Exercise

General Equilibrium Models of Open Economies

Name in diploma supplement

General Equilibrium Models of Open Economies

Organisational Unit

Lehrstuhl für VWL, insb. Internationale Wirtschaftsbeziehungen

Lecturers

Prof. Dr. Volker Clausen

Cycle

every second winter semester

SPW

2

Language

English

Participants at most

no limit

Participants

• BWL EaF MasterWahlpflichtbereich 1.-3. Sem, Elective, Module Specification and Simulation of General Equilibrium Models
• VWL MasterWahlpflichtbereich I 1.-3. Sem, Elective, Module Specification and Simulation of General Equilibrium Models
• Mathe MasterAnwendungsfach "Wirtschaftswissenschaften"Schwerpunkt "VWL-M II" 1.4. Sem, Elective, Module Specification and Simulation of General Equilibrium Models
• Mathe MasterAnwendungsfach "Wirtschaftswissenschaften"Schwerpunkt "VWL-M I" 1.4. Sem, Elective, Module Specification and Simulation of General Equilibrium Models
• WiMathe MasterVWL-M I 1.-4. Sem, Elective, Module Specification and Simulation of General Equilibrium Models
• WiMathe MasterVWL-M II 1.-4. Sem, Elective, Module Specification and Simulation of General Equilibrium Models

Abstract

This tutorial provides students with programming experience while constructing and implementing the computable general equilibrium models. 

Qualification Targets

Students

• learn the programming language GAMS, the model language MCP and the meta-language MPSGE
• understand simple basic models and their extensions
• are able to implement the basic models independently both in MCP and MPSGE
• can modify the given models in order to capture other situations
• can interpret the results and link them to the relevant economic theory

Contents

• Introduction to computable general equilibrium analysis
• Comparative static analysis of closed economy with two goods and two production factors
• Extensions of the basic model for closed economy with heterogeneous labor, heterogeneous households and endogenous labor supply
• Models of open economies: extension of the basic model for open economy with import tariffs and quotas as well as with international mobile capital
• General equilibrium models with imperfect competition on the goods markets

Literature

Markusen, J. R., The Markusen Examples, www.mpsge.org