Quantitative economic policy
Professor Alan Powell
Two 1.5 hour lectures per week * Second semester * Clayton * Prerequisites: ECO2020 and one of ECM3400 or ECM3410
Objectives On completion of this subject students should understand the econometric foundations of models used for quantitative analysis of economic policies; have the knowledge needed to assess existing models or build new models of their own.
Synopsis Topics include the development and evolution of reduced-form models prior to the Lucas critique; the subsequent shift toward structural modelling; econometric features of quantitative policy models, including appropriate functional forms and restrictions on parameters (flexibility, curvature restrictions, regularity); data sources and estimation strategies (systems of equations,fiml versus other approaches). The subject will include a critical survey of modern models for micro- and macroeconomic policy studies.
Assessment Written (assignments): 40% * Examination (2 hours): 60%