Building RBC DSGE Models in MATLAB Dynare: Learning Spillovers and Taxation Scenarios

This package delivers complete RBC DSGE models in MATLAB Dynare, featuring learning-by-doing spillovers and a taxation-transfer mechanism. The first model shows how accumulated production enhances productivity, amplifying technology shocks. The second introduces fiscal policy with capital and labor taxes redistributed as lump-sum transfers. Both are calibrated to quarterly parameters and solved through stochastic simulations and impulse responses. The model solutions are provided in PDF format, with a recursive method approach.

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RBC DSGE Models in MATLAB Dynare: Learning Spillovers and Taxation

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This package offers fully coded Real Business Cycle (RBC) models in MATLAB Dynare, featuring two key extensions. The first introduces learning-by-doing spillovers, where accumulated production enhances future productivity, amplifying technology shocks.

The second adds a government sector with proportional taxes on labor and capital, redistributed to households through lump-sum transfers.

The package provides a PDF with the math and explanations, reproducible code, simulation results, and figures, making it a valuable foundation for analyzing fiscal distortions, productivity dynamics, and technology shocks within an RBC-DSGE framework.

You will get the following files:

PDF (1MB)
ZIP (928KB)

Spillovers from Learning-by-Doing

The first extension incorporates productivity spillovers from accumulated production activity. This mechanism captures how higher output today enhances future productivity, amplifying the propagation of shocks. The model preserves the standard RBC structure—Cobb-Douglas production, log utility, capital accumulation—but adds a dynamic feedback from past labor and capital use to total factor productivity.

Government Taxes and Transfers

The second specification introduces a government sector financing lump-sum transfers through proportional taxes on labor and capital income. This setup allows direct comparison between a frictionless benchmark and an economy where fiscal distortions reshape household and firm decisions. The redistribution mechanism generates visible shifts in consumption, investment, and labor supply.

Simulated Series

Simulated Series: No Taxes vs. With Taxes

The baseline shows higher output, consumption, and investment over time, supported by stronger capital accumulation and labor supply. Under taxation, transfers increase but private activity contracts: households work less, firms invest less, and interest rates rise. The comparison highlights how fiscal distortions reduce long-run efficiency and growth.

Simulated Series: With vs. Without Spillovers

The spillover economy sustains higher output, consumption, and investment, driven by productivity gains from accumulated production. Capital deepening accelerates, wages rise, and labor supply remains persistently stronger than in the baseline. Compared to the no-spillover path, the dynamics highlight how learning-by-doing reinforces growth, amplifies persistence, and smooths long-run macroeconomic performance

The material includes

PDF with mathematical solution of the models

I have included a paper written by me with the full step by step derivation using a recursive method approach. Note: there is no numerical method solution. We have done the computation using Matlab Dynare.

Learning by Doing

Full code to calibrate the model
Matlab Scenario code to produce the IRFs'
Matlab Code to produce the simulated series

Tax to finance Lump Sum Transfers

Full code to calibrate the model
Matlab Scenario code to produce the IRFs'
Matlab Code to produce the simulated series

Customer Reviews

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Matthew H.

Verified Buyer

I recommend this product

7 months ago

Thanks!

Works great! Thanks

Reply from creator

Emily D.

Verified Buyer

I recommend this product

7 months ago

We need more material like this!

Please create some tutorials on open economies! Your files have been really helpful to understand such complex models!

Reply from creator

Ashley R.

Verified Buyer

I recommend this product

7 months ago

Straightforward

Love it! Great codes to produces graphs! Quite useful!

Reply from creator

Michael A.

Verified Buyer

I recommend this product

7 months ago

Useful to extend to other models

I like buying these type of materials as it allows me to extend some models I work on my own.

Reply from creator

Building RBC DSGE Models in MATLAB Dynare: Learning Spillovers and Taxation Scenarios

RBC DSGE Models in MATLAB Dynare: Learning Spillovers and Taxation

Spillovers from Learning-by-Doing

Government Taxes and Transfers

Simulated Series

Simulated Series: No Taxes vs. With Taxes

Simulated Series: With vs. Without Spillovers

The material includes