Applied General Equilibrium Analysis

Course content

This course will introduce students to general equilibrium modeling. Computable general equilibrium models (CGE) are widely used around the world within academia, consulting, international and national institutions and NGOs. CGE models are used to study the allocational and distributional effects of economic policies and the economic implications of economic shocks. Such models simulate a market economy in which prices or quantities adjust to clear markets. From a mathematical viewpoint CGE models consist of a system of nonlinear simultaneous equations that represent the constrained optimizing behavior of economic actors.

 

The course aims at providing the student basic knowledge of and ability to use computable general equilibrium models.  Through a mix of lectures and exercises within the fields of general modeling and themes within agricultural, environmental and development economics the course will develop the student's skills to conduct own empirical analysis.

 

Education

MSc Programme in Agricultural Economics
MSc Programme in Environmental and Natural Resource Economics

Learning outcome

The course aims at imparting to the students a thorough understanding of CGE modeling, how these model are use in policy and the ability to undertake own model simulation. After completing the course it is expected that the student is able to:

Knowledge:
- Reflect about strength and weaknesses’ of the AGE method

- Reflect about the theory behind most AGE models

- Reflect about the importance of the data used in AGE models

Skills:
- Formulate and run scenarios using a CGE model.

- Interpret model result.

Competencies:
- Understand the basic step in using CGE model.

- Understand model results and its dependence of theory and data used.

- Undertake a critical view on existing CGE work.

 

A mix of lectures and exercises

Will be announced at the beginning of the course on Absalon

competences corresponding to

- Basic microeconomics: Production Economics and consumer behavior
- An understanding of key national accounts concepts
- Calculus

ECTS
7,5 ECTS
Type of assessment
Oral examination, 20 minutes
The oral exam is based on the written report from the students own selected project. The project work can be done in groups but the oral exam is individual.

Oral examination, 20 minutes
Aid
Written aids allowed
Marking scale
7-point grading scale
Censorship form
No external censorship
More than one internal examiner
Criteria for exam assessment

See the Learning Outcomes

Single subject courses (day)

  • Category
  • Hours
  • Lectures
  • 42
  • Exercises
  • 42
  • Project work
  • 52
  • Preparation
  • 70
  • English
  • 206