wir892 - Computational Economics

Module label	Computational Economics
Module code	wir892
Credit points	6.0 KP
Workload	180 h
Institute directory	Department of Business Administration, Economics and Law (Economics)
Applicability of the module	Master Applied Economics and Data Science (Master) > Empirical Methods Master's programme Social Sciences (Master) > Wahlpflichtmodule anderer Institute und Departments Master's Programme Sustainability Economics and Management (Master) > Supplementary Modules
Responsible persons	Böhringer, Christoph (module responsibility) Lehrenden, Die im Modul (authorised to take exams) Riesenbeck, Lukas (Module counselling) Schürer, Laura (Module counselling)
Prerequisites	None
Skills to be acquired in this module	Computer-based simulations play a key role for quantifying the economic impacts of policy reforms. Among numerical simulation methods, computable partial equilibrium (CPE) models are widely used in applied economic analysis. These models build on microeconomic theory for describing supply and demand behavior of economic agents on markets. Students will learn how to program such models and apply them to the impact assessment of trade, fiscal, or environmental policies.
Module contents	In the course, we start from basic microeconomic theory to describe the supply-side and demand-side responses on economic markets triggered by regulatory policy measures such as taxes or subsidies. We then translate simple theoretical models into computable partical equilibrium (CPE) models and use empirical data for model parametrization. Subsequently, the CPE models are used to quantify the economic efficiency impacts and the economic incidence of policy instruments such as taxes, subsidies, standards or quotas. For the implementation of the simulatoin models on the students’ PC we will learn a powerful state-of-the-art modeling language called GAMS (Generic Algebraic Modeling System) which initially had been developed for World Bank economists. The fundamental strength of GAMS lies in the ease with which algebraic models in economics and management (or other sciences) can be formulated and solved. Students enrolled to the course will receive a free GAMS license. For the examination, the students will be requested to adapt a basic market model towards a policy issue of their choice and provide a small written essay (max. 10 pages) on their applied analysis. For this, the students can team up in groups with 2 people and hand in their essay until the end of the summer semester.
Recommended reading	Tba
Links
Language of instruction	English
Duration (semesters)	1 Semester
Module frequency	Annual
Module capacity	14

Type of course	Comment	SWS	Frequency	Workload of compulsory attendance
Lecture		2	SuSe or WiSe	28
Seminar		2	SuSe or WiSe	28
Total module attendance time				56 h

Examination	Prüfungszeiten	Type of examination
Final exam of module	At the end of the lecture period	Portfolio