Macroeconometrics (ECOM40003)

HonoursPoints: 12.5Not available in 2025

You’re viewing the 2025 Handbook:
Or view archived Handbooks

Overview

FeesLook up fees

Decision making in central banks, consulting firms, and other institutions relies on advanced empirical analyses of economic data. This subject provides a cutting-edge econometric methodology for empirical macroeconomic research. The focus is put on modelling unit-root nonstationary processes that describe many economic time series well. Applications of the considered econometric techniques include forecasting and nowcasting macroeconomic variables including using big data, estimating the effects of monetary policy, as well as modelling of trend inflation. Topics in Climate Change include forecasting CO2 emissions for the 21st century and modelling long-run trends in global temperatures. Particular attention is paid to developing programming skills that allow for performing rigorous applied macroeconomic research in R.

Intended learning outcomes

On successful completion of this subject students should be able to:

  • Apply quantitative analysis to model and forecast the essential variables and quantities for the empirical macroeconomic research.
  • Understand, derive, and program estimation algorithms for univariate and multivariate structural models and for economically interpretable quantities such as impulse response functions and forecast error variance decompositions, inflation trend, output gap, etc.
  • Comprehend and apply Bayesian analysis of unit-root nonstationary variables in uni- and multi-variate systems.
  • Forecast economic variables of interest, with the focus on density forecasting, using big data with dedicated models applying appropriate numerical techniques that make the task computationally feasible.
  • Use structural multivariate models to identify the monetary policy shock and estimate its effect on the real business cycle indicators.
  • Understand and estimate state-space models in macroeconomic applications.
  • Apply macroeconomic modeling in climate change topics.

Generic skills

On successful completion of this subject students should have improved the following generic skills:

  • Evaluation of ideas, views and evidence;
  • Synthesis of ideas, views and evidence;
  • Critical thinking;
  • Summary and interpretation of information;
  • Using computer programs;
  • Problem solving skills; and
  • Written communication.

Last updated: 4 March 2025

Eligibility and requirements

Prerequisites

Admission into or selection of one of the following:

  • BH-COM Bachelor of Commerce (Degree with Honours)
  • Economics specialisation (formal) in the BH-ARTS Bachelor of Arts (Degree with Honours)

AND

Code Name Teaching period Credit Points
ECOM40006 Econometrics 3
Semester 1 (On Campus - Parkville)
 12.5

Corequisites

None

Non-allowed subjects

Code Name Teaching period Credit Points
ECOM90007 Macroeconometrics
Not available in 2025
 12.5

Recommended background knowledge

Please refer to Prerequisites and Corequisites.

Inherent requirements (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

Last updated: 4 March 2025

Assessment

DescriptionTimingPercentage

Assignment

  • 1500 words (equivalent)
Week 413%

Assignment

  • 1500 words (equivalent)
Week 813%

Assignment

  • 1500 words (equivalent)
Week 1214%

End-of-Semester Examination

  • 3 hours
During the examination period60%

Last updated: 4 March 2025

Dates & times

Not available in 2025

Time commitment details

170 Hours

What do these dates mean

Visit this webpage to find out about these key dates, including how they impact on:

  • Your tuition fees, academic transcript and statements.
  • And for Commonwealth Supported students, your:
       -  Student Learning Entitlement. This applies to all students enrolled in a Commonwealth Supported Place (CSP).
     

    Subjects withdrawn after the census date (including up to the ‘last day to withdraw without fail’) count toward the Student Learning Entitlement.

Last updated: 4 March 2025

Further information

  • Texts

    Prescribed texts

    You will be advised of prescribed texts by your lecturer.

  • 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: 4 March 2025