364-1032-00L  Simulation Techniques for Applied Microeconomics

SemesterFrühjahrssemester 2014
DozierendeJ. R. Markusen, P. Egger, S. Rausch
Periodizitätjährlich wiederkehrende Veranstaltung
LehrspracheEnglisch



Lehrveranstaltungen

NummerTitelUmfangDozierende
364-1032-00 GSimulation Techniques for Applied Microeconomics
Block course
23.-27.6.2014, 9:00-17:00 h
35s Std.J. R. Markusen, P. Egger, S. Rausch

Katalogdaten

KurzbeschreibungThe objective of this course is to provide an introduction to simulation modeling in microeconomics. There will be an emphasis on simple general-equilibrium models (which cannot be solved analytically) using common and well-known problems in problems in public economics, labor economics, international trade, environmental economics, industrial organization and in other applied micro fields.
LernzielThis PhD block course introduces students to simulation modeling in microeconomics. There seems to be an increasing use of simulation techniques in economics. There are several
reasons for this: (1) for theoretical modeling, traditional analytical methods have sharp
limitations. (2) for empirical analysis, traditional canned software might not be adequate for
some questions and there is a huge role for simulations in performing counter-factual
experiments on results. (3) many authors effectively use simulations to provide numerical (and
then graphical) examples of opaque analytical results. The course is designed to be taught over a five day period for first and second year PhD students in economics or related disciplines.
SkriptChap 1: Introduction to GAMS for economic problems
Chap 2: Examples of economic equilibrium problems translated into GAMS
2.1 Simple supply-demand problem illustrating complementarity
2.2 Maximization of utility subject to a linear budget constraint
Formulated as a NLP problem:
Formulated as an MCP using first-order conditions:
Formulated as an MCP using Marshallian and Hicksian demand functions:
2.3 Extension of the utility optimization problem: add a rationing constraint
Formulated as a NLP problem and an MCP.
Formulated as an MPEC
Automating scenario generation
2.4 Toward general equilibrium: a simple one-good, one-factor, one consumer
example
Chap 3: The Basic Closed-Economy General-Equilibrium Model as an MCP
3.1 The structure of a general-equilibrium model: optimization at the sector and
household level
3.2 Micro-consistent data: product exhaustion and market clearing
3.3 Calibration and replication: background: production, cost and expenditure
functions, Shepard's lemma for the Cobb-Douglas function
3.4 Two goods, two factors, one representative consumer
3.5 Initially slack activities
3.6 Labor-leisure decision
3.7 Two households with different preferences and endowments
Chap 4: Examples of Familiar Industrial-Organization Problems Modeled in GAMS
4.1 Cournot and Bertrand oligopoly with continuous strategies
Application to strategic trade policy
4.2 Nash equilibria with discrete strategies
4.3 An insurance problem illustrating moral hazzard and adverse selection
Chap 5: Examples of Uses of the NLP Solver in Familiar Economics and Statistics Uses
5.1 OLS as an NLP problem
5.2 OLS one step up: constrained non-linear least squares with the NLP solver
5.3 Reading and Writing to/from Excel
5.4 Balancing a matrix to create micro-consistent data using NLP
5.5 Matrix inversion as an MCP
5.6 Structural estimation and general-equilibrium counterfactuals using MPEC
Chap 6: General Equilibrium with Distortionary Taxes, Public Goods, Externalities,
Optimal Taxation and Redistribution Policies
6.1 Taxes in the benchmark data
6.2 Labor supply taxation: introducing equal-yield tax reform
6.3 Public consumption goods
6.4 Optimal provision using a Samuelson rule
6.5 Public intermediate (infrastructure) good with optimal provision
6.6 Pollution from production affects utility
6.7 Optimal taxation and redistribution
Chap 7: Adding Scale Economies and Imperfect Competition to General Equilibrium
7.1 A brief introduction to the CES function - more later
7.2 Monopoly, with fixed costs (increasing returns)
7.3 Oligopoly: Cournot competition with identical products and free entry
7.4 Monopolistic-competition I: large group
7.5 Monopolistic-competition II: small group
Chap 8: Open Economy Models for Competitive Economies
8.1 Small open economy
8.2 Small open economy: tariffs versus trade costs
8.3 Small open economy: calibrating to tariffs in the benchmark
8.4 Small open economy: modeling a quota
8.5 Large economy and the optimal tariff (rest of world not explicitly modeled)
8.6 Two-country Heckscher-Ohlin model: Nash tariffs as an iterative MPEC
Chap 9: Open Economy Models for Imperfect Competition and Scale Economies
9.1 A two-country oligopoly model
9.2 A two-country monopolistic-competition model
9.3 Monopolistic-competition with horizontal multinationals
Chap 10: Toward CGE Modeling
10.1 CES functions and the calibrated-share form
10.2 The MPS/GE subsystem of GAMS
10.3 The Armington assumption
10.4 From an IO Table into GAM
10.5 A more complete IO calibration example using sets
Chap 11: Basics of Dynamic Modeling
11.1 Comparative steady-state analysis
11.2 Converting Infinite Horizon Problem to an MCP

Leistungskontrolle

Information zur Leistungskontrolle (gültig bis die Lerneinheit neu gelesen wird)
Leistungskontrolle als Semesterkurs
ECTS Kreditpunkte3 KP
PrüfendeS. Rausch, P. Egger
Formunbenotete Semesterleistung
PrüfungsspracheEnglisch
RepetitionRepetition nur nach erneuter Belegung der Lerneinheit möglich.
Zusatzinformation zum PrüfungsmodusStudents will be expected to write a short paper dealing with concepts from the course.

Lernmaterialien

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Es werden nur die öffentlichen Lernmaterialien aufgeführt.

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Doktorat Departement Management, Technologie und ÖkonomieLehrangebot Doktorat und PostdoktoratWInformation