In case of conflicting information consider the Sisu/Courses/Moodle pages the primary source of information.
This course introduces and applies dynamic heterogenous 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 risks. For each model, we also discuss issues related numerical methods and calibration.
Please note that the course former name was Advanced Macroeconomics 4: Real Business Cycles (and still is in Sisu if you use DPE-9318 PhD level code)
- Completion method: contact teaching
- Streaming will be only available to the FDPE students, for more infromation please contact Jenni Rytkonen, jenni.rytkonen [at] aalto.fi
- Schedule: can be found in Courses Page and Sisu
- Study materials: can be found in Moodle
- A link and a Moodle course key will be sent by email before the course starts and/or they will be provided on the Courses page: you can view the information on this site without logging in or registering, but some of the content added by teachers to course pages may be available to course participants only, for example Moodle course enrolment key.
- Log in with your UH username to be able to use all the features of the course workspace
- Self study material to be studied before the course starts (link to be added here later)
Please register for the course in the UH Sisu with your UH username. Further instructions (link to be added here later).
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