The Science and Art of Dynamic Stochastic General Equilibrium (DSGE) Modelling (Foundation)

Key information

Start date: 07 September 2020

Attendance dates:

September 2020: 07, 08, 09, 10, 11, 12

Time commitment: 6 days


Stag Hill campus, University of Surrey, Guildford, Surrey GU2 7XH

Contact details:


This course provides instructions on the construction and estimation of DSGE models for emerging open economies and their use for policy analysis. It is Dynare-based and is aimed at PhD students, postgraduate students aiming to proceed to a PhD, early researchers and research staff from central banks, ministries and the private sector. Participants should have some prior experience with macroeconomic models and dynamic optimisation, and a basic knowledge of Matlab. No prior knowledge of Dynare is necessary.

Our courses featured in the Top Summer Schools in Economics 2019, in Inomics.

Course content

The course will explore the basics of Dynare programming, the construction of Bayesian estimation of DSGE macroeconomic models in Dynare, and their use for optimal policy analysis. You will cover the underlying theory proceeding in steps from the real-business cycle theory (RBC) model through to a medium-sized New Keynesian (NK) model.

  • Dynare basics
  • RBC model
  • Calibration and use of an external steady state
  • Linearisation
  • NK model
  • Stability-indeterminacy
  • Introduction to the global sensitivity analysis toolbox in Dynare
  • Preparing the data including use of various filters
  • An introduction to Bayesian methodology
  • Identification and pre-estimation checks
  • Direct linear estimation of the non-linear NK model
  • Model comparisons by likelihood races
  • Comparison of second moments of model with data
  • Optimal monetary policy for linear-quadratic problems:
    • The Ramsey problem
    • Optimal time-consistent policy
    • Optimised simple rules

On the final day of the course, we will hold an optional conference. You are invited to submit a paper on some aspect of DSGE modelling. We will select five or six papers to be presented in full with discussants, while the remaining submissions will be given the opportunity to be presented during our poster session. The deadline for paper submission will be 20 July. Notification of acceptance to present a paper in full or in the poster session will be communicated by 3 August.

Course contributors

Vasco J. Gabriel

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Paul Levine

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Ricardo P. C. Nunes

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Luciano Rispoli

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Kirill Shakhnov

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The practical sessions will take place in computer labs. We provide computers to all participants with Matlab and Dynare installed and set up. For those wishing to use their own computers outside the sessions, it should be noted that Dynare is free software, but Matlab requires a license to be purchased.

Entry requirements

Applicants must have:

  • A background in macroeconomics with some knowledge of macro-modelling and dynamic optimisation.
  • A basic knowledge of Matlab programming (see an overview of the Matlab features our participants are expected to know).
  • A working knowledge of English.
  • A basic knowledge of the RBC and NK Model.

Fees and funding

Price per person:


Non-academic participants





What these fees include

Lunch, refreshments, a course dinner on day three, course notes, the day five workshop and model software are included.

Additional costs

If you would like to stay on our campus throughout your course, we have a limited number of single bed en-suite rooms available. These are charged at £40 per night and include breakfast. If your application is successful, you will receive an email with instructions on how to book our accommodation.

Funding opportunities

The following concessions are available:

  • 10% discount for participants who have attended a previous course with the Centre for International Macroeconomic Studies.
  • 20% discount for participants from institutions in developing countries.

How to apply

Deadline for applications is 10 August 2020, but we encourage you to apply as soon as possible as the places will be allocated using a rolling selection process.

If your application is successful, you will receive an email offering you a place and you will have two weeks to pay the full fees balance to secure this.

Apply now

Terms and conditions

When you accept an offer of a place at the University of Surrey, you are agreeing to comply with our policies and regulations and our terms and conditions. You are also confirming you have read and understood the University's prospective student privacy notice.

Further details of our terms and conditions will follow.


This online prospectus has been prepared and published in advance of the commencement of the course. The University of Surrey has used its reasonable efforts to ensure that the information is accurate at the time of publishing, but changes (for example to course content or additional costs) may occur given the interval between publishing and commencement of the course. It is therefore very important to check this website for any updates before you apply for a course with us. Read more.