Using Bayesian Methods to Estimate Small Global Projection Models (GPMs) with Dynare
Representing the middle ground between micro-founded DSGE models and reduced-form econometric models, these models can be useful for both forecasting and monetary policy analysis. Students will learn how to use Bayesian methods in DYNARE to estimate 2-country versions of the models that include information on interest rates, exchange rates, inflation, GDP and unemployment.
Dynare is a pre-processor and a collection of MATLAB routines that have been developed to support modern macro modeling.
Methodology:
Prerequisites
No previous knowledge of Bayesian methods or DYNARE is required.
For references and code see www.douglaslaxton.org