Dynamic Economic Modeling
A.Y. 2025/2026
Learning objectives
This course is designed to provide a rigorous introduction to dynamic economic modeling. Its objectives are threefold: to equip students with the basic analytical tools to model intertemporal choices; to provide a coherent framework to understand macroeconomic fluctuations and policies; to endow students with an understanding of basic computational tools to solve and analyze dynamic macroeconomic models.
Expected learning outcomes
By the end of the course, students will be endowed with a coherent analytical framework to understand contemporary macroeconomic issues, such as recessions and crises, as well as numerical tools to simulate and understand the impact of economic shocks and policy interventions.
Lesson period: Third four month period
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course cannot be attended as a single course. Please check our list of single courses to find the ones available for enrolment.
Course syllabus and organization
Single session
Responsible
Lesson period
Third four month period
Course syllabus
Theoretical framework:
-Business-Cycle Measurement and Macroeconomic Theory
-Aggregate Demand (AD) and Aggregate Supply (AS)
-AD-AS Equilibrium and the Propagation of Macroeconomic Shocks
-Monetary and Fiscal Policy
Applied framework (time series data):
- Stationary ARMA Processes
- Unit Roots
- VAR and Structural Models
The programme may be subject to some year-to-year changes. Please check the ARIEL website for the updated programme.
-Business-Cycle Measurement and Macroeconomic Theory
-Aggregate Demand (AD) and Aggregate Supply (AS)
-AD-AS Equilibrium and the Propagation of Macroeconomic Shocks
-Monetary and Fiscal Policy
Applied framework (time series data):
- Stationary ARMA Processes
- Unit Roots
- VAR and Structural Models
The programme may be subject to some year-to-year changes. Please check the ARIEL website for the updated programme.
Prerequisites for admission
Students are expected to have fully mastered the following topics: linear algebra, intermediate calculus, static optimization and introductory econometrics. Students are expected to have a reasonable knowledge of topics taught in introductory and intermediate macroeconomics.
Teaching methods
The course uses both lectures in which students will be given a theoretical background and classes mainly devoted to solving exercises and coding.
Teaching Resources
Theoretical framework: E. Challe, Macroeconomic Fluctuations and Policies, MIT Press.
Applied framework: M. Verbeek, A Guide to Modern Econometrics, Wiley.
Slides and handouts will also be uploaded on the ARIEL website.
Applied framework: M. Verbeek, A Guide to Modern Econometrics, Wiley.
Slides and handouts will also be uploaded on the ARIEL website.
Assessment methods and Criteria
The final assessment is based on problem sets and a final written exam, consisting of exercises and/or open questions and/or multiple choices questions.
Professor(s)