BAEcon Development Studies

Year of entry: 2022

Course unit details:
Macroeconomics IIIB

Course unit fact file
Unit code ECON30612
Credit rating 10
Unit level Level 3
Teaching period(s) Semester 2
Offered by Economics
Available as a free choice unit? Yes


See course Blackboard pages.


Unit title Unit code Requirement type Description
Macroeconomics IIIA ECON30611 Pre-Requisite Compulsory
Macroeconomics IIB ECON20402 Pre-Requisite Compulsory
ECON10001 Pre-Requisite Compulsory
Adv Maths - BAEcon & BSc Econ ECON10071 Pre-Requisite Compulsory
ECON20281 Pre-Requisite Compulsory


The aims of this course are to:

  1. Familiarize students with recent developments in macroeconomic theory and policy issues, particularly on economic growth.
  2. Provide students with the foundation for postgraduate macroeconomics courses.

Learning outcomes

At the end of this course, you should be able to:

  1. Demonstrate their understanding of the development of growth theory.
  2. Critically evaluate neoclassical and endogenous growth models.
  3. Demonstrate the understanding on the origin of business cycles and related policy issues.


Topic 1: Introduction to Economic Growth.

Topic 2: Solow Model.

Topic 3: Endogenous Growth Theory.

Topic 4: Endogenous Technological Change.

Topic 5: Credibility and Reputation in Monetary Policy.

Teaching and learning methods

Lectures and exercise classes.

Employability skills

Analytical skills
Problem solving

Assessment methods

  • Mid-Term Test (10%).
  • Final Exam (90%).

Feedback methods

  • Class feedback.
  • Office hours.
  • Revision sessions.

Recommended reading

  • Advanced Macroeconomics by David Romer, McGraw Hills.
  • Introduction to Economic growth by Charles I. Jones, W.W. Norton and Company.

In addition, the following references from the following journal articles may facilitate your understanding of the course materials. These journals should be available in the John Ryland and/or Lewis Library, and most of them can be found through the web page


Theories of Economic Growth:

  • Relevant chapters from the text: Romer, Ch. 1; Jones, Ch. 1 - 5, and 8.
  • Additional Readings:
  • Solow, R.M., 'Perspective on Growth theory." Journal of Economic Perspectives, Winter 1994, 45-54.
  • Romer, P.M., "The Origins of Endogenous Growth." Journal of Economic Perspectives, Winter 1994, 3-22.
  • Romer, P.M., 'Increasing Returns and Long Run Growth.' Journal of Political Economy, 1986, 94(5):1002-1037.
  • Romer, P.M., 'Endogenous Technological Change.' Journal of Political Economy, 1990, 98(5) part 2:71-102
  • Lucas, R E. 'On the Mechanics of Economic Development.' Journal of Monetary Economics, 1988, 22:3-42.

Business Cycle Theories:

  • Relevant chapters from the text: Romer, Ch. 4 and 6.
  • Additional Readings:
  • Mankiw, N.G., "Real Business Cycles: A New Keynesian Perspective." Journal of Economic Perspectives, Summer 1989, 79-90.
  • Plosser, C.I., 'Understanding Real Business Cycles." Journal of Economic Perspectives, Summer 1989, 51-75.
  • Mankiw, N.G., "Small Menu Costs and Large Business Cycles: A Macroeconomic Model of Monopoly." Quarterly Journal of Economics, 1985.

Study hours

Scheduled activity hours
Assessment written exam 1.5
Lectures 14
Tutorials 4
Independent study hours
Independent study 80.5

Teaching staff

Staff member Role
Mohammad Haque Unit coordinator

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