Syllabus
For a detailed description see the attached PDF file "Course description".
1. Introduction and motivation
2. A classical monetary model
3. The basic New Keynesian model
4. A model with sticky wages and prices
5. A small open economy model
6. A small open economy model with frictional unemployment
7. Estimating DSGE models
8. Forecasting with DSGE models
Annotation
The course is intended for master students with orientation in economic modelling. The course will introduce dynamic stochastic general equilibrium (DSGE) models as well as the basic tools needed for their construction and implementation.
The course employs a practical and very intensive approach to model building. Students will build DSGE models step-by-step: from small to medium scale and from simple to complex structure. Students will acquire practical hands-on experience in building DSGE models which will allow them to build and implement their versions of DSGE models using Matlab and Dynare (or IRIS) toolbox.
The course consists of lectures and seminars. During the lectures, students will be introduced into the theoretical background of modelling and derivation of models. During the seminars, students will get an opportunity to implement acquired knowledge in MATLAB-based practice sessions. Moreover, several guest lectures will demonstrate the practical implementation of DSGE models in policy analysis.