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

Please note that due to the COVID situation the format of the course may change to online mode!

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/