New KeynesianModel with adjustment costs on investment and the under-utilization of maximum installed capacity -A brief theoretical review: adjustment costs on investment and the under-utilization of maximum installed capacity -Adjustment Cost on Investment -Cost of under-utilization of maximum installed capacity -The model o Households o Firms o The model’s equilibrium condition -Steady state -Log-linearization (Uhlig’s method) -Productivity Shock
Hands on:
Introduction to Matlab/Julia
Key features of Dynare
Module 2
Module 6 New-Keynesian Model with government -A brief theoretical review: Government -Introducing taxes into the DSGE models -Government budget constraints -Public investment -Alternative forms of government in the DSGE models -Taylor’s Rule -The model o Households o Firms o Government o Model’s equilibrium condition o Steady state -Log-linearization (Uhlig’sMethod) -Monetary and fiscal policy productivity shocks and analysis of the Laffer curve -Productivity and monetary shocks -Fiscal policy shocks -Using taxation for fiscal adjustment -The Laffer curve
Hands on:
Dynare Code in Julia
Compute Steady state
Solving Model
Simulating model
Module 3
Bayesian Estimation of Models -The An and Schorfheide Model -A Non-Linear Variant of the An and Schorfheide Model
Hands on:
Estimation of the models
Module 4
Bayesian Estimation -A Small Open Economy DSGE Model: The Lubik and Schorfheide -A Model with Money Demand and Money Supply: Fagan, Lothian and McNelis
Hands on:
Dynare Code in Julia
Estimation
Module 5
Bayesian Estimation of large scale models -1.A Medium-Sized Closed Economy DSGE Model: Smets and Wouters • The Sticky Price and Wage Equations • The Flexible Price and Wage Equations . • The Exogenous Variables • The Steady-State Equations • The Measurement Equations -2.Quest III Model for Fiscal and Monetary Policy
