Introduction to Computational Macroeconomics
by Anelí Bongers (Universidad de Málaga, Spain)
This book presents an introduction to computational macroeconomics, using a new approach to the study of dynamic macroeconomic models. For this we will solve a great variety of models in discrete time numerically, using as a computer tool a Microsoft Excel spreadsheet. The solved models include both dynamic macroeconomic models with rational, non-microfounded expectations and microfounded models, constituting an approach that facilitates the learning and use of dynamic general equilibrium models, which have become the primary tool for macroeconomic analysis nowadays. Spreadsheets are widely known and relatively easy to use, which means that the computer skills needed to work with dynamic general equilibrium models are affordable for undergraduate students.
PART I: BASIC DYNAMIC SYSTEMS
1. An introduction to computational dynamic macroeconomics
2. The dynamic IS-LM model
3. The overreaction model of the exchange rate
PART II: INTRODUCTION TO THE DYNAMIC GENERAL BALANCE
4. The consumption-savings decision
5. The consumption decision -saving and consumption-leisure
6. Government and fiscal policy
7. Companies and investment decision: The Tobin Q model
8. The basic model of dynamic general equilibrium
PART III: ECONOMIC GROWTH
9. The neoclassical growth model
10. The Ramsey model
Anelí Bongers is an Interim Substitute Professor in the Department of Theory and Economic History of the University of Málaga (Spain). Having received a PhD in Economics from the University of Malaga, her fields of research are mainly focused on technological change, human capital, and economic growth. She has published in journals such as Research Policy, PlosOne, and Technological Forecasting and Social Change.
Trinidad Gómez is a University Professor in the Department of Applied Economics (Mathematics) at the University of Málaga (Spain), where she has been teaching Mathematics and Operations Research for several years. With a PhD in Economics and Business Administration from the University of Malaga, her main lines of research are focused on solving real problems in the field of Economics and Business, taking into account economic, social and environmental aspects. She has participated in regional, national and international competitive projects, as well as contracts with the Public Administration. She is the author of numerous publications in magazines, book chapters, books, and has reviewed works for national and international journals. Besides, she has attended more than a hundred national and international conferences.
José L. Torres is Professor of Fundamentals of Economic Analysis in the Department of Theory and Economic History of the University of Málaga (Spain). His current research areas include technological change, economic growth, and stochastic dynamic general equilibrium models. He has published several books and a large number of articles in journals such as Research Policy, Technological and Economic Development of Economy, Review of Economic Dynamics, Information Economics and Policy, Public Choice, Macroeconomic Dynamics, Journal of Macroeconomics, Eastern Europe Economics, Empirical Economics, Economic Modeling, Open Economies Review, Journal of International Financial Markets, Institutions and Money, and SERIES, among others.
Macroeconomics, computational macroeconomics, dynamic general equilibrium models