Program Overview

Program Overview

The University of Copenhagen offers a course in Applied Economic Modelling, which focuses on translating theoretical models from macroeconomic theory into practical, computer-based models that can be used for analysis with real data.

Course Description

The course covers the application of economic models to analyze various policy interventions, including fiscal, labor market, trade, environmental, and tax policies. Students will learn how to build and calibrate models, as well as how to analyze the results of these models. The course also introduces students to existing economic models, such as DREAM, MAKRO, REFORM, and SMILE, which are used to evaluate the quantitative consequences of policy reforms.

Learning Objectives

After completing the course, students are expected to be able to:

• Define key concepts in the field, such as general equilibrium, calibration, and sensitivity analysis.
• Explain the main elements of building a general equilibrium model.
• Analyze quantitative results from models and evaluate the assumptions underlying these models.
• Translate a theoretical model into a practical model using programming in GAMS.
• Plan and conduct a quantitative analysis of a model programmed in GAMS.

Course Structure

The course consists of 2 hours of lectures and 3 hours of class instruction per week, from week 36 to 50 (excluding week 42). The lectures cover the principles of model building, while the class instruction focuses on practical applications of the models.

Teaching Materials

The course materials include:

• Andersen, M. & P. Schou (2006): DREAM Documentation 2006.
• Petersen, T.W. (1998): "Introduktion til CGE-modeller". Economic Modelling Working Paper Series 1998:3. Danmarks Statistik. (34 pages).
• Stephensen, P. (2016) Noter til CGE-modellering. Kan downloades løbende på Absalon. (appendix ikke pensum)
• Stephensen, P. (2016) Noter om DREAM I & II. Kan downloades på Absalon.
• Stephensen, P., J. Ejarque, G. Høegh og M. Bonde (udgives senere) MAKRO Documentation 2019
• Stephensen, P., G. Høegh og P. Bache (2014) REFORM-modellen. DREAM-arbejdspapir.
• Stephensen, P. og Bøge Jensen, R (2016) Ufuldkommen konkurrence i en CGE-model. DREAM-arbejdspapir.
• Stephensen, P. og T. Markeprand (udgives senere) Oversigt over SMILE
• Shoven, J. B. & J. Whalley (1992): ”Applying General Equilibrium”

Prerequisites

The course is open to students from Danish universities and the Open University. It is recommended that students have a background in micro- and macroeconomics, equivalent to the courses "Mikroøkonomi I", "Mikroøkonomi II", "Makroøkonomi I", and "Makroøkonomi II" at the University of Copenhagen.

Examination

The course is examined through a 12-hour home assignment, which is individual. Students are allowed to work in groups on the coding, but the assignment must be submitted individually. The examination also includes a 20-minute oral re-examination with 20 minutes of preparation.

Course Type

The course is a single-subject course with daytime classes (tompladsordning).

Workload

The estimated workload for the course is:

• Forelæsninger: 42 hours
• Holdundervisning: 28 hours
• Forberedelse (anslået): 124 hours
• Eksamen: 12 hours
• Total: 206 hours

Course Information

• Undervisningssprog: Dansk
• Kursusnummer: AØKA08233U
• ECTS: 7.5 ECTS
• Niveau: Kandidat/Bachelor
• Varighed: 1 semester
• Placering: Efterår
• Pris: Information om priser mm for enkelfag, efteruddannelse (åbent universitet) se Uddannelse på Økonomisk Institut

Responsible Institute

The course is offered by the Department of Economics, University of Copenhagen.

Responsible Faculty

The course is part of the Faculty of Social Sciences, University of Copenhagen.

Course Responsible

The course is taught by Peter Stephensen and Andreas Østergaard Iversen.