Dynamic Economic Modeling
A.Y. 2024/2025
Learning objectives
This course is designed to provide a rigorous introduction to dynamic economic modeling. Its objectives are threefold: to equip students with the basic analytical tools to model intertemporal choices; to provide a coherent framework to understand macroeconomic fluctuations and policies; to endow students with an understanding of basic computational tools to solve and analyze dynamic macroeconomic models.
Expected learning outcomes
By the end of the course, students will be endowed with a coherent analytical framework to understand contemporary macroeconomic issues, such as recessions and crises, as well as numerical tools to simulate and understand the impact of economic shocks and policy interventions.
Lesson period: Third trimester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
Third trimester
Course syllabus
Introduction to dynamics: 2-period model
- Endowment economy
- Production economy
Methods and models of modern macroeconomics
- T-period model and infinite horizon
- Solution methods: value function iteration, perturbation and introduction to Dynare
- Towards General Equilibrium models: a simple RBC model
The programme may be subject to some year-to-year changes. Please check the ARIEL website for the updated programme.
- Endowment economy
- Production economy
Methods and models of modern macroeconomics
- T-period model and infinite horizon
- Solution methods: value function iteration, perturbation and introduction to Dynare
- Towards General Equilibrium models: a simple RBC model
The programme may be subject to some year-to-year changes. Please check the ARIEL website for the updated programme.
Prerequisites for admission
Students are expected to have fully mastered the following topics: linear algebra, intermediate calculus, static optimization. Students are expected to have a reasonable knowledge of topics taught in introductory and intermediate macroeconomics. Basic knowledge of dynamical systems (discrete time) and of dynamic optimization is useful.
Teaching methods
The course uses both lectures in which students will be given a theoretical background and classes mainly devoted to solving exercises and coding.
Teaching Resources
Slides and handouts will be uploaded on the ARIEL website.
Assessment methods and Criteria
The final assessment is based on problem sets and a final written exam, consisting of exercises and/or open questions and/or multiple choices questions.
Professor(s)