Course Objectives:
Understand the basic concepts and structure of DSGE models.
Learn the process of building and solving simple DSGE models.
Get familiar with the computational tools used in DSGE modeling.
Target Audience:
Academics and PhD students new to DSGE modeling.
Professors looking to introduce DSGE modeling in their courses.
Course Structure: Module 1: Introduction to DSGE Models
Week 1: Overview of DSGE models: history and applications.
Week 2: Key components: agents, markets, and shocks.
Module 2: Building Basic DSGE Models
Week 3: Setting up a simple DSGE model: representative agent and preferences.
Week 4: Production, technology, and market structures.
Module 3: Solving DSGE Models
Week 5: Linearization techniques and the role of steady states.
Week 6: Introduction to computational tools: MATLAB and Dynare.
Readings:
"Recursive Macroeconomic Theory" by Lars Ljungqvist and Thomas J. Sargent.
"Macroeconomic Theory: A Dynamic General Equilibrium Approach" by Michael Wickens.
Assignments:
Weekly problem sets involving model setup and solution.
A mini-project to construct and solve a basic DSGE model.
Final Project:
Build and solve a simple DSGE model using Dynare.