Book
Dynamic Stochastic General Equilibrium Models
Real Business Cycles Models: Closed and Open
Economy
By Hamilton Galindo Gil & Alexis Montecinos Bravo & Marco Ortiz Sosa
An Overview
This book aims to guide students, step by step, in developing and solving DSGE (Dynamic Stochastic General Equilibrium) models. It covers not only the technical and conceptual aspects but also the simulation process for each model. While there are excellent books in the literature addressing various aspects of DSGE models, they often lack a step-by-step approach to model construction due to the richness of the subject and space constraints. This book seeks to bridge that gap to some extent.
Book’s features
Three features of this book are worth highlighting:
- It attempts to perform all the algebra associated with each model.
- Each model developed in each chapter has been placed in Dynare.
- The models considered are toy models in the closed and open economy.
Content
- Chapter 1. An overview of RBC models (Codes)
- Chapter 2. Dynare foundations: solving and simulating DSGE models. (Codes)
- Chapter 3. RBC model with analytical solution (Codes)
- Chapter 4. RBC model with constant labor (Codes)
- Chapter 5. RBC model with variable labor (Codes)
- Chapter 6. RBC model with shock to investment and variable use of capital (Codes)
- Chapter 7. Small Open Economy RBC (Codes)
- Chapter 8. Non-Tradable Goods in a Small Open Economy RBC (Codes)