Advanced Macroeconomics 4: Heterogenous agent models with policy applications (5 cr)

Code:
ECOM-R318/DPE-9318
Field:
Macroeconomics
Targets:
Research Master's students PhD students
Organiser:
University of Helsinki - Economics
Instructor:
Niku Määttänen
Period:
Period 4
Format:
Lecture
Method:
Contact teaching
Venue:
Economicum
Enrollment:

In case of conflicting information consider the Sisu/Course/Moodle pages the primary source of information.

Aalto and Hanken economics students can enroll in their home university’s SISU! Further instructions can be found on the How to enroll page, also for other students.

Before taking and completing the course make sure that the credits can be counted towards your degree at your home university by checking which courses are included in your curriculum or by contacting your home university’s student/learning services.

Please note that there is a different code for UH PhD students: DPE-9318

This course introduces and applies dynamic heterogeneous agent models to study policy questions related to taxation, social insurance, and pension systems. The models considered include the neoclassical growth model with wealth and labour income heterogeneity as well as life cycle and overlapping generations models of labour supply and savings with uninsurable income risks. For each model, we also discuss issues related to numerical methods and calibration.

After the course, the student should

  • be able to apply dynamic programming to solve stochastic dynamic optimization problems numerically
  • be able to incorporate realistic tax and transfer schemes such as unemployment insurance and pension systems into basic models of household savings and labour supply
  • be familiar with issues related to the calibration of heterogenous agent models
  • understand how to use heterogenous agent models to assess the distributional welfare effects of specific policy reforms