|Year of offer||2019|
|Subject level||Graduate coursework|
|Fees||Subject EFTSL, Level, Discipline & Census Date|
This subject examines the use of macroeconomic models in economic policy analysis. The overall aim of the course is to discuss system approaches to estimating the macro-economy. Special attention will be paid to the SVAR and DSGE approaches and the relationship between them. The course will also include a discussion of optimal and unconventional policies. Topics include: impulse response functions, policy multipliers; policy simulation techniques and sensitivity analysis of economy-wide models. Applications to Australia will also be discussed.
Intended learning outcomes
On successful completion of this subject students should be able to:
- Specify and estimate VAR/SVAR models;
- Generate and understand impulse response functions and forecast error variance decompositions;
- Understand alternative identification strategies and apply them to identify monetary policy shocks, fiscal shocks and technology shocks;
- Specify a basic New Keynesian model; generalise it for a small open economy as well as other commonly included extensions in empirical applications;
- Apply econometrics methods (Generalized Method of Moments and the Kalman filter) commonly used to estimate DSGE models;
- Analyse policies by simulating DSGE models;
- Understand the relevance of optimal and unconventional policies;
- Evaluate recent central bank and academic research using VAR/SVAR and small-open economy DSGE models.
On successful completion of this subject, students should have improved the following generic skills:
- high level of development: statistical reasoning; application of theory to practice; interpretation and analysis; critical thinking; synthesis of data and other information; receptiveness to alternative ideas.
- moderate level of development: oral communication; written communication; collaborative learning; problem solving; evaluation of data and other information; use of computer software.
- some level of development: team work; accessing data and other information across a range sources.
Eligibility and requirements
ECON40002 Advanced Macroeconomics and one of ECOM40006 Econometric Techniques or ECOM90013 Econometric Techniques
|Code||Name||Teaching period||Credit Points|
ECOM40005 Modelling the Australian Macroeconomy
|Code||Name||Teaching period||Credit Points|
|ECOM40005||Modelling the Australian Macroeconomy||
Recommended background knowledge
Please refer to the prerequisites.
Core participation requirements
The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.
Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home
- A 2-hour end-of-semester examination (60%)
- Four class assignments (approximately 750 words each) to be completed approximately in weeks 3,6,9 and 12 (40%).
Note: Successful completion of this subject requires a pass (50%) in the final exam.
Dates & times
- Semester 2
Principal coordinator Guay Lim Mode of delivery On Campus — Parkville Contact hours 3 hours of lectures/seminars per week. Total time commitment 170 hours Teaching period 29 July 2019 to 27 October 2019 Last self-enrol date 9 August 2019 Census date 31 August 2019 Last date to withdraw without fail 27 September 2019 Assessment period ends 22 November 2019
Semester 2 contact information
Time commitment details
Estimated total time commitment of 170 hours per semester
You will be advised of prescribed texts by your lecturer.
- Subject notes
Students may not gain credit for both ECOM90012 Modelling the Australian Macroeconomy and ECOM40005 Modelling the Australian Macroeconomy.
- Related Handbook entries
- Available through the Community Access Program
About the Community Access Program (CAP)
This subject is available through the Community Access Program (also called Single Subject Studies) which allows you to enrol in single subjects offered by the University of Melbourne, without the commitment required to complete a whole degree.
Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.
- Available to Study Abroad and/or Study Exchange Students
This subject is available to students studying at the University from eligible overseas institutions on exchange and study abroad. Students are required to satisfy any listed requirements, such as pre- and co-requisites, for enrolment in the subject.