Applied econometric modelling
Professor Alan Powell and Dr Graham McLaren
6 points * Two 1-hour lectures and one 1-hour tutorial per week * Second semester * Clayton * Prequisite: ECM3410
Objectives On completion of this subject students should appreciate the general characteristics of a modern econometric model of the Australian economy, and in addition, understand the detail of construction and working of some sectors of the model; understand the model's operation as a tool for forecasting and policy analysis. These objectives are achieved through a study of the model's foundation in economic theory, the features which distinguish it from other empirical models, and some recent developments in applied modelling, as they are used in this model and other models.
Synopsis This subject comprises a detailed study of the Murphy Model of the Australian economy. Attention is given to its theoretical foundations, to its application as a model for forecasting and policy analysis, and to the incorporation of forward-looking expectations and the error correction mechanism. Students will use the model as a simulation tool for policy analysis.
Assessment Written (2 assignments [computing and reports]): 40% * Examination (2 hours): 60%
Prescribed texts
Powell A A and Murphy C W Inside a modern macroeconometric model: A guide to the Murphy Model Springer-Verlag, 1995