Computable simulation of markets and effects of economic and ecological policies 2400-PL3SL309A
What is a market? There is no clear definition, as it depends on the phenomenon being analyzed. The purpose of the seminar is to learn to analyze markets based on available statistical data. Statistical offices publish input-output balances that shows the relationship between sectors. The aggregate product of a sector will form a separate market. If more detailed data are available, we can define the market in a different way. We will use GAMS (general algebraic modeling system) software to run a computer simulation for a selected market or economy. Students will be able to learn how to create a simple market model and run simulations using this software.
The goal of the seminar is to help students write an undergraduate thesis. I welcome proposals related to market research, public policy analysis, economic modeling, but not only. I am open to other proposals for topics submitted by students. In class, we will work on selecting a topic, appropriate selection of literature, compilation of data, solvers selection, drawing conclusions.
Examples of topics can be found here: http://coin.wne.uw.edu.pl/kiuila/CGE/topics.docx
An example of an undergraduate dissertation topic for those not interested in computer simulations could be a study of the effectiveness of the Office of Competition and Consumer Protection. This institution detects a lot of cases of monopoly activities, but they are not necessarily able to prevent the detected activities. So you can check what is the ratio of detected monopoly activities to prevented activities given the expenses incurred. Another suggestion for work could be research on the rationality of gamblers. For example, an increase in the jackpot causes an increase in interest in this game and more people buy a lottery ticket. Is this behavior rational? The more people participate in the game, the less likely it is that the full jackpot will be won. Another suggestion could be a study devoted to the choice of locations for the placement of gas stations. What rationale do companies use when choosing this or that location of their gas station.
Type of course
Course coordinators
Learning outcomes
Upon completion of the seminar, students will be able to conduct simple simulations of economic activities, use GAMS software, analyze input-output and other statistical data, and conduct market analysis.
Assessment criteria
In the first semester, the passing of the course is awarded on the basis of literature review (which can be used in the thesis) or learning new skills to be used in the thesis (e.g. programing language MPSGE), or simple computable simulations prepared for your thesis.
In the second semester, the passing of the course is awarded when the student completes her/his bachelor thesis.
Attendance verification– the attendance is not necessary, but the thesis progress is required.
Bibliography
GAMS documentation, http://www.gams.com/docs/document.htm. The free version is enough to provide simple simulations
A. Brook, D.Kendrick, A.Meeraus (1988), GAMS a User’s Guide, The Scientific Press
E. J. Chambers and D. F. Gordon (1966), "Primary products and economic growth: an empirical measurement", Journal of Political Economy 74, 315-332.
R. W. Fogel (1967), "The specification problem in economic history", Journal of Economic History 27, 283-308.
R. W. Jones (1965), "The structure of simple general equilibrium models", Journal of Political Economy 73, 557-572.
Z.Wang, J.Slagle (1996), “An Object-oriented Knowledge-based Approach for formulating applied general equilibrium models”, Journal of Economic Dynamics and Control 20, 209-236
I.S.Wing (2004), Computable general equilibrium models and their use in economy-wide policy analysis: Everything you ever wanted to know (but were afraid to ask), MIT Technical Note 6
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: