AEM 7040

Applied Macroeconomics

Course Description

Course information provided by the Courses of Study 2021-2022.

AEM 7040 covers analytical concepts and techniques of dynamic analysis, with a focus on optimal control theory as applied to problems in applied macroeconomics. The course also covers macroeconomic applications of these methods that are relevant to the environment, energy, natural resources, agriculture, development, management, finance, marketing, accounting, industrial organization, innovation, entrepreneurship, organizations, technology, and business economics. Topics covered include optimal control theory, capital theory, the maximum principle, the stationary rate of return to capital, investment, dynamic competitive equilibrium, calculus of variations, q-theory, optimal economic growth, optimal savings, optimal growth with pollution, the environmental Kuznets curve, optimal multisector growth, limits to growth, national income accounting, sustainability, natural capital, discounting, structural uncertainty, catastrophes, the dismal theorem, climate change, innovation, endogenous technical change, and productivity.

When Offered Fall.

Prerequisites/Corequisites Prerequisite: multivariable calculus, differential equations, graduate-level microeconomics.

• Students will learn and apply analytical concepts and techniques of dynamic analysis.
• Students will examine and analyze macroeconomic applications of these methods that are relevant to the environment, energy, natural resources, agriculture, development, management, finance, marketing, accounting, industrial organization, innovation, entrepreneurship, organizations, technology and business economics.
• Students will be able to discuss and apply optimal control theory, capital theory, the maximum principle, the stationary rate of return to capital, investment, dynamic competitive equilibrium, calculus of variations, q-theory, optimal economic growth, optimal savings, optimal growth with pollution, the environmental Kuznets curve, optimal multisector growth, limits to growth, national income accounting, sustainability, natural capital, discounting, structural uncertainty, catastrophes, the dismal theorem, climate change, innovation, endogeneous technical change, and productivity.
• Students will develop the creative and critical thinking skills needed for research in the area.

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