Quantitative Dynamic Macroeconomics  

Quantitative Dynamic Macroeconomics (Growth & Development) (MSc)

Dozent: Prof. Dr. Thomas Steger
Termin: Montag, 13.15 - 14.45 Uhr
Unterrichtssprache: Englisch
: Rechnerpool 2 - IZ03, Fakultätsrechenzentrum, Grimmaische Straße 12

Diese Veranstaltung ist Bestandteil des Moduls "Growth & Development". Die Modulprüfung umfasst zwei Teile: (1) Eine Klausur, die sich auf beide Vorlesungen (Economic Growth, Economic Development) bezieht. (2) Ein Projekt im Rahmen der Veranstaltung "Quantitative Dynamic Macroeconomics".


1. An Introduction to Mathematica (nb; pdf)
2. Static Macroeconomic Models

2.1. A basic model with endogenous capital and labor (nb; pdf)
2.2. Human capital and education (nb; pdf)
2.3. Research and development
3. Dynamic Macroeconomic Models

3.1. Solow model (analytical solution, linearization, "shooting", relaxation) (nb; pdf)
3.2. Ramsey model (linearization, backward integration, relaxation) (nb; pdf)
3.3. Economic growth with subsistence consumption (nb; pdf)
3.4. R&D-based economic growth (nb; pdf)
3.5. Education and economic growth (nb; pdf)
3.6. Growth under an exhaustible resource (nb; pdf)

Project topics

1. Growth accounting (November 13th, 2010). Decompose the average annual growth rate of real GDP in Germany (distinguish between East and West?) between 1990 and 2010 into the components that can be attributed to the different supply side components (Sebastian Böhm).
2. Growth regression (November 8th, 2010). Explain the average annual growth rate of real GDP per capita for a sample of economies by a list of plausible explanatory variables (Franziska Kohl).
3. Model calibration (November 22th, 2010). Calibrate the neoclassical growth model for Germany and for the USA. For Germany use data between 1980 and 1990, assuming that Germany grew along a balanced growth path during this period. For the USA use data between 1990 and 2000, assuming that the USA grew along a balanced growth path during this period (Thomas Steger).
4. Model simulation (1) (November 22th, 2010). Assume that utility is subject to subsistence considerations. Assume further that the economy starts out with a stock of capital slightly above the subsistence level. How does the process of macroeconomic development look like? (Thomas Steger) (pdf)
5. Model simulation (2) (December 6th, 2010). Illustrate the time path of economic development assuming that both physical capital and a non-renewable resource are an essential input in production. To simplify, assume that the saving rate is constant. Distinguish between balanced growth and out of balanced growth (Stefan Egle).
6. Model simulation (3) - difficult (January 17th, 2011). Consider a small open economy under capital adjustment costs. Assume that crude oil is an input in production. What are the short run and long run consequences for major macroeconomic variables in response to an oil price shock? (Thomas Steger)


(1) Abell, M. and J. Braselton, Differential Equations With Mathematica, 2004, Elsevier.
(2) Gräbe and Kofler, Mathematica - Einführung, Anwendung, Referenz, 5. Auflage, 2007, Pearson.
(3) Huang, C.J. and P.S. Crooke, Mathematics and Mathematica for Economists, Blackwell Publisher, 1997
(4) Jankowski, M., Programming with Mathematica, Lecture Notes, 1998.
(5) Varian, H., Mathematica for Economists, Handbook of Computational Economics, Vol. 1, H. M. Amman, D. A. Kendrick and J. Rust (eds.), Elsevier Science 1996, Chapter 11.
(6) Weiß, Christian H., Mathematica, Eine Einführung, 2. Auflage, in deutsch, Dezember 2008, RRZN-Handbücher, Universität Hannover.


More information on the relaxation procedure can be found here
Calibration strategy: Ramsey model (nb)
Article (in German) on Hysteresis (pdf)
A basic RBC model (nb, explanations)
A dynamic AS-AD Model (nb)

letzte Änderung: 15.08.2012