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Getting started
Easiest way to get a good base Python installation is to install the Enthought Python Distribution (free for academics!). You will need to sign up for account using your university email and then wait for two emails. The first email contains an account verification link. The second email contains detailed instructions about how to install and update you EPD. The rub: visit the EPD repository page (making sure that you are logged in to your Enthought account!) and click the Repository Login button. This should take you to a list of EPD installers. Select either the 32 or 64-bit versions depending on your system.
Once you have downloaded and installed the EPD, open a command prompt (i.e., terminal window) and type python at the prompt. If the installation has been successful, you should see some information about the version of the EPD that you are running, the version of Python that you are running, and be taken to a Python prompt: >>>. Quit Python by typing control-z, and then type ipython at the prompt. You should be taken to the IPython prompt and given some information about the version of IPython that you are using. If you do not have version 0.13.1, the you will want to update.
To update to the most recent version of IPython, first quit IPython by typing either quit or control-z. Then at the command prompt type:
enpkg ipython
This will use the Enthought package installer to download and build the most recent version of IPython (currently 0.13.1). Do the same for Pandas:
enpkg pandas
should update you to the most recent version of Pandas. Still need to update versions of NumPy and SciPy and install PyMacLab. Before we can do that we need to download distribute and then pip. Instructions on obtaining and installing distribute and pip can be found on this blog (ignore the stuff about powershell and vitualenv for now). More info on how to install distribute and pip.
Download and install the most recent stable release of Dynare (which will include Dynare++ as well!) from the Dynare website.
Unless you have a MatLab license, you will need to install octave in order use Dynare (you can still use Dynare++ from the command line to solve models, but estimation capabilities are limited to non-existent in Dynare++). The versions of Octave that are compatible with Dynare can be downloaded from the Dynare website.
Will want to have a proper text editor (Notepad is not an option!). Is Emacs the solution? Maybe Notepad++ would be better. Perhaps an IDE like Spyder?