wir760 - Computable General Equlibrium Analysis (Complete module description)

None

During the course work students will learn how to set up computable general equilibrium (CGE) models step-by-step using the GAMS software (General Algebraic Modeling System) and apply them to actual policy issues of broader interest.

This course provides a practical guideline to CGE modeling. We start with the formulation of a simple stylized CGE model for open economies and lay out how such a model can be matched (calibrated) to empirical data. We will then discuss several refinements of our prototype model to investigate contemporary policy issues such as environmental tax reforms or trade restrictions (e.g. the implementation of import tariffs and quotas). The single country model will be subsequently extended towards a multi-region model framework which accommodates to investigate in appropriate detail the economic impacts of multilateral policy initiatives such as trade policy reforms or international climate agreements.

end of semester

Term paper: numerical simulation analysis on an economic policy issue, including explanatory text (problem, methodology, data, model formulation, simulation results/interpretation of results, conclusions)