Dynamic Macroeconomic Models

(in Excel)


The Dynamic IS-LM model


  • The Dynamic IS-LM model (pdf)
  • The Dynamic IS-LM model (Excel)
  • References:  Hicks, J. R. (1937). Mr. Keynes and the ‘Classics’: A suggested interpretation. Econometrica, 5(2): 147–159. Meade, J. E. (1937). A simplified model of Mr. Keynes’ system. Review of Economic Studies, 4(2): 98–107. Phillips, A. W. (1958). The relation between unemployment and the rate of change of money wage rates in the United Kingdom 1861–1957. Economica, 25(100): 289-299. 

The Dornbusch exchange rate overshooting model



The basic household maximization problem



The household maximization problem with labor supply



The Tobin Q model


  • The Tobin Q model (pdf)
  • The Tobin Q model (Excel)
  • References: Tobin, J. (1969). A general equilibrium approach to monetary theory. Jornal of Money, Credit and Banking, 1(1): 15-29.  Hayashi, F. (1982). Tobin’s marginal q and average q: A neoclassical interpretation. Econometrica, 50(1): 213-224.

The Real Business Cycle model



Investment-Specific Technological Change


  • The ISTC model (pdf)
  • The ISTC model (Excel)
  • Reference: Greenwood, J., Hercowitz, Z. and Krusell, P. (2000). The role of investment-specific technological change in the business cycle. European Economic Review, 44(1): 91-115.

The Solow growth model



The Ramsey optimal growth model