While the theoretical development of DSGE models is not overly difficult to understand, practical application remains somewhat complex. The literature on this subject has some significant obscure points. This book can be thought of, firstly, as a tool to overcome initial hurdles with this type...

Introduction -- Real Business Cycle (RBC) model -- Basic New-Keynesian (NK) model -- New-Keynesian model with wage stickiness -- New-Keynesian model with habit formation and non-Ricardian agents -- New-Keynesian Model with adjustment costs on investment and under-utilization of maximum installed...