AØKA08207U Summerschool 2016: Theoretical and Empirical Foundations of DSGE Modeling (F)

Volume 2015/2016
Education

MSc in Economics
The course is part of the Financial line symbolized by "F".

Content

We will focus on the construction, solution and empirical validation of dynamic stochastic general equilibrium (DSGE) macroeconomic models. The first week of the course will be centered around the formulation and solution of DSGE models. We will first review the baseline structure of the Real Business Cycle model and the New Keynesian model. We will next consider some recent extensions to these baseline settings. There will be afternoon classes designed to acquaint participants with the numerical analysis of DSGE models. During the second week there will be lectures and classes aimed at reviewing various methods employed to validate DSGE models. Finally, a guest lecture will be provided by Jesper Pedersen (Danmarks Nationalbank), on the structure and estimation of the DSGE model of the Danish economy.

Learning Outcome

After the course the student should:
- Have knowledge of the key building blocks of dynamic stochastic general equilibrium (DSGE) models.
- Be able to formulate, solve and analyze small-scale DSGE models.
- Be able to interpret formal results obtained from the analytical and numerical analysis of DSGE models, reporting them in economic and intuitive terms.
- Be able to perform monetary policy analysis in the baseline New Keynesian model.
- Have knowledge of the main empirical methodologies used to validate DSGE models.
- Have a basic understanding of how DSGE models are implemented for both business cycle and normative analyses at modern monetary institutions.

Syllabus:

The course will cover topics taken from the following two textbooks: 1. Jordi Galí (2015): Monetary Policy, Inflation, and the Business Cycle. Second Edition, Princeton University Press. 2. Carl. E. Walsh (2010): Monetary Theory and Policy. Third Edition, The MIT Press. In addition, some recent research articles will be studied. Slides and these articles will be made available at the course webpage.

BSc of Economics.
It is strongly recommended that Macro III has been followed prior to taking the summerschool.
Familiarity with intertemporal optimization, the analysis of static and dynamic systems under rational expectations and basic multivariate econometrics.
Lectures and exercises.
Schedule:
3 hours of lectures 9.00-12.00 and 2 hours of exercise classes 14.00-16.00 every working day.

Timetable and venue:
To see the time and location of classroom please press the link under "Se skema" (See schedule) at the right side of this page.

You can find the similar information partly in English at
https:/​/​skema.ku.dk/​ku1516/​uk/​module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-B5-5F16; [Name of course]””
-Select Report Type: List
-Select Period: “Forår/Spring – Weeks 4-29”
Press: “ View Timetable”
  • Category
  • Hours
  • Class Exercises
  • 20
  • Exam
  • 24
  • Lectures
  • 30
  • Preparation
  • 132
  • Total
  • 206
Credit
7,5 ECTS
Type of assessment
Written assignment, 7 days
The exam is a 7 days take-home assignment. The exam assignment is given in English and must be answered in English.
Exam registration requirements

Full participation at the summerschool is mandatory and the student must actively participate in all activities.

Aid
All aids allowed
Marking scale
7-point grading scale
Censorship form
External censorship
100 % censurship
Exam period

16.th of July from 12 AM to 23.th of July 2016 12 AM

For enrolled students more information about examination, exam/re-sit, rules etc. is available at the student intranet for Examination (English) and student intranet for Examination (KA-Danish).

Re-exam

Same as the ordinary exam.

If only a few students have registered for the re-exam, the exam might change to an oral exam including the date for the exam, which will be informed  by the Examination Office.

Criteria for exam assesment

The student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.