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Does julia's speed advantage over python make any difference for DSGE modeling?

Julia is actually a lot faster than Python, also when running DSGE models. The NY FED moved their DSGE model to Julia because it allows them to: Estimate models 10x faster Complete 'solve' test 11x ...
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5 votes

Does julia's speed advantage over python make any difference for DSGE modeling?

There are certainly cases where the performance differences between Python and Julia matter, but solving a simple DSGE model is not one of them. There have been some formal comparison exercises (e.g., ...
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4 votes
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Economic growth in a DSGE model, despite mean-zero shocks

Yes, there are DSGE models that can be used for forecasting. These models typically have a particular kind of steady-state, which is, more precisely, called balanced growth path (BGP). On the BGP (in ...
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3 votes

How to derive the measurement equation for the state-space representation of a DSGE model?

First, you can also have a state-space setup for a model which is not log-linearised. It is the combination of the solution of your model (that you get by using Sims, Klein, Binder-Pesaran, or ...
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2 votes

Does julia's speed advantage over python make any difference for DSGE modeling?

The comparison between julia and python is apples to oranges. They have completely different architectures and performance characteristics. Julia uses JIT compilation to native machine code, which ...
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1 vote

Real effect of monetary policy

Does it come from the fact that prices are rigid in DSGE models? Or that there is imperfect competition? The result that monetary policy can affect real variables itself is due to price stickiness, ...
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1 vote
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Questions regarding DSGE model

What does "competing forces in the economy" mean? That is not a precise economic jargon just a general statement. By reading the context of the passage Christiano et al (2017) just ...
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1 vote

Questions regarding DSGE model

DSGE models are derived from dynamic (i.e. intertemporal) optimisation problems where households and firms maximise utility/profit. The first order conditions are simplified/combined to form a general ...
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1 vote

Basic New Keynesian model with flexible price

As DoubleBass says basic New-Keysian model with fully flexible prices is RBC model, I'd just add that if you have already the set-up of Calvo and want to convert it to fully flexible prices you need ...
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