Springer Verlag 2014

Alfonso Novales Cinca anovales@ccee.ucm.es

Esther Fernández Casillas mesferna@ccee.ucm.es

Jesús Ruiz Andújar jruizand@ccee.ucm.es

Economic Growth: Theory and numerical solution methods

In addition to standard theoretical discussions, this textbook covers in detail stability issues and policy evaluation questions, providing numerical exercises in Excel and Matlab along with the theoretical analysis. Excel files are used for single realizations in deterministic models, while MATLAB files reproduce the analysis with a large number of sample realizations in stochastic economies.
A specific chapter reviews numerical solution methods. Further chapters are devoted to some endogenous growth models and to monetary economies. The effects of alternative monetary and fiscal policies and the possibilities for optimal policy design are emphasized throughout the book. Other non-standard issues addressed are: i) the possibility for nominal indeterminacy of the price level under some monetary policies, ii) stability of the time path for public debt, iii) the sample discretization of continuous-time models, iv) numerical solution methods for a wide class of endogenous growth models.
The book has been written by E. Fernandez-Casillas, A. Novales and J. Ruiz. For further details or any additional information regarding the manuscript, please contact: anovales@ccee.ucm.es or jruizand@ucm.es

A third edition of the book is ready now (Springer link to the book). In this edition we have included two additional chapters. These chapters introduce the reader to the estimation of DSGE models. Thus, in this web page we include the Matlab files that solve the examples contained in these chapters.

1. Description of software programs (We include the Matlab files described in the new chapters of the third edition)
2. Structure of the book. Synopsis 

• Chapter 1: Introduction (Time series concepts and some issues on simulation methods) Software: rar file zip file
• Chapter 2: The neoclassical growth model under a constant savings rate. Software: rar file zip file
• Chapter 3: Optimal growth. Continuous time analysis. Software for Chapters 3 and 4: rar file zip file
• Chapter 4: Optimal growth. Discrete time analysis
• Chapter 5: Numerical solution methods. Software for Chapter 5: rar file zip file
• Chapter 6: Endogenous growth economies. Software for Chapters 6 and 7: rar file zip file
• Chapter 7: Additional endogenous growth models.
• Chapter 8: Growth in monetary economies. Steady-state analysis of monetary policy. Software for Chapters 8 and 9: rar file zip file
• Chapter 9: Transitional dynamics in monetary economies. Numerical solutions
• NEW (third Edition): Chapter 10: Empirical Methods 1: Frequentist Estimation. All zip files
  • Applying GMM estimation procedure to the CCAPM  model (Hansen and Singleton, 1982).
  • Decomposition of GDP and unemployment rate into trend and cyclical components using maximum likelihood estimation (Clark's (1987) model)
  • Estimation of Hansen's (1985) model with indivisible labor using maximum likelihood estimation
• NEW (third Edition): Chapter 11: Empirical Methods 2: Bayesian Estimation. All zip files
  • Estimation of  a simple linear regression model using the Gibbs-Sampling algorithm
  • Generating Random Numbers from a Cauchy Distribution using Metropolis_Hastings sampler
  • Bayesian Estimation of a GARCH using the Metropolis-Hastings algorithm with random walk
  • Bayesian Estimation of a DSGE Model by the MCMC method: Hansen’s (1985) model with indivisible labor
• Chapter 12: Mathematical appendix