Modern DSGE models
What you will learn
In this series of tutorials and videos, I will cover the theoretical foundations of modern DSGE models. I will focus on several popular DSGE models and discuss both the underlying economic theory but also the mathematical steps to get the model equations we need for Dynare. Finally, we’ll make intensive use of Dynare’s preprocessing capabilities when creating the corresponding mod files.
This tutorial covers the math of deriving the nonlinear model equations of a basic New Keynesian model with a linear production function and nominal price rigidities a la Calvo.
This tutorial covers the theory and derivations of the Real-Business-Cycle (RBC) model with leisure. The Dynare implementation makes use of model local variables to distinguish between a log-utility function and a more general CES-utility function.