Day 1: Introduction to DSGE modeling

Introduction to Dynare (and Matlab)

Ramsey model

Hands on:

Calibrating the model, to match steady state ratios and growth rates of endogenous and exogenous variables.

Simulating the deterministic model.

Day 2: Stochastic Ramsey (or RBC) model

Solution methods for stochastic models.

Discussing stability and determinacy of the solution (Blanchard Kahn Conditions)

Hands on:

Using the model for the analysis of temporary and permanent technology and fiscal policy shocks.

Day 3: Basic DSGE model

Introducing imperfect competition

Introducing price and wage rigidities

Introducing monetary policy with a ZLB constraint

Hands on:

Implementing the new features into the model

Analyzing the model response to supply and demand shocks with different Taylor rules and ZLB constraint.

Day 4: Extending the basic model

Introducing habit formation

Introducing non-Ricardian households with liquidity constraints

Introducing government debt and debt rules.

Hands on:

Implementing fiscal rules, incl. debt rule into the model code and adjust calibration

Simulating fiscal policy shocks under a Taylor rule with and without ZLB constraint.

Day 5: Further extensions and estimation

Introducing adjustment costs

Introducing financial frictions

Bayesian estimation in Dynare

Hands on:

Estimating the model

Analyzing shock decompositions