105.687 AKVWL Dynamic Macroeconomic Modelling
This course is in all assigned curricula part of the STEOP.
This course is in at least 1 assigned curriculum part of the STEOP.

2020S, VU, 2.0h, 3.0EC


  • Semester hours: 2.0
  • Credits: 3.0
  • Type: VU Lecture and Exercise

Learning outcomes

After successful completion of the course, students are able to...

  • numerically solve a wide range of determistic and stochastic macroeconomic models (DSGE),
  • calibrate a model to empirical data,
  • quantify the effects of fiscal policy and interpret them economically,
  • write a master thesis in the field of macroeconomics.

Subject of course

Part I: The deterministic neoclassical growth model

  • Model description and definition of equilibrium
  • Solution using the Lagrangian approach
  • Difference equations: solution and dynamics of linear DE, linearization and local dynamics of nonlinear DE
  • Computational implementation: calibration, solution using Stacked Newton method
  • Project: Fiscal policy in the deterministic neoclassical growth model

Part II: The stochastic neoclassical growth model

  • Model description and solution using dynamic programming
  • Stochastic difference equations: Impulse Response Functions, linearization and certainty equivalence
  • Computation implementation: solving DSGE models using linearization and with Dynare
  • Project: Policy analysis in a DSGE model using Dynare

Teaching methods

Presentation combined with interactive work in Matlab'
Introduction to Dynare
Presentation of sample solutions for the projects

Mode of examination


Additional information

The course is split into two parts. Each part consists of several classroom sessions followed by a project that must be worked out independently.

For further information see http://www.econ.tuwien.ac.at/mkerndler/downloads/dynmod_syllabus_ss2020.pdf



Course dates

Mon13:00 - 14:0002.03.2020Sem.R. DA grün 02 B Initial Meeting
Mon12:00 - 14:0009.03.2020Sem.R. DB gelb 04 Lectures
Mon12:00 - 14:0016.03.2020 - 29.06.2020 Zoom (LIVE)Classroom sessions
AKVWL Dynamic Macroeconomic Modelling - Single appointments
Mon02.03.202013:00 - 14:00Sem.R. DA grün 02 B Initial Meeting
Mon09.03.202012:00 - 14:00Sem.R. DB gelb 04 Lectures
Mon16.03.202012:00 - 14:00 ZoomClassroom sessions
Mon23.03.202012:00 - 14:00 ZoomClassroom sessions
Mon30.03.202012:00 - 14:00 ZoomClassroom sessions
Mon27.04.202012:00 - 14:00 ZoomClassroom sessions
Mon04.05.202012:00 - 14:00 ZoomClassroom sessions
Mon11.05.202012:00 - 14:00 ZoomClassroom sessions
Mon18.05.202012:00 - 14:00 ZoomClassroom sessions
Mon25.05.202012:00 - 14:00 ZoomClassroom sessions
Mon08.06.202012:00 - 14:00 ZoomClassroom sessions
Mon29.06.202012:00 - 14:00 ZoomClassroom sessions

Examination modalities

The grade is based on two projects, which have to be worked out independently during the semester.

Course registration

Begin End Deregistration end
16.01.2020 14:00 09.03.2020 14:00 26.04.2020 23:59



No lecture notes are available.

Previous knowledge

Prior knowledge of dynamic economic models (in particular the Ramsey growth model) is advantageous but not necessary. The computational implementation of the projects should be done in MATLAB. Students who have never worked with MATLAB before or have not used it for a while, are expected to go though an introductory guide before (a reference is provided in the detailed syllabus on the TUWEL site of this course).