Summer School

Basic and Advanced Course on DSGE Modelling

Monday 7 September 2015 to Friday 11 September 2015
Faculty of Business Economics and Law University of Surrey, Guildford, GU 2 7XH
Open to:
Public, Staff, Students

Following highly successful summer schools in previous years, the Centre for International Macroeconomic Studies (CIMS) in the School of Economics, University of Surrey will hold a Summer School from 7 -11 September 2015.  

The School will consist of two parallel 4-day courses:

  • A basic course aimed at early researchers with some knowledge of Real Business Cycle (RBC) or Dynamic Stochastic General Equilibrium (DSGE) macroeconomic models, but little or no experience of Matlab and Dynare. Complete beginners are advised to attend the three-day Easter Course.
  • An advanced course aimed at more established researchers who are already fluent in Dynare and Matlab. This course will be useful to anyone who is engaged in practical macroeconomic modelling work, especially if they are interested in working with models that are either computationally expensive to simulate, highly nonlinear, or infinite dimensional thanks to heterogeneous agents.

The basic and advanced courses will run in parallel for four days from 7 - 10 September. Then on day five, 11 September all participants from both streams will be able to choose one from four one-day advanced courses covering:

  • Financial frictions
  • Forecasting
  • Imperfect information and Optimal Policy
  • Occasionally binding constraints

For all these courses, notes and model codes will be distributed to participants. Further details on the options are given below and in the course programme on the right.

Course Contents

The Basic Course:  will start with an introduction to Matlab and Dynare programming . It will then proceed to the construction and Bayesian estimation of DSGE macroeconomic models in Dynare and their use for optimal policy analysis. The course material will cover the underlying theory proceeding in steps from the RBC model through to a medium-sized NK model.

The Advanced Course:  will cover advanced Matlab and Dynare Programming, applied dynamic programming, non-linear solution and estimation methods, DSGE models with heterogeneous agents and DSGE models with occasionally binding constraints.

The four full-day course options on day five are as follows:

  • Financial Frictions in DSGE Models:  different modelling approaches; Bayesian estimation and comparison of models; conventional and unconventional monetary policy; implications of financial frictions for optimal conventional monetary policy
  • DSGE-VAR Models and Forecasting:  finite VAR approximation to solutions of DSGE models; use of DSGE-VAR models for model comparisons; DSGE-VAR estimation; DSGE forecasts in a Bayesian framework; estimation and out-of-sample forecasting
  • Imperfect Information and Advanced Optimal Policy : rational expectations solution of linearized models with imperfect information;  estimation of linearized DSGE models with imperfect information;  optimal policy with commitment  and optimized simple rules;  zero lower bound and robustness considerations
  • Occasionally Binding Constraints in Large Models:  Perfect-foresight solutions and the extended-path method;    The stochastic extended-path method;    The Holden-Paetz hybrid local-global method and dynareOBC toolkit:  The Zero Lower Bound in New Keynesian models;  Financial Frictions with Occasionally Binding Borrowing Constraints; Non-linear estimation using the dynareOBC toolkit

Who should attend this Summer School?

  • PhD students  and academics and who want to develop or extend their knowledge of DSGE modelling
  • Researchers and practitioners working at central banks, as well as at other private and public institutions, working or interested in DSGE modelling

Entry Requirements

To be considered for admission to the basic course applicants must have:

  • A background in economics
  • A working knowledge of English
  • A basic knowledge of the RBC and NK Model

To be considered for admission to the advanced course, applicants must have:

  • A strong knowledge of DSGE modelling
  • Experience in programming in Matlab and Dynare
  • Applicants who have attended previous courses by CIMS will be particularly welcome to apply for the advanced course.


The fees for academics and PhD students are £700 for the five-day course.

For participants from central banks, ministries or the private sector the fees are £1500.

Lunch, coffee, a course dinner on day three, course notes and model software are included in this cost. The practical sessions will take place in computer labs with Matlab and Dynare installed.  For those wishing to use their own computers outside the sessions, it should be noted that Dynare is free software, but Matlab must be purchased.

Course Outline

Full details of the course, the instructors you will meet, reading and software that will be used plus a breakdown of each day's activities can be found in the document below: 

CIMS summer school programme (68.8KB - Requires Adobe Reader) CIMS summer school application form (92.31KB - Requires Adobe Reader)

Deadline and Admission Process

The deadline for application is 30th July,  but we do encourage interested people to apply as soon as possible as the places will be allocated using a rolling selection process. Once your application has been reviewed, you will receive an email offering you a place and applicants will have 2 weeks to pay the full fees balance to secure their place.

The University of Surrey offers accommodation on campus at competitive rates. This must be booked separately from the course. Please note that places on the course and for accommodation are on a first come first serve basis.

Should you require any further information or for enquiries please contact:

Organization (including accommodation): Ruth Wade, Faculty of Business, Economics and Law,

Course Content:  Jonathan Swarbrick, School of Economics,

Monday 7 September 2015

to Friday 11 September 2015

Faculty of Business Economics and Law University of Surrey, Guildford, GU 2 7XH
Open to:
Public, Staff, Students

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