The course provides participants with the tools to develop and analyze business cycle models with heterogenous agents. This class of models has become the new standard in the business cycle literature and allows to analyze the interaction of the business cycle and the distribution of consumption, income, and wealth.
The focus of the course is on numerical methods. Coding exercises in class are an important element of the course, such that participants should be able to apply the methods straight out of the class.
Students should ideally have some experience in numerical modelling (using MATLAB or the like). They should also have some basic knowledge of how to solve dynamic planning problems globally (at least using value function iteration).
• Lecture 1
• Lecture 2
• Lecture 3
• Lecture 4
• Lectures 5 & 6
The resources used include lecture slides, coding exercises with template solutions, and literature which will be provided.
Ralph Luetticke is a Professor of Economics at University of Tübingen and affiliated with the Centre for Economic Policy Research, the Centre for Macroeconomics, and the Stone Centre on Wealth Concentration, Inequality, and the Economy at University College London. His research studies the conduct of fiscal and monetary policy as well as the sources of business cycles with new tools that allow us to take household heterogeneity into account in models and data. His interests include Macroeconomics, Fiscal and Monetary Policy, Computational Methods, and Inequality.