Wirtschaftswissenschaftliche Fakultät

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Computational Macroeconomics


Lecturer: Prof. Dr. Maußner
Date: see timetable
Building/Room: see timetable


Abstract:

This course deals with the determinants of economic growth, the causes of business cycles and the distribution of income and wealth. The standard tool concerning the analysis of these questions is the Ramsey model. In this model consumer demand and labor supply are the result of an inter-temporal decision-making problem and are coordinated with the plans of the firms through markets. Therefore it is a dynamic general equilibrium model, which commonly is too complex to allow for a simple analytical solution. Hence the analysis of the model is often based on computer simulations. In the first part of the course the student is presented the basic knowledge for approximate solutions of models with the help of computer algorithms. The students are told how to compute and analyze their own dynamic general equilibrium models. The second part of the course concentrates on the introduction of models, which allow the analysis of a variety of questions from the area of business cycles, labor markets, monetary policy and international macroeconomics. In this part the student should further improve the methodological knowledge learned before as well as get an overview over the current topics in macroeconomic research.


Content:

  1. Methodology
    1. Ramsey's model
    2. Basics in GAUSS
    3. Solving DSGE models with GAUSS
  2. Applications
    1. Real business cycle (RBC) theory
    2. Dynamic labor markets
    3. Monetary policy
    4. International macroeconomics
    5. Trends and cycles


Literature:

Acemoglu, Daron, Introduction to Modern Economic Growth, Princeton University Press, Princeton 2009

Galì, J., Monetary Policy, Inflation, and the Business Cycle, Princeton University Press, Princeton and Oxford 2008

Heer, Burkhard and Alfred Maußner, Dynamic General Equilibrium Modelling, 2nd Ed, Springer, Berlin 2009

Ljungqvist, Lars and Thomas Sargent, Recursive Macroeconomic Theory, 2nd Ed., MIT Press, Cambridge (MA) and London 2004

McCandless, George, The ABCs of RBCs, Harvard University Press, Cambridge MA 2008

Stachurski, John, Economic Dynamics, MIT Press, Cambridge (MA) 2009


More information:

Recommended semester: Master
Field of study: Master iVWL; Diplom iVWL: Cluster
Duration: 2 SWS
Type: V - Vorlesung
Semester: WS 2017/18