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University of Exeter Business School

Macroeconomic Theory I

Module titleMacroeconomic Theory I
Module codeBEEM138
Academic year2023/4
Module staff

Dr Julian Neira Sanchez (Convenor)

Duration: Term123
Duration: Weeks




Number students taking module (anticipated)


Module description

The module covers topics in modern macroeconomics with an emphasis on tools necessary to pursue
research in macroeconomics.

Module aims - intentions of the module

The module explores core areas of modern macroeconomics with the aim to develop an understanding of
macroeconomic models that enables students to use them to tackle macroeconomic questions. The
emphasis will thus be on learning theoretical concepts and analytical techniques by using them in the
process of discussing relevant modern macroeconomic topics.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

  • 1. Address complex questions at the frontier of macroeconomic research systematically and creatively
  • 2. Make sound judgements and communicate their conclusions to specialists and non-specialists

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

  • 3. Demonstrate self-direction and originality in tackling and solving macroeconomics problems
  • 4. Continue to advance their knowledge and understanding, and to develop new skills to a high level

ILO: Personal and key skills

On successfully completing the module you will be able to...

  • 5. Identify, tackle and solve relevant research problems in macroeconomics
  • 6. Work independently and responsibly on complex research problems

Syllabus plan

Dynamic Programming Methods:

  • Recursive Representations
  • Value Function Iteration
  • Markov Chains
  • Stationary Distributions
  • Policy Function Iteration


Dynamic Programming Applications:

  • Neoclassical Growth Model
  • Heterogeneous Firm Models
  • Job Search Models

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled learning and teaching3311 x 3 hour Lectures
Guided independent study117Reading, reflection, preparation for lectures and exams

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Practice problemsVaries1-6Oral/Written

Summative assessment (% of credit)

CourseworkWritten examsPractical exams

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Exam503 hours1-6Oral/Written
5 problem sets501-4 problems each1-6Oral/Written

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
ExaminationExamination 50% (3 hours)1-6Referral/Deferral period
Problem setsProblem set 50% (1-8 problems)1-6Referral/Deferral period

Indicative learning resources - Basic reading

  • Ljungqvist and Sargent, Recursive Macroeconomic Theory, MIT Press, 2018
  • Stokey and Lucas, with Prescott, Recursive Methods in Economic Dynamics, Harvard University Press, 1989
  • D. Acemoglu, Introduction to Modern Economic Growth, Princeton University Press, 2009
  • Miranda and Fackler, Applied Computational Economics and Finance. MIT Press, 2002

Indicative learning resources - Web based and electronic resources


Indicative learning resources - Other resources


Key words search


Credit value15
Module ECTS


Module pre-requisites

None. Only available to students on the MRes Economics and MRES Economics (PHD Pathway) programmes.

Module co-requisites


NQF level (module)


Available as distance learning?


Origin date


Last revision date