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ETC4430 - Quantitative economic policy

6 points, SCA Band 3, 0.125 EFTSL

Undergraduate, Postgraduate Faculty of Business and Economics

Leader(s): Professor John Madden


Clayton Second semester 2009 (Day)


This unit covers the theoretical structure and application of computable general equilibrium (CGE) models. Topics include:

  • the derivation of the model's non-linear equation system
  • evaluation of coefficients and parameters, model closure, specification of economic shocks, solution techniques and interpretation of results.
During hands-on computing sessions, students will undertake simulations of a series of economic policy questions and analyse results.


The learning goals associated with this unit are to:

  • acquire an understanding of the main elements of the theoretical structure of a computable general equilibrium (CGE) model
  • acquire an understanding of how a CGE model is calibrated and implemented on computer
  • develop the ability to conduct basic simulations with a comparative-static CGE model
  • acquire skills in the analysis of the more readily interpretable model results in terms of model theory, data base, closure and shocks
  • develop an elementary understanding of the key features of dynamic CGE models.


Within semester assessment: 40%
Examination (3 hours): 60%

Contact hours

Two 1.5-hour lectures per week



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