Welcome to the Homepage of the DGE Book by Burkhard Heer and Alfred Maußner

Modern business cycle theory and growth theory uses stochastic dynamic general equilibrium models. In order to solve these models, economists need to use many mathematical tools. This book presents various methods in order to compute the dynamics of general equilibrium models. In Part I, the representative-agent stochastic growth model is solved with the help of value function iteration, linear and linear quadratic approximation methods, parameterized expectations and projection methods. In order to apply these methods, fundamentals from numerical analysis are reviewed in detail. In Part II, the authors discuss methods in order to solve heterogeneous agent economies. This part of the book also serves as an introduction to the modern theory of distribution economics. Applications include the dynamics of the income distribution over the business cycle or the demographic transition in a large-scale overlapping generations model. In the tables below, computer codes to all applications can be downloaded.

Second Edition

 

Springer

 

 

CoRRAM: User Guide and Toolkit

 

GAUSS, MATLAB & FORTRAN Routines

If you have questions or suggestions pertaining to the programs from Ch1 through Ch6 and Ch11 please contact Alfred Maußner.

 

Burkhard Heer will be pleased to answer any questions about the programs from Ch7, Ch8, Ch9 and Ch10.

 

Chapter                          

GAUSS programs (source code) Last change Fortran programs (source code)             Last change   

Part I.
Representative Agent Models

       
Ch. 1. Basic Models download zip file October 11, 2011    
Ch. 2. Perturbation Methodsdo download zip file August 28, 2009 download zip file

April 23, 2015

Ch. 3. Deterministic Extended Path download zip file

May 30, 2016

   
Ch. 4. Discrete State Space Methods download zip file

November 24, 2008

   
Ch. 5. Parametrized Expectations     download zip file November 24, 2008
Ch. 6. Projection Methods download zip file

October 05, 2011

download zip file November 24, 2008
Part II. 
Heterogeneous Agent Models
       
Ch. 7. Computation of Stationary Distributions download zip file November 19, 2008    
Ch. 8. Dynamics of the Distribution Function download zip file November 19, 2008    
Ch. 9. Deterministic Overlapping Generations Models download zip file

October 15, 2018

   
Ch. 10. Stichastic Overlapping Generations Models download zip file January 02, 2014    
Part III. 
Tools
       
Ch. 11. Numerical Methods download zip file

January 24, 2013

download zip file November 24, 2008
Ch. 12. Various Other Tools        

First Edition

 

 

GAUSS & FORTRAN Routines

If you have questions or suggestions pertaining to the programs from Ch1 through Ch4 and Ch8 please contact Alfred Maußner.

 

Burkhard Heer will be pleased to answer any questions about the programs from Ch5, Ch6, and Ch7.

 

Chapter                          

GAUSS programs
(source code)
Last change Fortran programs
(source code)
            
Last change   
Part I.
Representative Agent Models
        
Ch. 1. Basic Models and Elementary Algorithms download zip file

January 02, 2014

download zip file    

August 14, 2002

Ch. 2. Linear Quadratic and Linear Approximation Methods download zip file     January 02, 2014  

 

Ch. 3. Parameterized Expectations download zip file    

January 06, 2005

download zip file     November 20, 2003
Ch. 4. Projection Methods download zip file

January 06, 2005

download zip file     January 06, 2005
Part II. 
Heterogeneous Agent Models
       
Ch. 5. A Heterogenous-Agent Extension of the Ramsey Model download zip file March 26, 2007    
Ch. 6. Dynamics of the Distribution Function download zip file January 06, 2005    
Ch. 7. Overlapping Generations Models download zip file

October 15, 2018

   
Part III. 
Mathematical Background
       
Ch. 8. Tools download zip file    

July 10, 2004

   

Comments

This is perhaps the perfect book to learn how to solve quantitative macroeconomics models. Its balance between theory, choice of models, computational insights and use of examples make it an excellent teaching tool. One of the very few books a professional macroeconomist should have: I always learn something important when I consult it.
José-Víctor Ríos Rull, University of Minnesota
This book not only does an excellent job in explaining the existing tools, but it also teaches the reader on how to write her/his own programs and it provides the reader with the tools to help advance the state of the art of dynamic macroeconomics.
Wouter J. Den Haan, University of Amsterdam
… provides the reader with exactly the necessary computational tools to solve the dynamic general equilibrium models macroeconomists care about. It is therefore the perfect complement to Stokey, Lucas and Prescott’s and Sargent and Ljungqvist’s theoretical treatment of modern macroeconomics.
Dirk Krueger, University of Pennsylvania

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