An Introduction to Computational Macroeconomics (Economic Methodology)

✍ Scribed by Anelí Bongers, Trinidad Gómez, José Luis Torres Chacon

• Publisher: Vernon Press
• Year: 2020
• Tongue: English
• Leaves: 320
• Edition: Illustrated
• Category: Library

✦ Synopsis

This book presents an introduction to computational macroeconomics, using a new approach to the study of dynamic macroeconomic models. It solves a variety of models in discrete time numerically, using a Microsoft Excel spreadsheet as a computer tool. The solved models include dynamic macroeconomic models with rational expectations, both non-microfounded and microfounded, constituting a novel approach that facilitates the learning and use of dynamic general equilibrium models, which have now become the principal tool for macroeconomic analysis. Spreadsheets are widely known and relatively easy to use, meaning that the computer skills needed to work with dynamic general equilibrium models are affordable for undergraduate students in Advanced Macroeconomics courses.

✦ Table of Contents

Table of Contents
Preface
Part I: Basic Dynamic Systems
1. An introduction to computational dynamic systems
2. The dynamic IS-LM model
3. Exchange rate overshooting
Part II: Introduction to Macroeconomic Dynamic General Equilibrium
4. The consumption-saving optimal decision
5. The consumption-saving decision and the consumption-leisure decision
6. The government and the fiscal policy
7. The firm and the investment decision: The Tobin’s Q model
8. The basic dynamic general equilibrium model
Part III: Economic growth
9. The neoclassical model of exogenous growth
10. Ramsey's optimal growth model
Appendices
Appendix A: Some mathematical concepts
Appendix B: An example of a dynamic system in MATLAB
Appendix C: The arms race model in DYNARE
Appendix D: The dynamic IS-LM model in MATLAB
Appendix E: The dynamic IS-LM model in DYNARE
Appendix F: The overshooting model of the exchange rate in DYNARE
Appendix G: The consumption-saving decision in MATLAB
Appendix H: The Newton-type algorithm
Appendix I: The consumption-saving and consumption-leisure decision in MATLAB
Appendix J: The consumer problem with taxes in MATLAB
Appendix K: The Tobin Q model in DYNARE
Appendix L: The dynamic general equilibrium model in MATLAB
Appendix M: The dynamic general equilibrium model in DYNARE
Appendix N: Solution of the Dynamic Stochastic General Equilibrium (DSGE) model
Appendix O: The neoclassical growth model in MATLAB
Appendix P: Ramsey's model in DYNARE
Index