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

• analyze macroeconomic models with heterogeneous agents and to solve them numerically
• calibrate/estimate a model based on empirical evidence
• carry out stochastic simulations of the model
• simulate counterfactual experiments
• write a Master thesis in Macroeconomics

• Documentation of empirical facts regarding inequality (income, wealth, etc.)
• Dynamic programming: Theory and Practical use
• Income fluctuation problem (partial equilibrium model)
• Standard incomplete markets model (general equilibrium model)
• Numerical methods: Value function iteration, Monte Carlo simulation, Calibrattion

• Interactive lecture with active participation and discussion by participants
• Practical implementation of numerical algorithms in problem sets (group work possible)
• Diskussion of solution to homeworks in tutorial classes

The course syllabus can be downloaded here:

http://jsiassi.de/nsiassi/Syllabus_Inequality_in_Macro_2021.pdf

The final grade is based on the solution to the problem sets (30%) and a final project (70%)

The final project consists of a presentation of a paper from the literature and a (partial) replication of the numerical results.

• Students should have completed intermediate courses in microeconomics and macroeconomics
• Previous knowledge with dynamic economic models is beneficial but not absolutely necessary
• Since the course will be centered around computational work, having some experience with programming is advantageous
• We will work with MATLAB throughout this course. Student who have not worked with MATLAB before or need to refresh their knowledge, please consult a tutorial guide before the course (I can provide some practice exercises upon request)
• TU students can get a free licensed MATLAB copy from the TU Wien webpage: http://www.sss.tuwien.ac.at/sss/mla/