Lecture

General Equilibrium Models of Open Economies

Name in diploma supplementGeneral Equilibrium Models of Open Economies
Organisational Unit Lehrstuhl für VWL, insb. Internationale Wirtschaftsbeziehungen (http://www.iwb.wiwi.uni-due.de)
LecturersProf. Dr. Volker Clausen
SPW2LanguageEnglish
Cycleevery second winter semesterParticipants at most16

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
WIWI‑C0806 - Lecture: General Equilibrium Models of Open Economies