Summer School—EEG, Universidade do Minho, Braga, Portugal

Economic Policies Research Unit—NIPE

Course description 

 

 

 

 

The 9th NIPE Summer School will take place from the 20th to the 22nd of June at the University of Minho, Escola de Economia e Gestão, Braga, Portugal.

The Course begins on Wednesday, the 20th, at 8h30 for registration.

The lectures will take place from Wednesday, the 20th, to Friday, the 22nd, from 9h00 to 17h00. There will be refreshments from 9h00 to 9h30, a 30 minutes coffee-break at 11h and a 60 minutes lunch at 13h. In the afternoon the coffee-break is at 15h30.

The three-day course focuses on a seamless methodology for construction, estimation and policy analysis of macroeconomics, summarized by the following steps.

1 The construction of a DSGE (Dynamic stochastic general equilibrium) model describing the first-order conditions for economic agents in the form of a set of non-linear difference equations

2 The solution of the steady state to be used for both solution and calibration

3 Bayesian estimation methods

4 Model comparisons between different models or variants of the same model

5 Model validation by comparison with second moments and a benchmark DSGE-VAR

6 Optimal policy analysis

Thus, we show that the main features of New Keynesian (NK) Dynamic Stochastic General Equilibrium (DSGE) models consist of a `Real Business Cycle' (RBC) core, with an outer shell that includes nominal rigidities and other frictions. We then discuss how to take these models to the data, focusing on empirical implementations based on Bayesian system estimation methods. This is a hands-on course all based on existing facilities in the software platform Dynare (see Adjemian et al. (2011) and other useful documentation available on their website www.dynare.org). The mornings will be devoted to lectures and the afternoons to laboratory sessions.

9^thSummer School—EEG, Universidade do Minho, Braga, Portugal

Economic Policies Research Unit—NIPE