Are business cycles costly? This lecture provides a full description on the debate on the welfare cost of fluctuations. The real business cycle framework provides an intuitive benchmark, characterized by an efficient allocation. The introduction of frictions (nominal or financial) makes the allocation less efficient. The introduction of some policy can thus be necessary to dampen these inefficient fluctuations and make the economy closer to the efficient allocation.
Get MATLAB on your computer
Please use your own laptop if you can with MATLAB installed prior to the first lecture.
Dauphine University provides a free licence for students
. Please have Datafeed, Optimization and Econometrics toolboxes installed. This is the safest solution
Go to Citrix
to connect to a remote server hosted in Dauphine. Note that your internet connection must be stable, which may not always be the case if many users are simultaneously connected to the wifi.
Real time macro-data on MATLAB
This is a must-read as all of the lectures will rely on DBnomics. The latter is a database aggregator which can be queried directly from MATLAB. Please read carefully this following note on DBnomics and download as well the MATLAB function which allows to get real time macro data:
Quick Guide. call_dbnomics.m
Query DBnomics w/ MATLAB.
The Dynare package