ETC4430

Quantitative economic policy

Professor Alan Powell

7 points
* Two 1.5-hour lectures per week
* Second semester
* Clayton
* Prerequisites: ECC2020 and one of ETC3400 or ETC3410

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, final 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%