An exploratory DSGE

In recent times, inspired by the work of Michael Woodford and Paul De Grauwe, I have begun to explore a DSGE model with characteristics that I would like such a model to have.

  • heterogeneous households
  • credit frictions, or in other words, an imperfect financial sector
  • endogenous household behaviour

Some of my posts working towards this model include:

Modelling heterogeneous consumers – De Grauwe versus Woodford

Can we combine De Grauwe and Woodford?

Optimism, discounting and micro-foundations – lessons from Social Psychology

Unique utility functions for extrapolators and fundamentalists 

Government flow of debt and distributed firm profits 

This is definitely a long term project and I’m always looking for ideas and suggestions for how to make this work. If you have papers to suggest or advice to give, please do get in touch.

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2 responses to “An exploratory DSGE

  1. Do you have any suggestions as to how an econ/math undergrad might be able to get into DSGE more? It seems fascinating but there seems to be a very high intellectual barrier to entry.

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