While the theoretical development of DSGE models is not overly difficult to understand, practical application remains somewhat complex. The literature on this subject has some significant obscure points. This book can be thought of, firstly, as a tool to overcome initial hurdles with this type of modeling. Secondly, by showcasing concrete applications, it aims to persuade incipient researchers to work with this methodology. In principle, this is not a book on macroeconomics in itself, but on tools used in the construction of this sort of models. It strives to present this technique in a...
While the theoretical development of DSGE models is not overly difficult to understand, practical application remains somewhat complex. The literat...
Methodology usually irritates economists. They prefer to get on with the job and do structural economics. The term always means general equilibrium. The story is told of consumers and producers making choices about consumption, work, investment, and so on. The grand finale is clearing of all markets. The plot is essentially devoid of money and banking. The language, though, is flexible enough to incorporate these elements and post-financial crisis, the best minds have been hard at work stretching the script in order to do so.
We, on the other hand, hark back to another approach to...
Methodology usually irritates economists. They prefer to get on with the job and do structural economics. The term always means general equilibrium...