Theory of determining national income, employment, inflation, and interest rates. Issues of economic fluctuations, economic growth, and monetary and fiscal policy.
Econ 581 students will be able to
- Acquire a toolset for analyzing modern macroeconomic models.
- Demonstrate an understanding of basic dynamic stochastic general equilibrium (DSGE) macroeconomic modeling, including:
- How to set up a model.
- How to render it stationary, if necessary.
- How to solve for the model's steady state both analytically and numerically.
- How to solve for the model's dynamics using various numerical techniques.
- How to calibrate the model.
- How to simulate the model economy.
- How to generate impulse response functions.
- How to generate data moments.
- How to estimate model parameters using simulated method of moments
- Use MATLAB and Dynare, software packages widely used in macroeconomic model simulation.
- Demonstrate an understanding of other macroeconomic models, such as:
- Overlapping generations (OLG) models.
- Continuous-time Ramsey-style models.
- Estimate and interpret structural vector autoregression (SVAR) empirical models.
- Demonstrate an understanding of current issues being addressed in macroeconomics research.
- Be prepared to perform well in the macroeconomics classes in the top Ph.D. programs in economics.