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Introduction to Dynamic Macroeconomic General Equilibrium Models
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eBook - ePub
Introduction to Dynamic Macroeconomic General Equilibrium Models
About this book
This book offers an introductory step-by-step 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 hands-on 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, investment-specific technological change, taxes, public capital, household production, non-ricardian 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.
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Yes, you can access Introduction to Dynamic Macroeconomic General Equilibrium Models by José Luis Torres Chacon in PDF and/or ePUB format, as well as other popular books in Economics & Macroeconomics. We have over one million books available in our catalogue for you to explore.
Information
Copyright © 2016 (Second Edition) by Vernon Press on behalf of the author.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Vernon Art and Science Inc.
l. 75Vernon Press is an imprint of Vernon Art & Science Inc.
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Library of Congress Control Number: 2014932232
l. 91Vernon Series in Economic Methodology, www.vernonpress.com
l. 93Revised Edition, ISBN: 978-1-62273-045-2
l. 97Product and company names mentioned in this work are the trademarks of their respective owners. While every care has been taken in preparing this work, neither the authors nor Vernon Art and Science Inc. may be held responsible for any loss or damage caused or alleged to be caused directly or indirectly by the information contained in it.
l. 100Part I
Introduction to DSGE modelling
l. 211Part II
Deviations from the Permanent Income-Life Cycle hypothesis
l. 3394Part III
Investment and Capital Accumulation
l. 4998Part IV
The government
l. 6476Part V
Time Decisions
l. 9258Part VI
Imperfect competition
l. 10687Chapter 12
Monopolistic Competition
12.1 Introduction
l. 10692In the models developed in previous chapters we have assumed the existence of perfect competition in goods and input markets. This is a central assumption of the neoclassical approach. This resulted in market prices that are equal to the marginal cost of production, zero profits for firms and a price for the productive factors equal to their marginal productivity. This is a key assumption of the standard neoclassical model driving the economy to the so-called competitive general equilibrium. In this chapter we relax the perfect competition assumption, introducing imperfect competition in the DSGE model, which is a fundamental part of New Keynesian models.
l. 10703 Here we consider the existence of imperfect competition in the production sector (imperfect competition can also be introduced in the labor market). This change does not alter the structure of the model in relation to the behavior of households, but represents a major change to the structure of the production sector of the economy. Now the problem for the firms becomes more complex and it is necessary to introduce two types of goods: a final good and a differentiated intermediate good produced in a monopolistic competition market environment. Imperfect competition occurs in the intermediate goods sector. Differentiated intermediate goods are combined later into a final good, which is traded in an environment of perfect competition.
l. 10716 The final structure of the model is virtually identical to the standard DSGE model, except that now the prices of production factors depend on ...
Table of contents
- I Introduction to DSGE modelling
- II Deviations from the Permanent Income-Life Cycle hypothesis