Matthew Martin — What is a DSGE model?

Lots of econ bloggers have alternatively cited DSGE models or criticized them in posts, but I've never actually seen any attempts to show the lay public what one looks like. My aim is to simply show you what a DSGE model looks like and how it is used in practice. This is not a dumbed-down explain-like-I'm-five post (perhaps that's for a future post, but this is the full unabridged model), nor is this a step-by-step guide to learning how to do DSGE modeling--I present just the model, nothing else. What follows is a DSGE calculator programmed with a log-linear approximation of a standard "Real Business Cycle" DSGE model with complete taxation, followed by a concise definition of the model and all the variables.

Separating Hyperplanes
What is a DSGE model?

Matthew Martin