Module code: ECO3043

Module Overview

The module mainly consists of two themes. i) The first theme develops a micro-founded dynamic equilibrium model of the macro-economy by combining agents and firms that are forward-looking and rational. This allows students to understand the modern model of economic fluctuations that informs economists and policymakers. Thinking in a structured framework and the importance of rigorous arguments is highlighted and insights about fiscal and monetary policy are drawn. iii) The second theme focuses on economic growth. The aim is to survey the main models that are currently used to describe the determinants of economic growth. This includes both exogenous and endogenous growth models.

Module provider


Module Leader

KARANTOUNIAS Anastasios (Economics)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 6

Module cap (Maximum number of students): N/A

Overall student workload

Workshop Hours: 11

Independent Learning Hours: 67

Tutorial Hours: 10

Guided Learning: 62

Module Availability

Semester 2

Prerequisites / Co-requisites


Module content

Indicative content includes:

  • Time, intertemporal preferences, Dynamic optimisation and general equilibrium

  • The RBC model and applications, The Solow model and important variations

  • Empirical applications of the neoclassical growth models, Endogenous growth models

Assessment pattern

Assessment type Unit of assessment Weighting
School-timetabled exam/test MIDTERM TEST 30

Alternative Assessment


Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate:

Their technical skills relating to, and understanding of, Dynamic optimisation problems, the basic Real Business Cycle model, and the models of long-run growth , as well as some of their empirical applications.

Thus, the summative assessment for this module consists of:

  • A midterm test

  • A final exam

Formative assessment and feedback:

Students receive verbal feedback during both in in-person workshops and in  tutorials. During workshops , smaller practice exercises are solved and discussed (encouraging students also to work in small groups), while the problems discussed in   tutorials are more substantial. Guideline solutions are posted online after tutorials have taken place. Feedback relating to the coursework test is predominantly given individually and in detail on the scripts of students, and main issues are discussed further in an in-person  workshop  and in the online discussion groups. Office hours are held weekly to address any remaining questions.

Module aims

  • Familiarize students with conceptual and appropriate mathematical tools in macroeconomic theory and policy that allows them to develop an understanding of business cycles fluctuations in the short-run.
  • Present models that explain long-run economic growth.

Learning outcomes

Attributes Developed
001 Apply static and dynamic optimization KCP
002 Understand the micro-foundations of modern macroeconomics KCT
003 Evaluate the insights and applications of the Real Business Cycle model KCPT
004 Analyse various sources of economic growth KT
005 Elaborate on the issue of convergence in living standards across countries KC
006 Discuss intuitively and technically the main models of economic growth KCPT

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Methods of Teaching / Learning

The module uses a hybrid approach to learning and teaching that is  based on captured content and on in-person workshops and tutorials.  Captured content each week is designed to furnish specific learning outcomes in combination with lecture slides and guided activities. In in-person workshops, the material  is discussed further. Exercises that are designed to help interpretation of the material are solved. Additional exercises are solved in weekly tutorials.

The learning and teaching strategy is designed to:

Enhance student’s analytic skills, and appreciation of complex real-world issues through analytic tools, as well as enhance their skills in presenting their findings in verbal and written format (through discussions in lectures and tutorials as well as written answers to exercises).

A crucial element of the teaching strategy is to associate the economic models taught with current economic conditions in order to demonstrate their usefulness. This is done by interpreting business cycle statistics and growth facts through the lens of the formal models and by demonstrating both the caveats  of  models  and the  pitfalls of casual economic analysis.    

Equally important is  feedback to the students. This is given during the workshops/ tutorials and through online discussion groups where aspects of the material are discussed.

The learning and teaching methods include:

  • 1-hour workshop per week x 11 weeks

  • 1-hour tutorial per week x 10 weeks

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list
Upon accessing the reading list, please search for the module using the module code: ECO3043

Other information

The School of Economics is committed to developing graduates with strengths in Employability, Digital Capabilities, Global and Cultural Capabilities, Sustainability and Resourcefulness and Resilience. This module is designed to allow students to develop knowledge, skills, and capabilities in the following areas:

Resourcefulness & Resilience. Students are encouraged to use the rigorous models taught to understand current economic phenomena and  policy debates. This is done through the guided learning activities and the formative and summative assessments. A lot of emphasis is given on how to modify the models in order to address new questions that emerge like an unprecedented natural disaster or a pandemic, forcing students to become resourceful. Moreover, students  learn how to reflect on  the fundamentals of a particular country and  develop their critical thinking about unintended consequences of growth  policies.  The module builds on the entire knowledge acquired during the Bachelor’s degree and requires both a level of technical sophistication and of  economic maturity.

Employability. Students acquire through the guided learning activities  an overall perspective of the macroeconomy both in the short-run and in the long-run, which allows them to interpret economic conditions  and assess macroeconomic policies.  In addition, in-depth  analysis of the captured content is provided and challenging questions are asked   in the workshops and tutorials. Consequently,  students develop an economic maturity and skills that are useful both for the  industry, which seeks employees with an understanding of the business cycle, with the purpose of forecasting economic conditions and understanding profit opportunities, and the public sector, which implements policies that counteract the business cycle and promote growth.  

Global and Cultural Intelligence. Students have to understand why some countries have high output per capita and  why others are lagging.  Through exercises and discussions in the workshops and tutorials, together with additional readings on the experience of economic growth in different countries, they  learn which are the common global factors that may be driving technological progress and what are the country specific elements that pertain to institutions, historical experience or social norms.  As such, they develop both their global and their cultural intelligence.   

Digital Capabilities. The module makes heavy use of online materials and requires students to interact online through the discussion groups. Moreover, students are shown how to access data from various sources that help interpret business cycles and growth facts.

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Economics BSc (Hons) 2 Compulsory A weighted aggregate mark of 40% is required to pass the module
Economics and Mathematics BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2022/3 academic year.