Introduction to Dynamic Macroeconomic General Equilibrium Models [Second Edition, Hardback]
by
José Luis Torres Chacon
University of Malaga, Spain
Hardback  Price: $55 / €50 / £40
2nd edition  Published on: September 2015
282pp  236mm x 160mm
Series: Vernon Series in Economic Methodology
Subject(s): Economics, Economic Methods, Macroeconomics
ISBN: 9781622730308
Availability: In stock
Find in a library near you
Other editions:
Paperback  $45  9781622730247
Download sample chapter
Printfriendly information sheet
add to cart
Summary
This book offers an introductory stepbystep course in Dynamic Stochastic General Equilibrium (DSGE) modelling. Modern macroeconomic analysis is increasingly concerned with the construction, calibration and/or estimation and simulation of DSGE models. The book is intended for graduate students as an introductory course to DSGE modelling and for those economists who would like a handson approach to learning the basics of modern dynamic macroeconomic modelling. The book starts with the simplest canonical neoclassical DSGE model and then gradually extends the basic framework incorporating a variety of additional features, such as consumption habit formation, investment adjustment cost, investmentspecific technological change, taxes, public capital, household production, nonricardian agents, monopolistic competition, etc. The book includes Dynare codes for the models developed that can be downloaded from the book’s homepage.
The second edition is identical to the first with the exception of a revised appendix to Chapter 2. The revised appendix can be downloaded free of charge in the accompanying downloads section.
Praise
"An impressive achievement. A book that all beginners to the topic should read, use and consult."
Prof. Fabio Canova
Pierre Werner Chair of Monetary Union, European University Institute
Accompanying download for this title
You can download software code for the models described in the book, using Dynare. Dynare is a freelyavailable, open source software platform for economic modeling, and can be downloaded from: http://www.dynare.org/
The following files are contained in the ZIP file available below (the number refers to the corresponding book chapter):
model2.mod: Canonical Dynamic General Equilibrium Models.
model3.mod: Habit persistence.
model4.mod: Ricardian and NonRicardian agents.
model5.mod: Investment adjustment costs.
model6.mod: Investmentspecific technological change.
model7a.mod: Taxes: Nonannounced permanent change in the consumption tax rate
model7b.mod: Taxes: Nonannounced transitory change in the consumption tax rate
model7c.mod: Taxes: Announced transitory change in the consumption tax rate
model8a.mod: Public spending: Permanent change in public consumption
model8b.mod: Public spending: Stochastic change in public consumption
model9.mod: Public capital.
model10.mod: Human capital.
model11.mod: Home production.
model12.mod: Monopolistic competition.
A revised appendix to Chapter 2 (as appears in the second edition) is also included.
download file
Author biography
José L. Torres is Associate Professor of Economics, Head of the Department of Economics, Faculty of Economics, University of Málaga (Spain). His current research areas include: Technological Change, Economic Growth, Dynamic General Equilibrium modelling. He has published several books and a large number of papers in journals as Information Economics and Policy, Public Choice, Macroeconomic Dynamics, Journal of Macroeconomics, Eastern European Economics, Empirical Economics, Economic Modelling, Open Economies Review, Economic Letters, Journal of International Financial Markets, Institutions and Money, SERIES, and Economic Issues.
Table of contents
PART I Introduction to DSGE modelling
Chapter 1
Introduction
Macroeconomic DSGE Modelling
DSGE software
Book organization
Bibliography
Chapter 2 The Canonical Dynamic Macroeconomic General Equilibrium model
Introduction
Households
Alternative functional forms for the utility function
The firms
Alternative functional forms of the production function
Model Equilibrium
Model Equilibrium(Competitive Equilibrium)
Model Equilibrium(Central Planning)
The Steady State
The Dynamic Stochastic General Equilibrium model
Equations of the model and calibration
Equilibrium equations
Calibration
Aggregate productivity shock
Conclusions
Bibliography
PART II Deviations from the Permanent IncomeLife Cycle hypothesis
Chapter 3 Habit Formation
Introduction
Habit formation
The model
Households
The firms
Equilibrium
Equations of the model and calibration
Total Factor Productivity shock
Conclusions
Bibliography
Chapter 4 NonRicardian Agents
Introduction
Ricardian and NonRicardian Agents
The model
Ricardian Households
NonRicardian Households
Aggregation
The firms
Equilibrium of the model
Equations of the model and calibration
Total Factor Productivity shock
Conclusions
Bibliography
PART III Investment and Capital Accumulation
Chapter 5 Investment adjustment costs
Introduction
Investment adjustment costs
The model
Households
The firms
Equilibrium of the model
Equations of the model and calibration
Total Factor Productivity Shock
Conclusions
Bibliography
Chapter 6 InvestmentSpecific Technological Change
Introduction
Investmentspecific technological change
The model
Households
The firms
Equilibrium of the model
The balanced growth path
Equations of the model and calibration
InvestmentSpecific Technological shock
Conclusions
Bibliography
PART IV The government
Chapter 7 Taxes
Introduction
Taxes
The model
Households
The firms
The government
Equilibrium of the model
Equations of the model and calibration
The Laffer curve
Taxes changes
Total Factor Productivity shock
Conclusions
Bibliography
Chapter 8 Public Spending
Introduction
Public spending
The model
Households
The firms
The government
Equilibrium of the model
An alternative functional form for aggregate consumption
Equations of the model and calibration
Public consumption change
Conclusions
Bibliography
Chapter 9 Public Capital
Introduction
Public capital
The model
Households
Firms
The government
Equilibrium of the model
Equations of the model and calibration
Public investment shock
Conclusions
Bibliography
PART V Time Decisions
Chapter 10 Human Capital
Introduction
Human Capital
The Model
Households
Firms
Equations of the model and calibration
Total Factor Productivity shock
Conclusions
Bibliography
Chapter 11 Home Production
Introduction
Home Production
The model
Households
The goods market sector
Home production sector
Household’s maximization problem
Equilibrium of the model
Equations of the model and calibration
Total Factor Productivity shock
Conclusions
Bibliography
PART VI Imperfect competition
Chapter 12 Monopolistic Competition
Introduction
Monopolistic Competition
The model
Households
The firms
Equilibrium of the model
Equations of the model and calibration
Total Factor Productivity Shock
Conclusions
Bibliography
Index
Scholarly works citing this title
Number of Google Scholar citations: 1
See in Google ScholarPage last updated on: September 29th 2016. All information correct at the time, but subject to change.
most common words in this title:
RELATED TITLES

Title: Economic Growth [Hardback edition]
Author(s): Edward A. Hudson 
Title: Introduction to Dynamic Macroeconomic General Equilibrium Models [Second Edition, Paperback]
Author(s): José Luis Torres Chacon 
Title: Understanding DSGE models [Hardback]
Author(s): Celso Jose Costa Junior