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351-0539-00L 3 Credits MSC D-MATH , D-MTEC

Economic Dynamics

Lecturers & Examiners: Dr. Mauro Bambi
VVZ CR n/a

Last Updated: 2026-02-05 15:29:38

Abstract

Overview of basic models in growth and real business cycleliterature; fiscal policy predictions; alternative sources ofaggregate fluctuations. Implications of military buildup and oilsupply shock.

Objective

The course starts by underlining the stylized facts that should guide any economists in the modeling of economic growth. What are the main engines for growth? What about the presence of fluctuations in the short run? What are the implications of different government policies? These are only an example of the questions rising by looking at the empirical evidences. Generation of economists have tried to give answers to these questions through different approaches. A first objective of this course is then to guide the students through these contributions by starting with the simplest neoclassical growth model (Ramsey model). A full description of the economic mechanisms and implications of this model are provided; its responses to technological change and to different fiscal policies are also discovered. The second objective of the course is to give an overview of the possible sources of aggregate fluctuations in an economy. Among these, a main focus will be given to the presence of exogenous uncertainty and then to the real business cycle theory. A natural bridge between growth theory and real business cycle theory is probably represented by Campbell (JME 1994). Starting from this article, we learn how an economy will response to different type of shocks like for example a military build up or an oil supply shock.

Resources

Lecture Notes

A script will be provided.

Literature

(1) Blanchard O., J., and Fischer S., Lectures on Macroeconomics. MIT Press 2001. (2) Campbell, J. Y. (1994), Inspecting the Mechanism. Journal of Monetary Economics 33, 463-506. (3) Baxter M., and King, R. G. (1993), Fiscal Policy in General equilibrium. American Economic Review, vol. 83(3), 315-334.

Learning Materials (Links)

General Information

Language
English
Levels
MSC
Frequency
Yearly recurring

Examination

Type
session examination
Mode
oral 30 minutes

Course Components

Type Title Time & Place Hours
lecture Economic Dynamics
  • Wed 17:15-19:00 (HG D 1.1)
2 h weekly

Offered In