Preliminary knowledge

Advanced knowledge in the field of international trade

Abstract

The course provides deep knowledge of design and implementation of Computable General Equilibrium (CGE) models. 

Qualification Targets

Students

• have a deepened understanding of computable general equilibrium models
• master the basics of implementation of the general equilibrium models
• are able to adopt this methodology in their independent quantitative analyses
• can describe and interpret the results from general equilibrium models linking them to relevant theory

Contents

• Introduction to computable general equilibrium analysis
• Comparative static analysis of a closed economy with two goods and two production factors
• Extensions of the basicmodel for a closed economy with heterogeneous labor, heterogeneous households and endogenous labor supply
• Models of open economies: extension of the basic model for an open economy with import tariffs and quotas and other trade policies
• General equilibrium models with imperfect competition on the goods markets

Literature

• Francois/Reinert, Applied Methods for Trade Policy Analysis;
• Jones, The Structure of Simple General Equilibrium Models;
• Shoven/Whalley, Applying General Equilibrium;
• Articles from economics literature

Teaching concept

The class is held in the form of lectures. The construction and implementation of the abovementioned models is illustrated by using a special software (GAMS, „General Algebraic Modeling System“) as well as a special programming language for general equilibrium models (MPSGE, „Mathematical Programming System for General Equilibrium“).

Participants

• BWL EaF Master 2015>Wahlpflichtbereich >Modul "Specification and Simulation of General Equilibrium Models "1st-3rd Semester, Elective
• Mathe Master 2013>Anwendungsfach "Wirtschaftswissenschaften" >Schwerpunkt "VWL-M I" >Modul "Specification and Simulation of General Equilibrium Models "1.4st Semester, Elective
• Mathe Master 2013>Anwendungsfach "Wirtschaftswissenschaften" >Schwerpunkt "VWL-M II" >Modul "Specification and Simulation of General Equilibrium Models "1.4st Semester, Elective
• VWL Master 2009-V2013>Wahlpflichtbereich I >Modul "Specification and Simulation of General Equilibrium Models "1st-3rd Semester, Elective
• WiMathe Master 2013>VWL-M I >Modul "Specification and Simulation of General Equilibrium Models "1st-4th Semester, Elective
• WiMathe Master 2013>VWL-M II >Modul "Specification and Simulation of General Equilibrium Models "1st-4th Semester, Elective