AØKK08198U Advanced Development Economics: Applied Macroeconomic and Policy Analysis

Volume 2015/2016
Education

Elective at MSc in Economics

Content

This course considers a range of policy-relevant topics that applied economists may face in low and middle income countries. The course focuses on short- and medium-run macroeconomic management issues. Topics covered include basic data and metrics for applied macroeconomists, national accounts analysis, simple macroeconomic policy models, decomposition techniques, exchange rate valuation, fiscal sustainability and choice of monetary and exchange rate regimes. The objective is to develop a firm understanding of various methods/tools, their strengths and weaknesses, and how they have been applied in practice.

The course complements the existing Masters-level development economics courses (“Micro aspects” and “Macro aspects”). It makes a bridge between specific microeconomic topics and the fundamental determinants of growth. Also, it addresses new topics such as (shorter-run) macroeconomic management and the design of economic policies. The course should be especially relevant for students that seek to work in areas such as emerging markets finance, international organizations, government ministries, or diplomatic missions etc.

Students are expected to be actively involved, particularly in discussion of concrete policy problems and case studies.

Learning Outcome

The course aims to provide students with skills to critically assess a range of applied macroeconomic and economic policy issues in low and middle income country contexts. In doing so, students will become familiar with various topical issues in the field.

Having successfully taken this course, students should:

  • Understand the primary measurement challenges facing macroeconomists and economic policy-makers working in/on developing countries;

  • Be able to analyse national accounts and other macroeconomic indicators, thereby providing a coherent understanding of inter-sectoral and global economic linkages;

  • Comprehend alternative macroeconomic policy models (and associated methods) often used to support macroeconomic policy-making in developing countries;

  • Understand the workings, strengths and weaknesses of analytical tools used to investigate macroeconomic policy challenges/developments in developing countries. These include decomposition techniques (e.g., growth and labour market), real exchange rate evaluations and fiscal sustainability analysis;

  • Be able to explain the principal monetary and exchange rate regime choices, trade-offs and management challenges facing small open developing economies;

  • Demonstrate knowledge of the empirical literature, including country cases studies and applications, which shed light on the range of topics covered in the course.

There is no single textbook for the course. Readings will be taken principally from assigned journal articles and working papers. Links to the required readings will be made available on the course website (Absalon).

Useful reference / background textbooks include:

  • Agénor, Pierre-Richard (2004). The Economics of Adjustment and Growth, Second Edition, Harvard University Press.

  • Gandolfo, Giancarlo (2002). International Finance and Open-Economy Macroeconomics, Springer.

  • Montiel, Peter J. (2003). Macroeconomics in Emerging Markets, Cambridge University Press.

BSc in Economics. It is strongly recommended that Macro C/Micro III has been followed prior to taking "Advanced Development Economics: Applied Macroeconomic and Policy Analysis" and preferably an introductory development economics course.
Lectures. Practical exercises will be provided for each topic, providing students the ability to develop their written work and analytical skills.

Schedule:

The course consists of 2 hours of lectures every week and 2x2 hours every second week for 14 weeks.

For enrolled students please find more information of courses, schedule, rules etc at
https:/​/​intranet.ku.dk/​economics_ma/​courses/​Pages/​default.aspx

Timetable and classroom:
For time and classroom please press the link under "Se skema"(See schedule) at the right side of this page (15E means 2015 Autumn)
  • Category
  • Hours
  • Exam
  • 24
  • Lectures
  • 42
  • Preparation
  • 140
  • Total
  • 206
Credit
7,5 ECTS
Type of assessment
Written examination, 24 hours
The written exam is an individual 24 hours take-home exam. (The exam has been changed from Autumn 2015 to a 24 hour exam instead of a 3 hours written exam)
Exam registration requirements

To be eligible to take the examination, students must satisfactorily complete one assignment during the semester.

Aid
All aids allowed
Marking scale
7-point grading scale
Censorship form
External censorship
100 % censurship
Exam period

6 January 2016 at 10.00 to 7 January 2016 at 10.00

For enrolled students more information about examination, exam/re-sit, rules etc. is available at the student intranet for Examination (English) and student intranet for Examination (KA-Danish).

Re-exam

Same as the ordinary exam. But if only a few students have registered for the re-exam, the exam might change to an oral exam. This means that the examination date also will change.

 

Criteria for exam assesment

The student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.