Content, progress and pedagogy of the module

The focus of the module Economic Models I was primarily on theoretical models for a closed economy. The main purpose was to provide an introduction to how students could gain experience in developing their own economic models.

In this elective course, the techniques and methods learned in the aforementioned course are built upon. The focus of this course will be on more complex models. This means that students will work with models that reflect open economies, such as the Danish economy, and with models that can reproduce the observable development in specific macroeconomic variables based on actual data available in databases. As a result, the models become easier to apply to current economic discussions.

The course can therefore be seen as a great opportunity to set up a model that can later be used in a semester project.

Learning objectives

Knowledge

The aim is that after the module the student has knowledge of:

• how to identify and collect data that highlights the link between the financial side and the real side of the economy.
• how to set up their own SFC models, where the complexity of the model is determined solely by individual ambitions and abilities.
• differences between models for closed economies and open economies.

Skills

The aim is that after the module the student has skills to:

• constructing SFC models that contain empirically valid parameters.
• solving models numerically through computer simulation.
• critically evaluating both their own and others' models.

Competences

The aim is that after the module the student has the competencies in:

• independently analyze the differences between closed and open economies.
• construct their own models to analyze macroeconomic effects of observed changes in both the real side of the economy and the financial side.
• independently apply econometrics via software to estimate parameters.

Type of instruction

For further information see §17.

Exam

Exams