Subject ECON90003 (2012)

Note: This is an archived Handbook entry from 2012.

Credit Points: 12.50
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2012:

Semester 1, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable

Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: Seminars or lectures and tutorials totalling three hours per week
Total Time Commitment:

Estimated total time commitment of 120 hours per semester


A major sequence in economics will normally be required before this subject is taken.

Completion of 100 points in the Master of Economics



Recommended Background Knowledge:


Non Allowed Subjects:


Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website:


Prof Ian King


Graduate School of Business and Economics
Level 4, 198 Berkeley Street
Telephone: +61 3 8344 1670
Online Enquiries

Subject Overview:

This is an advanced course in macroeconomic theory, with the intention of introducing students to frontier techniques. Topics may include: techniques of dynamic optimization, dynamic optimization theory, economic growth, optimal taxation, unemployment, and money.


On successful completion of this subject, students should be able to:

  • Solve first-order and second-order ordinary differential equations and apply these solutions to explain possible macroeconomic outcomes;
  • To apply basic dynamic techniques to macroeconomic models in order to solve for short-run and long-run outcomes;
  • To apply the techniques of static and dynamic optimisation to solve macroeconomic problems including, in particular, to solve the intertemporal problem of the representative firm and to solve the intertemporal problem of the optimising consumer;
  • To integrate the model of the representative firm and the optimising consumer into a representative agent model of the economy;
  • To apply standard dynamic techniques to growth theory models.
  • 3-hour end-of-semester examination (50%)
  • Class assignments totalling not more than 2000 words (20%)
  • 1.5 hour mid-semester examination (30%)
Prescribed Texts:

You will be advised of prescribed texts by your lecturer.

Breadth Options:

This subject is not available as a breadth subject.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

On successful completion of this subject, students should have improved the following generic skills:

  • The use of dynamic macroeconomic models;
  • The explanation of likely economic outcomes in the short-run, in the long-run and in the transition from short-run to long-run equilibria;
  • The use of optimisation techniques to derive theoretical models that can explain the behaviour of economic agents;
  • The integration of theoretical models based on optimising behaviour into full-scale models of the macro-economy;
  • The improvement of problem solving skills, through completing class assignments.
Related Course(s): Doctor of Philosophy - Business and Economics
Master of Commerce - Economics
Master of Economics

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