Skip to main content

Solving dynamic models: Theory and Applications

Objective

The computation of equilibria in dynamic stochastic general
equilibrium models with heterogeneous agents has become
increasingly important in macroeconomics and public
finance. For a given example-economy, i.e. a given specification of
preferences, technologies and market-arrangements these methods
compute an (approximate) equilibrium and allow for quantitative
statements about one equilibrium of the example-economy.
Through these so-called 'computational experiments'
many economic insights can be obtained by analyzing
quantitative features of realistically calibrated models.
Unfortunately, economists often use ad hoc computational methods
with poorly understood properties that produce approximate solutions
of unknown quality.
The research-project outlined in this proposal
has three goals: Building theoretical foundations
for analyzing dynamic equilibrium models, developing efficient and stable
algorithms for the computation of equilibria in large scale models and
applying these algorithms to macroeconomic policy analysis.

Field of science

  • /social sciences/economics and business/economics/macroeconomics

Call for proposal

ERC-2011-StG_20101124
See other projects for this call

Funding Scheme

ERC-SG - ERC Starting Grant

Host institution

University of Zurich
Address
Ramistrasse 71
8006 Zurich
Switzerland
Activity type
Higher or Secondary Education Establishments
EU contribution
€ 1 114 800
Principal investigator
Felix Egbert Kübler (Prof.)
Administrative Contact
Felix Egbert Kübler (Prof.)

Beneficiaries (1)

University of Zurich
Switzerland
EU contribution
€ 1 114 800
Address
Ramistrasse 71
8006 Zurich
Activity type
Higher or Secondary Education Establishments
Principal investigator
Felix Egbert Kübler (Prof.)
Administrative Contact
Felix Egbert Kübler (Prof.)