Neoclassical Growth Model Theory & MATLAB

Modern Macroeconomics, Economic Growth, MATLAB
What you'll learn
Understand the fundamentals and the economic intuition of the Neoclassical Growth Model
Learn MATLAB basics and how the computer works
Learn the recursive approach and the theory behind it
Learn two ways of solving the Neoclassical Growth Model in MATLAB: Brute Force and Recursive
Requirements
Economics: Intermediate Microeconomics
Programming: Some basic knowledge of programming is preferred, but everything program-oriented is self-contained
Description
Have you ever wondered how economists build models to explain growth, productivity, and living standards over time? The Neoclassical Growth Model is one of the fundamental frameworks in modern macroeconomics, and understanding it will give you powerful insights into how economies work and why some countries grow faster than others. This course is designed for students who are curious about economics but may not have advanced technical knowledge yet.We start from the very basics-what a model is and why economists use them. You will learn how households, firms, and markets interact, and how equilibrium outcomes are determined. From there, we gradually move to dynamic models, exploring how consumption, savings, and investment decisions shape long-run economic growth. At every stage, intuition is emphasized alongside the mathematics, so you don't just learn equations-you understand the economic forces behind them.But this course goes further. Theory is only half the story: you will also learn how to implement these models in MATLAB, one of the most widely used programming tools in economics. You will learn essential programming skills, numerical methods, and how to solve and simulate models on your own computer. No prior experience with MATLAB is required; we will build up the tools step by step.By the end of the course, you will not only understand the Neoclassical Growth Model and its applications, but also have the ability to use MATLAB to solve similar problems, preparing you for more advanced studies, research projects, or policy applications. Whether you are an undergraduate student exploring economics for the first time, a graduate student needing a refresher, or simply someone interested in how growth works, this course will give you both knowledge and practical skills that you can build on.To get the most out of this course, you should already be comfortable with intermediate microeconomics concepts such as utility maximization, firm behavior, and equilibrium analysis. A solid grasp of calculus-including derivatives, optimization, and basic functions-is also necessary, since these tools are essential for understanding how the models work. Finally, while no prior experience in MATLAB is required, it will help if you have some basic exposure to programming logic (loops, functions, or simple coding ideas) in any language, as this will make the transition to MATLAB smoother. With these foundations, you will be ready to follow the material and apply the techniques we develop together.
Who this course is for
Economics enthusiasts with curiosity on computational implementation of models
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