DSGEmudelid
DSGEmudelid, or Dynamic Stochastic General Equilibrium models, are a class of macroeconomic models used to analyze how economies respond to shocks and policy changes. They are built on microfoundations in which decision makers, typically a representative household and firms, optimize intertemporally subject to constraints. Markets are solved to clear over time, and the evolution of the economy is driven by exogenous random shocks, such as productivity changes, preference shifts, or policy moves.
A defining feature is the use of forward-looking behavior under rational expectations and dynamic optimization. Many
Estimation and use: DSGEmudelid can be calibrated or estimated from data, with Bayesian methods becoming common
History and reception: DSGEmudelid evolved from real business cycle models in the 1980s and were refined into