## Department of Economics # Harris Dellas

## Workshop in Advanced Macroeconomics

### Class Notes

Business cycle facts and review of business cycle theories

Note 1

Note 2 - continuation of Note 1

Tools (for a comprehensive introduction compare the "Basics on RBC modelling" section below)

Difference equations

Linearization (pp. 1-7) and numerical solution (pp. 7-11)

How RBC theorists measure success

Calibration

Applications

RBC model with fixed labour supply (example 1): see "Basics on RBC modelling" section below.

Baseline RBC model with labour-leisure choice (example 2): see "Basics on RBC modelling" section below.

Example 3

Example 4

### Basics on RBC modelling

Basic facts and concepts

Stylized facts of real aggregate activity

Figures

The one-good, one-shock RBC model

Figures

A primer on asset pricing

General procedure for solving RBC models

Dynamic optimization: A tool kit

MATLAB guide

Model library (examples)

Monte Carlo experiments: Introduction

RBC model with exogenous leisure

M. Wälti (2002), Solving linear rational expectations models

MATLAB: rbcfixFa.m

F. Collard (undated manuscript), Solving the Solow Model by Linear Approximation

MATLAB: rbcfix.m

MATLAB: hpmat.m

RBC model with endogenous leisure

MATLAB: rbc.m

MATLAB: hpmat.m

RBC model with endogenous leisure and government expenditures

H. Dellas (2002), The basic RBC model

MATLAB: hpmat.m

Helpful articles and textbook chapters

Uhlig (1997), A toolkit for analyzing nonlinear dynamic stochastic models easily

Collard (1998), Le modèle canonique des cycles réels. Manuscript

Cooley and Prescott (1995), Economic growth and business cycle facts, in: Cooley, ed., Frontiers of business cycle research, Princeton University Press

King and Rebelo (1999), Resuscitating real business cycles, in: Taylor and Woodford, eds., Handbook of Macroeconomics, Volume 1, 926-100

King, Plosser, and Rebelo (1988), Production, growth and business cycles: I. The basic neoclassical model, Journal of Monetary Economics 21, 195-232

King, Plosser, and Rebelo (1987), Production, growth and business cycles: Technical Appendix

McCallum (1989), Real business cycle models, in Barro, ed., Modern business cycle theory, Blackwell, pp. 17-50