Computational Macroeconomics
LinkEconomics
484
| Spring, 2019
This course provides a more in depth look into quantitative methods used in contemporary macroeconomic
analysis. We will cover numerical methods used in dynamic optimization. In practice, we will apply these
methods to solve two major models used in macroeconomic analysis, using both Excel and Matlab. The
Neoclassical Growth Model and its variants are used to study aggregate trends and aggregate effects of
government policy. The lifecycle model is used to examine questions involving decision-making over the
lifecycle. We will learn how to use empirical observations for the purpose of calibrating model parameters
and how to conduct policy evaluation in the context of calibrated models. Our policy evaluation will focus on
fiscal policy (taxes) and social security issues.