Skip to main content

Introduction To Dynamic Stochastic General Equilibrium Models

TRAINING DATES: 10th November 2025–14th November 2025
COUNTRY: UAE-Dubai

Overview

This intensive course is tailored for professionals involved in economic forecasting and policy analysis in the central banks, ministries, research organizations, and international institutions.

The course will introduce all the basic tools for constructing and implementing dynamic stochastic general equilibrium (DSGE) models for policy analysis and forecasting.

Course objective: 

By the end of the course the participants will have acquired detailed knowledge of and hands-on experience in:

  • the use of MATLAB/Julia
  • the use of DYNARE
  • the structure of DSGE models,
  • preparing the database for DSGE models,
  • estimating and calibrating DSGE models,
  • introducing stochastic shocks,
  • introducing imperfect competition,
  • introducing price and wage rigidities,
  • implementing the model using MATLAB and DYNARE,
  • numerical solution methods,
  • impulse response functions,
  • formulating scenarios and running policy simulations,
  • reporting and interpreting the results.

Course Content

Session/DayLecture Topic Lab session
Module 1
Introduction to Dynare in Julia or Matlab

Hands on:

  • Introduction to Matlab/Julia
  • Key features of Dynare
Module 2
Real Business Cycle (RBC) model
-Brief theoretical review: Real Business Cycles
-Model with two “goods”: consumption and leisure
-Dynamic structure of consumption-savings
-Input markets
-The model
-Households
-Firms
-The model’s equilibrium conditions
-Steady state
-Log-linearization (Uhlig’s method)
-Productivity shock

Hands on:

  • Dynare Code in Julia
  • Compute Steady state
  • Solving Model

Simulating model

Module 3
Basic New-Keynesian (NK)model
-Brief theoretical review: New-Keynesians
-Differentiated Products and the Consumption Aggregator
-Firms in monopolistic competition
-Price stickiness
-The model
-Households
-Firms
-The model’s equilibrium condition
-Steady state
-Log-linearization (Uhlig’s method)
-Productivity shock

Hands on:

  • Dynare Code in Julia
  • Compute Steady state
  • Solving Model

Simulating model

Module 4
New-Keynesian model with wage stickiness
-Brief theoretical review: wage stickiness
-Why would wages be rigid in the short term?
-The model
-Households
-Firms
-The model’s equilibrium condition
-Steady state
-Log-linearization (Uhlig’s method)
-Productivity shock
-Is there an interpretation problem related to the assumption of the presence or absence of frictions in the model’s prices and wages?

Hands on:

  • Dynare Code in Julia
  • Compute Steady state
  • Solving Model

Simulating model

Module 5
Module 4: New-Keynesian model with habit formation and non-Ricardian agents 117
-Brief theoretical review: household rigidity
-Habit formation
-Non-Ricardian agents
-The model
-Households
-Firms
-The model’s equilibrium conditions
-Steady state
-Log-linearization (Uhlig’s method)
-Productivity shock
-Is there an interpretation problem related to the presence or absence of household frictions (habit formation and non-Ricardian agents)?

Hands on:

  • Dynare Code in Julia
  • Compute Steady state
  • Solving Model

Simulating model

POPULAR COURSES