SolveDSGE is a Julia package for solving Dynamic Stochastic General Equilibrium (DSGE) models. The package is aimed at macroeconomists interested in first-order-accurate or second-order-accurate solutions to their general equilibrium models. SolveDSGE offers a broad array of solution methods that can be applied provided the DSGE model can be expressed in one of several standard dynamic representations.
SolveDSGE allows rational expectations equilibria to be computed using a variety of methods. The appropriate method to use depends on how the (linearized) model is expressed. The following model forms are accommodated:
- Blanchard and Kahn (1980)
- Klein (2000)
- Sims (2001)
- Binder and Pesaran (1995)
SolveDSGE can also solve DSGE models to second-order-accuracy. The two solution methods that are included are:
- Gomme and Klein (2011)
- Lombardo and Sutherland (2007)
In addition to solving rational expectations models, SolveDSGE also computes optimal policies for a range of model forms. Specifically, The following policies can be computed for linear-quadratic models
- Discretion
- Commitment
- Quasi-commitment
- Timeless-perspective commitment
Further information on how to use SolveDSGE is contained in the Package Guide included in the repository.