EconDyn Lab

Welcome!

We live in time, yet in economics classrooms, time stands still! 😸

Undergraduate economics teaching mainly uses the comparative static method.

The comparative static method is like taking snapshots of the system at different times and comparing them. But it does not tell us anything about the the transition between them - whether the journey is bumpy or smooth!


Dynamics is the study about the quality of the journey and what makes the journey bumpy or smooth.

Simulation is a tool to visualize the dynamics of the system, i.e., the journey. It’s not just a computational tool, but it is an active learning tool to understand basic economic intuition.


How to use the platform?

The aim of Econdyn Lab is to provide a simulation tool to help experimental learning in Economics.

  • First, play around the with the parameter values and initial conditions in various models and see how the output plots change - thanks to our dynamic and talented intern Aditya Mahadevan for working on the simulation toolbars using the Shiny package in R (open source). 🫡

  • Second, go to the main reference textbook and study the models to see how the dynamics in those plots are generated.

  • Third, experimenting with the paramter values will help you understand what values make “economic” sense and what values don’t!


Simulate, Experiment, and Repeat 😹


Dynamic Models for Simulation

  1. Cobweb model
  2. Cobweb model with Expectations
  3. Keynesian Multiplier
  4. The IS-LM model
  5. Government deficit, debt and stabilization policy
  6. Expectation dynamics and inflation
  7. Solow’s growth dynamics
  8. Endogenous growth dynamics
  9. Business cycle: Multiplier-Accelerator dynamics
  10. Stock-Flow dynamics: A simple model of a macroeconomy
  11. A model of portfolio choice with endogenous money
  12. Stochastic BMW model
  13. A model of disequilibrium dynamics (DIS) in the product market

Time Series Notes by Kedar Kulkarni

  1. Introduction to Time Series Analysis - Lecture Notes
  2. Applied Time Series Analysis with Stata

Econdyn Lab Team

  • Srinivas Raghavendra, University of Galway, Ireland.
  • Aditya Mahadevan, BA Economics, Azim Premji University, India.
  • Petri T. Piiroinen, Dynamics, Mechanics and Maritime Sciences, Chalmers University of Technology, Sweden
  • Zico Dasgupta, Azim Premji University, India
  • Kedar Kulkarni, Azim Premji University, India