Volume 24, Issue 2 (November 2023)

The EconomicDynamics Newsletter is a free supplement to the Review of Economic Dynamics (RED). It is published twice a year in April and November.

• SED: Call for Papers 2024 Meeting

• SED: Letter from the President

• EconomicDynamics Research Agenda: Sebnem Kalemli-Ozcan on International Transmission under ‘Measured’ Market Integration

• Book Review: Dynamic General Equilibrium Modeling by Burkhard Heer and Alfred Maussner

Paulina Restrepo-Echavarria and Loukas Karabarbounis, Editors.

Letter from the President

Dear Colleagues,

   We are happy to report that the summer conference in Cartagena was a great success thanks in large part to program chairs Anmol Bhandari and Paulina Restrepo-Echavarria and local chair David Perez-Reyna and his team from Universidad de los Andes. Despite being next to a beautiful beach, sessions were very well attended, including the three plenary sessions given by Valerie Ramey, Matthias Doepke, and Mark Aguiar. Even if you could not make it to the meetings, you should check out the talks online at economicdynamics.org.

   The next SED events will take place at the ASSA 2024 in San Antonio. Three sessions have been organized by Viral Acharya (Inflation: The Role of Beliefs and Credibility), Karthik Sastry (Behavioral Macroeconomics), and Oleg Itskhoki (International Capital Flows and the Reserve Currency Paradox). Please add this on your calendar and check the online program for more details on time and location.

   After that, we have our annual summer meeting.  As many of you already know, the Barcelona meeting originally scheduled in June, 2020 is finally going to happen next year. The dates of the meeting are set for June 27-29, 2024. The program organizers are Alessandra Fogli and Elena Manresa. They have already invited a fantastic lineup of plenary speakers, namely, Veronica Guerrieri, Lars Peter Hansen, and Stefanie Stantcheva and are now inviting members of the program committee. We are planning a call for papers to appear later this month. The local chairs are the same as in 2020: Jordi Caballe, Joan Llull, Albert Marcet, and Raul Santaeulalia-Llopis. Sessions will be held at the Universitat Autonoma de Barcelona campus and plans are in the works to host receptions in downtown Barcelona. We encourage everyone to keep an eye on our website and social media feeds for updates.

   Since our summer meetings have been so successful, we are going to run an experiment next year by adding an extra meeting in December (2024). For this, we have chosen the Department of Economics at the Universidad Torcuato di Tella in Buenos Aires, Argentina as hosts. The department will be celebrating its 30th year anniversary. The plan is to test demand for a winter meeting and perhaps host more events in the future if this works out. Plans are still fluid so please check our website for updates.

In other news, we want to thank Jeppe Druedahl and his colleagues at the University of Copenhagen, who have agreed to host the summer meetings in 2025. As many of you know, we were originally planning to meet in Taipei, Taiwan. With current travel restrictions to China and Taiwan, we decided to let future SED presidents revisit the possibility once there is more certainty. In the meantime, we will begin planning for Copenhagen 2025.

  As always, we want to thank the SED officers: Todd Schoellman (Treasurer) and Paulina Restrepo-Echavarria (Secretary), who are an enormous help to us and to the Society.

Ellen and JuanPa

Presidents, Society for Economic Dynamics

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Call for Papers

Society for Economic Dynamics: Call for Papers, 2024 Meeting

The next annual meeting of the Society for Economic Dynamics will be held in Barcelona, Spain, from June 27 to June 29, 2024. We are excited to announce the plenaries by Veronica Guerrieri, Lars Peter Hansen, and Stefanie Stantcheva. You can now submit your paper for the conference using ConferenceMaker. The deadline for submissions is February 15th, 2024. We are looking forward to receiving many exciting submissions for the academic program!

Alessandra Fogli and Elena Manresa

SED 2024 Program Co-chairs

Book Reviews

Modern business cycle theory and growth theory uses stochastic dynamic general equilibrium models. In order to solve these models, economists need to use many mathematical tools. This book presents various methods in order to compute the dynamics of general equilibrium models. In part I, the representative-agent stochastic growth model is solved with the help of value function iteration, linear and linear quadratic approximation methods, parameterised expectations and projection methods. In order to apply these methods, fundamentals from numerical analysis are reviewed in detail. In particular, the book discusses issues that are often neglected in existing work on computational methods, e.g. how to find a good initial value.

In part II, the authors discuss methods in order to solve heterogeneous-agent economies. In such economies, the distribution of the individual state variables is endogenous. This part of the book also serves as an introduction to the modern theory of distribution economics. Applications include the dynamics of the income distribution over the business cycle or the overlapping-generations model.

In an accompanying home page to this book, computer codes to all applications can be downloaded.

“This book does not only an excellent job in explaining the existing tools, but it also teaches the reader on how to write his/her own programs and it provides the reader with the tools to help advance the state of the art of dynamic macroeconomics.” Wouter J. Den Haan, London School of Economics.

”… provides the reader with exactly the necessary computational tools to solve the dynamic general equilibrium models macroeconomists care about. It is therefore the perfect complement to Stokey, Lucas and Prescott’s and Sargent and Ljungqvist’s theoretical treatment of modern macroeconomics.” Dirk Krueger, University of Pennsylvania.

There is an upcoming 3rd edition published in January 2024. The new edition contains 300 pages of new material.

You can download the book here.