University of Minnesota
Department of Economics
Summer 2008
Econ 3102 : Intermediate Macroeconomics
Lecture:
MTWThF, 11:00 – 1:00pm; Blegen Hall 240
June, 16
∼
July, 3
Instructor:
Mingyi Kang
Oﬃce:
Hanson Hall 3-105
Oﬃce phone:
612.624.9345
Oﬃce hours:
Fri 1:30pm-4:00pm, or by appointment
E-mail:
mingyi@econ.umn.edu
Website:
http://www.econ.umn.edu/~mingyi
E-mail is the best way to reach me. Please allow up to 24 hours for a reply.
July, 7
∼
July, 25
Instructor:
Justin Barnette
Oﬃce:
Hanson Hall 3-141
Oﬃce phone:
612.624.6084
Oﬃce hours:
to be announced
E-mail:
barnette@econ.umn.edu
Website:
to be announced
1
Course description
The purpose of Econ 3102 is to provide a formal exposition of modern macroeconomics. I will start building
up from what you learned in Econ 1102 and expand it; yet, the analysis will be done in a rigorous way. For
this reason, the tools you’ve learned in Econ 3101 will prove useful (I’ll do a small review before using them);
even though this is not a microeconomics course, you need to be sure why things happen and to keep a clear
idea of what’s going on behind all the results we get. In the end, both graphical and mathematical analysis
will be used for the exposition.
Up to now, there is no “defnite” approach to teaching an intermediate macroeconomics course. While
you should be familiar with the Keynesian model (most likely this was what you learned in Econ 1102), I’ll
present both the Keynesian and the Real Business Cycle (RBC) frameworks in the course, with an emphasis
on the latter. The reason is simply that the RBC model is the workhorse of modern macroeconomics (at the
research frontier).
Last, but not least, an added goal of the course is to test important theoretical results on real-world data
and examples. I think that any Macroeconomics course should balance a strong theoretical background and
empirical analysis. Get ready to crunch some data.
2
Prerequisites
Class prerequisites are Econ 1101, 1102, 3101 and Math 1271 (or equivalents). I will assume that you are
comfortable with macroeconomic concepts at the level of Econ 1102 (say, deﬁnitions, ideas, methods) and
build upon them as I present the material; also, I will be constantly using results you learned in 3101, such as
the utility maximization problem and its related topics (i.e., income and substitution eﬀects, intertemporal
choice, labor supply, etc.). In regards to math, I will take as granted that you know how to work with
calculus (derivatives and general optimization); although the course will not be math-based, I will be using