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EC309 Applied Policy Modelling


Yes, numbers permitting

Module leader

Jeffery Round and Carlo Perroni


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Teaching format

2 hours per week for 20 weeks: mainly lectures with occasional seminars and computing classes

Assessment methods

2 x 2,000-word assignments (20%) AND 3-hour examination (80%)

Academic aims

The module aims to provide insights into key technical areas of applied economic analysis which are not provided in other core or optional modules; and to expose students to in-depth applications of policy modelling techniques in two areas of applied economic policy analysis: environmental economics and development economics

Learning objectives

By the end of the module students will have a knowledge of modern methods of social accounting; an understanding of some alternative approaches to multi-sectoral modelling from the standpoint of numerical simulation methods (fixed price and flexible price modelling); and an insight into applications of these models in areas of current policy concern (e.g. development and environmental economics)

Learning methods

The first term of the module follows a consecutive, building-block approach - each element of the module is constructed upon what has gone before, so it is particularly important to attend lectures and follow the reading associated with each lecture topic. The component on numerical simulation, using specialised computer software, is especially important. There is some scope in the latter part of the first and in the second term to select topics and specialising according to your personal interests either in environmental or development economics.


Term 1

1. Data, national accounts and Social Accounting Matrices

2. Input-output analysis and consistency models

3. Fixed price multiplier models and applications

4. Computable general equilibrium models: basic structure

5. Computable general equilibrium models: extended structure

6. Computable general equilibrium models: use of software

7. Policy models: income distribution and redistribution

9. Policy models: structural adjustment and poverty analysis

10. Policy models: regional analysis

Term 2

1. General equilibrium and market failure.

2. Externalities and the Coase Theorem.

3. Environmental regulation.

4. The price-based approach to environmental policy.

5. Measuring environmental costs and benefits

6. Applied environmental policy modelling.

7. The "double dividend" debate.

8. The economics of global warming.

9. Trade-environment policy linkages.

10. International environmental agreements.

Illustrative reading

Robinson, S. (1989), "Multisectoral models", chapter 18 in Chenery and Srinivasan (eds), Handbook of Development Economics, vol II, North Holland.

Tietenberg, T. (1996), Environmental and natural resource economics, 4th edn, New York, NY: Harper Collins.

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Past Exam Papers

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