Undergraduate, Postgraduate - UnitETC4430 - Quantitative economic policy

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Level	Undergraduate, Postgraduate
Faculty	Faculty of Business and Economics
Offered	Clayton Second semester 2012 (Day)
Coordinator(s)	Professor John Madden

Synopsis

This unit covers the theoretical structure and application of computable general equilibrium (CGE) models. Topics include:

• the derivation of the model's non-linear equation system
• evaluation of coefficients and parameters, model closure, specification of economic shocks, solution techniques and interpretation of results.

During hands-on computing sessions, students will undertake simulations of a series of economic policy questions and analyse results.

Outcomes

The learning goals associated with this unit are to:

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

Assessment

Within semester assessment: 40%
Examination (3 hours): 60%

Chief examiner(s)

Professor John Madden

Contact hours

3 hours per week