Description

The purpose of this unit is to provide economics and econometrics students with an overview of the major types of macroeconometric models used in practice. At least two major Australian macroeconometric models are discussed in detail. Topics include: a taxonomy of macroeconometric models from Klein to Johansen; the solution of linear and non-linear systems; multiplier analysis in linear and non-linear systems; model simulation; policy analysis; the Orani model; the Murphy model; the Access Economics Model (AEM); the Treasury Macroeconomic Model of the Australian Economy (TRYM); the Monash model. Familiarity with matrix algebra is desirable, but not essential. Model simulations are implemented using an econometric computer package.