Add oil to Dynamic Stochastic General Equilibrium (DSGE) Models

📊 Adding Oil to DSGE Models in Stata & Dynare | Applied Time Series Analysis & Forecasting Tutorial 🔍 Expand Your Real Business Cycle (RBC) Model with Oil Inputs Captions and subtitles available in multiple languages In this applied time series analysis tutorial, learn how to incorporate oil into Dynamic Stochastic General Equilibrium (DSGE) models using Stata or Dynare. Building on our previous Real Business Cycle (RBC) model tutorials, we extend the model by adding oil as a production input alongside capital and labor. Perfect for econometrics students, researchers, and professionals interested in macroeconomic forecasting! What You’ll Learn: ✅ How to modify the RBC model to include oil in the production function. ✅ Derive the oil price from firms’ maximization problem in a DSGE framework. ✅ Understand exogenous vs. endogenous oil supply and their implications. ✅ Analyze oil supply and demand shocks and their impact on oil prices. ✅ Explore real-world examples like war, political instability, and COVID-19 affecting oil shocks. Key Topics Covered: DSGE Models with Oil RBC Model Extension Oil Price Dynamics (Supply & Demand Shocks) Exogenous Oil Supply (AR(1) Process) Macroeconomic Forecasting in Stata and Dynare Why It Matters: Discover how firms’ increased productivity drives oil demand, raising prices, or how supply shocks (e.g., new oil reserves or geopolitical events) lower prices. This simple yet realistic model uses an exogenous oil supply (AR(1) process) to capture unpredictable events, making it a powerful tool for time series forecasting. 🎥 Part of the DSGE & RBC Model Series This video is part of our comprehensive playlist on applied time series analysis, DSGE modeling, and RBC models. Subscribe for weekly tutorials on econometrics, macroeconomics, Stata, and Dynare! ------------------------------------------------------------------------------------------------------------------------------------------ ⚠️ Disclaimer: The model presented in this video builds on the standard RBC framework and was originally developed for teaching purposes by Dr. Stephen Snudden, Assistant Professor of Economics at Wilfrid Laurier University (Canada). The implementation and presentation in this video are my own and intended for educational use. You can find Dr. Stephen Snudden’s professional profile here: https://stephensnudden.com/ ------------------------------------------------------------------------------------------------------------------------------------------ Resources & Next Steps: 🔗 Estimate the Model in Stata:    • DSGE Oil Model in Stata   🔗 Learn Simple RBC DSGE Model:    • Learn Real Business Cycle model - Macroeco...   🔗 DSGE Models in Matlab-Dynare:    • Beginners Course: Intro to DSGE models in ...   🔗 Buy the Complete Stata Do-File + Math Solution: https://jdeconomicstore.com/b/rbc-mod... 🔗 Download Free Dataset: https://jdeconomicstore.com/b/rbc-mod... 🔗 Access Matlab-Dynare Course (Includes Oil Model): https://jdeconomicstore.com/b/dsge-dy... 🔗 Support Content Creation: Join our membership at    / @forecastingeconomics   Timestamps 00:00 Introduction 00:30 Expand the RBC Model 05:30 Model Oil Supply- Endogenous/Exogenous 11:20 Exogenous Oil Supply 15:23 Maximization Problem 19:33 Factor Prices 21:27 Equations & Calibration 24:47 Final Ideas & Conclusions 📩 For Research or Job Proposals: Contact me at [email protected] for assistance with international agencies, banks, or firms. 💡 Stay Connected: Subscribe, like, and comment—what DSGE topic should we cover next? #AppliedTimeSeries #DSGEModel #RBCModel #OilEconomics #Econometrics #StataTutorial #DynareTutorial #TimeSeriesForecasting #Macroeconomics