Computational Economics

This subject has the following teaching availabilities in 2016:

Approval of Department of Economics Graduate Programs Director.

None

Undergraduate preparation in calculus and linear algebra.

None

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

This course is an advanced introduction to computational methods for economists, methods that increasingly play an essential role in applied economic research. Students will learn to formulate and to solve structural economic models and to apply these methods to substantive issues in econometrics, industrial organisation, labour economics, and macroeconomics. The course emphasises both theoretical knowledge of computational methods and practical skills. Programming will be done in MATLAB.

By the end of this course, students will have received a detailed introduction to:

• MATLAB and its Toolboxes;
• Algorithmic evaluation;
• Computational linear algebra;
• Numerical techniques for unconstrained optimisation;
• Numerical techniques for solving systems of nonlinear equations;
• Approximation methods;
• Numerical integration (quadrature and Monte Carlo simulation methods);
• Numerical techniques for constrained optimisation; and
• Numerical dynamic programming.

• Five 600 word assignments (problem sets and computer exercises) totalling 3,000 words, due in Weeks 3, 5, 7, 9 and 11 (35%);
• 45-minute group presentation (10%), due Week 12 (10%); and
• Final project of 2,500 words, due at end of exam period (55%).

Judd, K. Numerical Methods in Economics, MIT Press.

This subject is not available as a breadth subject.

• High level of development: problem solving; collaborative learning; team work; application of theory to practice; use of computer software; interpretation and analysis; critical thinking.
• Moderate level of development: written communication; evaluation of data and other information; statistical reasoning; receptiveness to alternative ideas.
• Some level of development: oral communication; synthesis of data and other information; accessing data and other information from a range of sources.