AØKK08198U Advanced Development Economics: Applied Macroeconomic and Policy Analysis

Volume 2013/2014
MSc in Economics

This course considers a wide range of policy-relevant topics that applied economists may face in low and middle income countries. The first part of the course focuses on shorter-run macroeconomic management issues, including stabilization/adjustment policies, exchange rate management, public sector financing challenges and external shocks. The second part studies structural issues, including topics such as public sector reform, labour markets and global challenges.

The course complements the existing Masters-level development economics courses (“Micro aspects” and “Macro aspects”) in the sense that 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 reform programmes. Thus, the course should be especially relevant for students that seek to work in emerging markets finance, international organizations, government ministries, diplomatic missions etc.

Learning Outcome

The overall aim of the course is to enable students to undertake applied macroeconomic and economic policy analysis in low and middle income country contexts.

Having successfully taken this course, students will be able to:

  • analyse national accounts and other macroeconomic indicators, thereby being able to provide a coherent understanding of the structure of a given economy;
  • understand the functioning, strengths and weaknesses of some of the main theoretical frameworks (“workhorse policy models”) employed by applied economists in developing countries;
  • explain the principal monetary and exchange rate management challenges facing policy-makers in small open developing economies;
  • understand the theoretical and practical issues involved in the macroeconomic management of potentially volatile external flows, such as those arising from commodity exports;
  • coherently and critically discuss what economic theory and evidence say about “whether”, “how” and “when” to pursue different structural economic policies, including industrial policy, financial and trade liberalization, labour market and public sector reforms;
  • explain insights from the political economy literature regarding the conditions under which macroeconomic management and policy reforms may be more or less successful;
  • appreciate the distinctions between internal (domestic) and external (global/regional) influences on economic development, as well as be aware of emerging global developments such as the increasing influence of China in Africa; and
  • provide examples from the empirical literature, including country cases studies, that shed light on the range of topics covered in the course.


There is no single textbook for the course; rather, readings will be taken from a range of different textbooks as well as journal articles and working papers. To the extent feasible, copies of the required readings will be made available on the course website (Absalon).

Relevant textbooks include:

  • Agénor, Pierre-Richard & Peter J. Montiel (2008), Development Macroeconomics, Third Edition, Princeton University Press.
  • Gandolfo, Giancarlo (2002), International Finance and Open-Economy Macroeconomics, Springer
  • Montiel, Peter J. (2003), Macroeconomics in Emerging Markets, Cambridge University Press
Bachelor degree in economics, preferably including an introductory development economics course.
3 hours of lectures per week for 14 weeks.
  • Category
  • Hours
  • Exam
  • 3
  • Lectures
  • 42
  • Preparation
  • 161
  • Total
  • 206
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
3 hours written exam taking place at Peter Bangs Vej 36.
Without aids
Marking scale
7-point grading scale
Censorship form
External censorship
100 % censurship
Exam period
Will be updated before the start of the semester
Same as ordinary. But if only a few students have registered for the re-exam, the exam might change to an oral exams with a synopsis to be handed in. 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.