316-451 Modelling the Australian Macroeconomy

316-312 Macroeconomics, and either 316-316 Basic Econometrics or 316-317 Econometrics.

This subject examines the use of open economy macroeconomic models in economic policy analysis. Topics include important Australian macroeconomic data sets; the design of macroeconometric and VAR models of the Australian economy; the derivation of policy multipliers; policy simulation techniques and sensitivity analysis of economy-wide models; recent developments in the theory of economic growth; and an examination of some current issues in macroeconomic policy.

• High level of development: statistical reasoning; application of theory to practice; interpretation and analysis; critical thinking; synthesis of data and other information; receptiveness to alternative ideas.

• Moderate level of development: oral communication; written communication; collaborative learning; problem solving; evaluation of data and other information; use of computer software.

• Some level of development: team work; accessing data and other information from a range of sources.

A 3-hour end-of-semester examination (80%) and class assignments totalling approximately 2000 words (20%).