5
votes
Accepted
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., ...
- 175
4
votes
Accepted
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 ...
- 51
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 ...
- 21
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, ...
- 41.3k
1
vote
Accepted
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 ...
- 41.3k
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 ...
- 71
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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