This is the course homepage of Advanced Macroeconomics II of Jinan University in Fall, 2021. I will update this homepage every week during the course. You can download all the syllabus, lecture notes, problem sets, and answers in the Baidu cloud disk. The fetch code is edsr.

1. The introduction to MatLab is taught by my teaching assistant Yuhan Yang.

2. Lecture 1: We discuss basic tools of macroeconomics: Markov Chain, Lag operator, first order linear difference equation. We discuss the scenarios when we have stable solutions, which is what we care about in macroeconomics. When the parameter $|a|<1$, we should expand backward. If $|a|>1$, we should expand forward to get the unique stable solution.

3. Lecture 2: We show how to get the stable solution of vector first order linear equation. Basically, we should decompose the whole system to stable part and explosive part according to whether the absolute values of eigenvalues of matrix $A$ are less than 1 or larger than 1. For the explosive part, we should expand forward to get the saddle point path. Here, whether we can get unique, multiple or no stable solution hinges on the Blanchard and Kahn's condition. Then we can get the full stable solution through the stable part if BK condition is satisfied. And we discuss the impulse response functions and forecast error variance decomposition in the stochastic first order linear difference equation or structural vector autoregression model. Finally, we discuss the VAR model and the identification strategies to transform the VAR to SVAR.

4. Lecture 3: we discuss the one-period model with work-leisure tradeoff or intratemporal substitution. The consumer trades off work less and have more leisure but consume less. We introduce the consumer's problem and firm's problem and discuss the optimization method: Lagrangian multiplier. Then we discuss the social planner's problem. We also show the two fundamental theorems of welfare economics.

5. Lecture 4: we discuss the two-perod model with consumption-saving tradeoff or intertemporal substitution. The consumer trades off today's consumption and future's consumption. In the consumer's problem, we discuss consumption smoothing and intertemporal substitution w.r.t. interest rate $r$. We discuss the Ricardian equivalence in the competitive equilibrium.

6. Lecture 5: We add uncertainty into the two-period model and show the stochastic version. Then we embed the work-leisure substitution and consumption-savings substitution into the two period model and show that at the margin the consumption of $C$, $C'$, $l$, and $l'$ should be equalized with consideration of their price $1+r$, $1$, $w(1+r)$, and $w'$ in terms of future consumption. We calibrate the two-period model and show the comparative statics numerically.