavior," American Economic Review, 1963. / Lucas, R.E., "Adjustment Costs and the Theory of Supply," Journal of Political Economy, 1967. / Gould, J.P., "Adjustment Costs in the Theory of Investment of the Firm," Review of Economic Studies, 1968. / Hayashi, F., "Tobin's Marginal and Average q: A Neoclassical Interpretation," Econometrica, 50, 1982. / Abel, A., "Dynamic Effects of Permanent and Temporary Tax Policies in a q Model of Investment," Journal of Monetary Economics, 1982. / Dixit, A.K. and R.S. Pindyck, Investment Under Uncertainty, Chapters 1 and 2, 1994. / Sargent, T.J. and N. Wallace, "Rational Expectations and the Theory of Economic Policy," Journal of Monetary Economics, 1976. / McCallum, B.T., "Rational Expectations and Macroeconomic Stabilization Policy," Journal of Money, Credit, and Banking, 1980. / Taylor, J.B., "Conditions for Unique Solutions in Stochastic Macroeconomic Models with Rational Expectations," Econometrica, 1977

EVALUATION SYSTEM

Semester Activities	Number	Weigthing
Participation
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
Presentation / Jury
Project
Seminar / Workshop
Oral Exam
Midterm	1	50
Final Exam	1	50
Total

Weighting of Semester Activities on the Final Grade		50
Weighting of End-of-Semester Activities on the Final Grade		50
Total

ECTS / WORKLOAD TABLE

Semester Activities	Number	Duration (Hours)	Workload
Course Hours (Including exam week: 16 x total hours)	16	3	48
Laboratory / Application Hours (Including exam week: 16 x total hours)	16
Study Hours Out of Class	16	6
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
Presentation / Jury
Project
Seminar / Workshop
Oral Exam
Midterms	1	40
Final Exams	1	40
		Total	224

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#	Program Competencies/Outcomes	* Contribution Level
#	Program Competencies/Outcomes	1	2	3	4	5
1	Developing scientific expertise and capabilities in the field of finance through using creative and critical thinking and research skills; innovatively contribute to the discipline by new ideas and definitions based on the graduate level qualifications.
2	Comprehending the interaction across various disciplines related to the field of finance, reaching at original conclusions by using new and complex analysis, synthesis and evaluation skills.
3	Developing and championing new approaches to contribute the field of finance through apprehending the research methods.
4	Contributing to the science of finance through developing new methods or implementing an existing method to a different field through investigating, comprehending, designing original topics.
5	Conducting independent research, analyzing scientific phenomenon through broad, deep and critical perspective, arriving at new syntheses and evaluations in the discipline of finance.
6	Publishing scientific articles in reputable refereed national and international journals, presenting papers in scientific conferences in the field of finance and its sub-disciplines.
7	Following, attending and organizing national and international events such as conferences, seminars and panels to keep up with developments and create new solutions to the problems in the field of finance.
8	Following pioneering and innovative theories and methods in the field of finance and implementing them in analysis and research.
9	Developing creative solutions to the social, scientific and ethical issues within the scope of finance and business life and extending values that supports these solutions.
10	Being able to use English fluently for both comprehending and publishing scientific publications and developing proper communication.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest