https://github.com/davidrpugh/pyeconomics

Computational economics in Python
https://github.com/davidrpugh/pyeconomics

Last synced: 9 days ago
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Computational economics in Python

• Host: GitHub
• URL: https://github.com/davidrpugh/pyeconomics
• Owner: davidrpugh
• Created: 2012-12-14T15:14:37.000Z (about 12 years ago)
• Default Branch: master
• Last Pushed: 2014-01-16T16:21:13.000Z (almost 11 years ago)
• Last Synced: 2024-05-06T14:36:17.746Z (8 months ago)
• Language: FORTRAN
• Size: 13.9 MB
• Stars: 202
• Watchers: 30
• Forks: 83
• Open Issues: 0
• Metadata Files:
  • Readme: README.md

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README

        
Computational-Economics

=======================

Code for a computational economics course I am teaching at the University of 

Edinburgh.  This year's curriculum consists of...

The Solow Model:

--------------- 

A discrete time version of [Robert Solow's](http://en.wikipedia.org/wiki/Robert_Solow) 

classic 1956 article entitled: [A Contribution to the Theory of Economic Growth](http://faculty.lebow.drexel.edu/LainczC/cal38/Growth/Solow_1956.pdf).  In this lab students...

* Explore some of the basic implications of the Cobb-Douglas production function using 3D graphics and contour plots.

* Learn to write basic Python functions to code the key equations of the Solow model.

* Solve for the steady state of the Solow model analytically and numerically.

* Learn the basics of symbolic and numerical differentiation in order to assess the stability properties of the model's steady state.

* Introduction to Object-Oriented Programming (OOP) and simulation using the Python class **solowModel**.

* Analyze the response of the model to shocks to the key exogenous parameter model, the savings rate. 

The Ramsey Model: 

-----------------

A discrete time version of [Frank Ramsey's](http://en.wikipedia.org/wiki/Frank_P._Ramsey) classic 1928 article entitled:

[A Mathematical Theory of Saving](folk.uio.no/gasheim/zRam1928.pdf). In this lab students...

* Explore some of the basic implications for inter-temporal optimization of the CRRA utility function using 3D graphics and contour plots.

* Learn to write basic Python functions to code the key equations of the Ramsey model.

* Solve for the steady state of the Ramsey model analytically and numerically.

* More basics of symbolic and numerical differentiation in order to assess the stability properties of the model's steady state. Need to calculate the Jacobian and its eigenvalues/vectors!

* More Object-Oriented Programming (OOP) and simulation using the Python class **ramseyModel**.

* Solve for a linear approximation to the optimal policy function for consumption.

* Solve for the full non-linear optimal policy function for consumption using the forward-shooting algorithm.

* Compare the linear approximation with the full non-linear optimal policy to discover how good the linear approximation actually is!

* Some basic welfare analysis of the Ramsey model.

* Finally, we consider the response of a Ramsey economy to a shock to the growth rate of technology. 

A Real Business Cycles (RBC) model:

-----------------------------------

Basic RBC model from Chapter 5 of David Romer's *Advanced Macroeconomics*. In this lab students...

* Explore some of the optimal trade-off between consumption and labor/leisure using 3D graphics and contour plots.

* Explore some of the basic implications for inter-temporal optimization with two choice variables (i.e., consumption and labor supply!).

* Solve for the steady-state of the RBC model numerically.

* Solve for a linear approximation to the recursive equilibrium law of motion for the model using techniques from [Uhlig (1997)](www2.wiwi.hu-berlin.de/wpol/html/toolkit/toolkit.pdf) implemented in the Python class **RBC**.

* Generate and analyze impulse response functions and simulate data from the model to show that model correctly captures relative volatilities of investment, output, and consumption.