sheng-og-anton

Group members

• Sheng Ye Michael Chen (nsr708), Exercise Class 6
• Anton Meier Ebsen Jørgensen (lpx972), Exercise Class 1

Content

This repository contains the following four projects:

Inaugural Project - Optimal Allocations in the Exchange Economy

We solve the Exchange Economy, where we find the optimal allocations for consumer A based on different assumptions on the objective function and the ressource constraint.

Data Project - Exchange Rate Dynamics: The Relationship between Danish Inflation and Exchange Rates

We fetch data from Danmarks Statistik (Statistikbanken) on Exchange rates (EUR, USD, and CNY) in 100 DKK and show that danish inflation rate does not put a pressure on the central currency parity, since it does not fluctuate by much and never outside the band of $\pm$ 2.25 percent. Moreover, we find the same result if we use the Eurozone inflation.

Model Project - Steady State in the Real Business Cycle Model

We numerically solve a simple Real Business Cycle Model (RBC model), where technology, A, is exogenous and set to 1. Furthermore, we extend the model by using a CES production function instead of a Cobb-Douglas production function. The code of the equations in the system are mostly from Chad Fulton (2015), however, we modify the technology equation and production function in the extension of the model. Lastly, we calibrate the model by analyzing how the steady state values change as a result of different parameter values.

Exam Project -

It is about the production economy with CO2 taxation (problem 1), Career choice model (problem 2), and Barycentric interpolation (problem 3).

Use of AI tools

In all of these projects, we have used AI tools (ChatGPT 4o) to optimize our code and to get inspired, when we felt stuck because of bugs.