1
Ph. D. Macroeconomics Part III:
Numerical Methods for Macroeconomics
Instructor: Tanapong Potipiti E-mail: [email protected]
Class website: http://pioneer.netserv.chula.ac.th/~ptanapo1/macrophd/
What are Numerical Methods?
Currently, most macroeconomic models are too complicated to be solved analytically. Numerical methods are widely employed for studying such models.
Objective and Expectation
In this course, students will learn how to practically apply numerical methods for solving macroeconomic problems. Students are expected to think and learn from homework. Like other practical skills, the only way to learn programming is to practice and practice. Homework will play a major role in this class. This class will be application and example oriented.
Methods of Study
In the lecture, I will show you basic ideas. You will apply the idea more exhaustively when doing homework.
Course Outline
• Introduction
• Basic Programming and Simulation by Scilab
• Monte Carlo Methods
• Numerical Root Finding
• Solving Finite Horizon Problems
• Solving Dynamic Stochastic General Equilibrium Model: Log-Linear Approximation Methods
• Solving Bellman Equations, Fixed Points and Numerical Dynamic Programming Problems. (If times permits)
Grading
• Final Exam (90%)
• Homework (10%)
How to Do Homework
Try as hard as you can to do it by yourself. After you see the solution and try to understand the solution. Then try to write the code by yourself without copying the solution. It is very important to practice, practice and practice.
References
• Applied Computational Economics and Finance by Mario J. Miranda and Paul L. Fackler
• Numerical Methods in Economics by Kenneth L. Judd
