Applied general equilibrium economics
Professor Peter Dixon and Professor Brian Parmenter
6 points * Two 1-hour lecture/tutorial sessions per week * Second semester * Clayton * Prerequisites: ECO2020 or approval of lecturers
Objectives On completion of the subject students should have an introductory understanding of all aspects of applied general equilibrium (AGE) economics - theory, data, computing and application; understand how AGE models represent linkages in the economy between industries, households, the government and foreigners; be able to explain, using an AGE model, the structural and aggregate effects on the economy of shocks such as change in protection, real wage rates, tax rates, environmental policies, and capital inflow.
Synopsis The course covers the underlying theory and applications of applied general equilibrium modelling. It provides an introduction to associated issues in data compilation and computing. Students must be prepared to use elementary calculus and matrix algebra.
Assessment Written (assignment and a 1500-word report): 20% * Examination (3 hours): 80%