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Modelling the Australian Macroeconomy (ECOM90012)

Graduate courseworkPoints: 12.5On Campus (Parkville)

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Overview

Year of offer2019
Subject levelGraduate coursework
Subject codeECOM90012
Campus
Parkville
Availability
Semester 2
FeesSubject 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.

Generic skills

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

Prerequisites

ECON40002 Advanced Macroeconomics and one of ECOM40006 Econometric Techniques or ECOM90013 Econometric Techniques

Code Name Teaching period Credit Points
ECON40002 Advanced Macroeconomics
Semester 1
12.5
ECOM40006 Econometrics 3
Semester 1
12.5
ECOM90013 Econometrics 3
Semester 1
12.5

Corequisites

None

Non-allowed subjects

ECOM40005 Modelling the Australian Macroeconomy

Code Name Teaching period Credit Points
ECOM40005 Modelling the Australian Macroeconomy
Semester 2
12.5

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

Assessment

Description

  • 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 coordinatorGuay Lim
    Mode of deliveryOn Campus — Parkville
    Contact hours3 hours of lectures/seminars per week.
    Total time commitment170 hours
    Teaching period29 July 2019 to 27 October 2019
    Last self-enrol date 9 August 2019
    Census date31 August 2019
    Last date to withdraw without fail27 September 2019
    Assessment period ends22 November 2019

    Semester 2 contact information

Time commitment details

Estimated total time commitment of 170 hours per semester

Further information

  • Texts

    Prescribed texts

    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.

  • 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.

Last updated: 22 January 2019