NIFK14018U Applied General Equilibrium Analysis

This course introduces students to computable general equilibrium modeling in the form of interregional input-output models. Computable general equilibrium models are widely used around the world within academia, consulting, international and national institutions and NGOs. Interregional input-output models are used to study the spill-over and feedback mechnism in complex regional and local economies and can be used to forecast and to evaluate impacts of changes in regional economic policies and shocks. The interregional input-output model focuses on the complex pattern of feed-back and spillover mechanism in regional and local economic systems. The simple interregional model, which will be developed through the course, have a simple production and consumption structure and does not take into account impacts from changing prices.

The course aims at providing the student basic knowledge of and ability to build and work with economic models. This involves building data, model calibration and replication and in turn to use the model for projections, impact assessment or multiplier experiments. Through a mix of lectures focusing on the technical and theoretical basis for modeling with interregional input-output models and exercises with a simple interregional model for Denmark, which is developed and made operational during the course, the course will develop the student's skills to conduct own empirical analysis and practical activitities i relation to application of economic models.

The course enables the student to develop the model to include more complexity in the local economic system as well as to include environmental and food production modules in the model.