ETC4430 - Quantitative economic policy

Leader: Associate Professor John Madden

Offered

Clayton Second semester 2007 (Day)

Synopsis

This course surveys contemporary macroeconometric and applied general equilibrium models as they are used for policy analysis. The focus of these models extends from fiscal, monetary and tax policy, through trade, tariffs and industry policy, to the environment and greenhouse gases. In their major written assignment, all students are expected to come to grips with some of the practical issues involved in policy modelling.

Objectives

The learning objectives of this unit are to:

• acquire an understanding of the main elements of the theoretical structure of a computable general equilibrium (CGE) model;
• acquire an understanding of how a CGE model is calibrated and implemented on computer;
• develop the ability to conduct basic simulations with a comparative-static CGE model;
• acquire skills in the analysis of the more readily interpretable model results in terms of model theory, data base, closure and shocks;
• develop an elementary understanding of the key features of dynamic CGE models.

Assessment

Written (assignments and exercises): 40%
Examination (3 hours): 60%

Contact hours

Two 1.5-hour lectures per week

Prerequisites

ECC2010 and one of ETC3400 or ETC3410