Economic Modelling

Course unit title

Economic Modelling

Course unit code

EKT807

Type of course unit (compulsory, optional)

Compulsory

Level of course unit (according to

EQF: first cycle Bachelor, second cycle Master)

Third cycle Doctor

Year of study when the course unit is delivered

(if applicable)

Year 1

Semester/trimester when the course unit is delivered

Semester 2

Number of ECTS credits allocated

4.8 ECTS

Name of lecturer(s)

Bambang Eko Afiatno, Ph.D.

Dr. Muryani

Rossanto Dwi handoyo, PhD

Learning outcomes of the course unit

Students will be able to: 1) critically evaluate and develop techniques for developing (deterministic) economic models; 2) conduct quantitative economic analysis. At the end of the course, they are expected to be able to develop a deterministic model with case studies of various economic and business phenomena. In addition, students are able to develop skills using quantitative models that are used to analyze economic problems and present them in written form and presentations.

Mode of delivery (face-to-face, distance learning)

Face to face (offline) and or distance learning (online)

Prerequisites and co-requisites (if applicable)

No

Course content

general, this course discusses analytical tools in quantitative form based on economics and mathematics. The topics discussed in this lecture are focused on the application of mathematics through economic models. In more detail, the scope of this course material is efficiency and productivity which consists of the concept of measuring efficiency and productivity, differences and similarities between measurement models and DEA. In addition, the theory of optimization using the MCDM/Goal Programming method and the theory of decision making using the AHP (analytic hierarchy process) method are also discussed. In the end, this economic model lecture closed with material based on the general equilibrium model, namely the IO (input-output) model, the SAM (social accounting matrix) model, and the CGE (computable general equilibrium) model.

Recommended or required

reading and other learning resources/tools

Optimization:

1. Chiang, Alpha C. dan Wainwright, Kevin. 2005. Fundamental Methods of Mathematical Economics, Fourth Edition. New York: McGraw-Hill.
2. Karlin, Samuel. 1992. Mathematical Methods and Theory in Games, Programming, & Economics. New York: Dover Pub. Inc.
3. Wu, Nesa dan Coppins, Richard. 1981. Linear Programming and Extnsions. New York: McGraw-Hill.
4. Rao, S.S. 1990. Optimization Theory and Applications, Second Edition. New Delhi: Wiley Eastern Limited.
5. Winston, Wayne L; Albright, S. Christian; dan Broadie, 
6. Mark. 2006. Practical Management Science, Third Edition. California: Duxbury Press - Thomson Learning.
7. Hillier, Frederick S. dan Lieberman, Gerald J. 2004, Introduction to Operartions Research, Eight Edition. New York: McGraw-Hill.
8. Zeleny, M. 1982. Multiple Criteria Decision Making. New York: McGraw-Hill.
9. Koo, Delia. 1977. Elements of Optimization with Applications in Economics and Business. New York: Springer-Verlag.

Dynamic Model:

1. Chiang, Alpha C. dan Wainwright, Kevin. 2005. Fundamental Methods of Mathematical Economics, Fourth Edition. New York: McGraw-Hill.
2. Hoy, Michael; Livernois, John; McKenna, Chris, dan Stengos, Thanasis. 2001. Mathematics for Economics, Second Edition. Cambridge, Massachusetts: The MIT Press.
3. Koo, Delia. 1977. Elements of Optimization with Applications in Economics and Business. New York: Springer-Verlag.
4. Chiang, Alpha C. 1992. Elements of Dynamic Optimization. New York: McGraw-Hill.
5. Kamien, Morton I dan Schwartz, Nancy Lou. 1991. Dynamic Optimization: The Calculus of Variations and Optimal Control in Economics and Management, 2nd Edition. New York: Elsevier.
6. Takayama, Akira. 1985. Mathematical Economics, Second Edition. Cambridge, UK: Cambridge University Press.
7. Takayama, Akira, 1994. Analytical Methods in Economics. Michigan: University of Michigan.
8. Christensen, B.J & Kiefer, N.M. 2009. Economic Modelling and Inference. Princeton University Press.

Game Theory:

1. Kreps, David M. 1990. A Course in Microeconomic Theory. Princeton: Princeton University Press.
2. Kreps, David M. 1992. Game Theory and Economic Modelling. Oxford, UK: Clarendon Press-Oxford University Press.
3. Osborne, Martin J. 2003. An Introduction to Game Theory. Oxford, UK: Oxford University Press.
4. Osborne, Martin J. dan Rubinstein, Ariel. 1994. A Course in Game Theory. Cambridge, Massachusetts: The MIT Press.
5. Shubik, Martin. 1982. Game Theory in the Social Sciences: Concepts and Solutions. Cambridge, Massachusetts: The MIT Press.
6. Von Neumann, John dan Morgenstern, Oskar. 1953. Theory of Games and Economic Behavior. Princeton: Princeton Univ. Press.
7. Karlin, Samuel. 1992. Mathematical Methods and Theory in Games, Programming, and Economics. New York: Dover Publlications. Inc.

Decision Making Theory:

1. Zeleny, M. 1982. Multiple Criteria Decision Making. New York: McGraw-Hill.
2. Mansur, Yusuf M. 1995. Fuzzy Sets and Economics: Applications of Fuzzy Mathematics to Non-Cooperative Oligopoly. Aldershot, Hants, UK, Edward Elgar Publishing Limited.
3. Saaty, Thomas Lorie. 1988. Multiriteria Decision Making: The Analytic Hierarchy Process for Planning, Priority Setting, Resource Allocation. Pittsburgh: RWS Publication.
4. Saaty, Thomas Lorie. 2001. The Analytic Network Process: Decision Making with dependence & Feedback. Pittsburgh: RWS Publication.

Model I-O (Input-Output):

1. Leontief, Wassily.1986. Input-Output Economics, Second Edition. Oxford, UK: Oxford University Press.
2. Miller, E. Ronald dan Blair, Peter D. 1985. Input-Output Analysis: Foundation and Extensions. New Jersey: Prentice Hall.
3. Miller, E. Ronald; Polenske, Karen; dan Roose, Adam Z (Ed). 1989. Frontiers of I-O Analysis. Oxford, UK: Oxford Univ. Press.
4. Carter, A.P. dan Bródy, A. (Ed). 1978. Input-Output Techniques: Applications of I-O Analysis. Amsterdam: North-Holland.
5. Bulmer-Thomas, V. 1982. Input-Output Analysis in Developing Countries: Sources, Methods, and Applications. New York: John Wiley & Sons.
6. Sohn, Ira (Ed). 1986. Readings in Input-Output Analysis: Theory and Applications. Oxford, UK: Oxford University Press.
7. Nazara, Suahasil. 1997. Analisis Input Output. Jakarta: Lembaga Penerbit FE-UI.
8. Perserikatan Bangsa-Bangsa (PBB). 1988. "Tabel Input-Output dan Analisis: Studi dalam Metode, Seri F, No.14, Rev.1", terjemahan Soeheba Kramadibrata dan Sri-Edi Swasono, United Nations, Input-Output Tables and Analysis: Studies in Methods, Series F, No.14, Rev.1. Jakarta: Penerbit Universitas Indonesia (UI Press).
9. Badan Pusat Statistik (BPS). 2000. Kerangka Teori dan Analisis Tabel Input-Output. Jakarta: BPS.
10. Isard, Walter dan Azis, Iwan J. (et.al). 1998. Methods of Inter-regional & Regional Analysis. Aldershot, Hants, England: Ashgate.
11. Sadoulet, Elisabeth dan de Janvry, Alain. 1995. Quantitative Development Policy Analysis. Baltimore: The John Hopkins University Press.

Model SAM (Social Accounting Matrix):

1. Perserikatan Bangsa-Bangsa (PBB). 1988. “Sistem Neraca Nasional”, diterjemahkan oleh Komet Mangiri. United Nations, A System of National Account. Jakarta: Penerbit Univ. Indonesia (UI-Press).
2. Pyatt, Graham dan Thorbecke, Erik. 1976. Planning Technique for a Better Future: A Summary of a Research Project on Planning for Growth, Redistribution, and Employment. Geneva: ILO (International Labor Office).
3. Badan Pusat Statistik (BPS).2003. Sistem Neraca Sosial Ekonomi Indonesia 2000. Jakarta: BPS.
4. Afiatno, Bambang Eko. 1989. Model SNSE Indonesia: Pola Distribusi dan Analisis Makro. Jakarta: Pusat Antar-Universitas-Studi Ekonomi-Universitas Indonesia (PAU-Ek-UI).
5. Pyatt, Graham dan Round, Jefferey I. (ed). 1985. Social Accounting Matrices: A Basis for Planning (A World Bank Symposium). Washington D.C: The World Bank.
6. Isard, Walter dan Azis, Iwan J. (et.al). 1998. Methods of Inter-regional & Regional Analysis. Aldershot, Hants, England: Ashgate.
7. Sadoulet, Elisabeth dan de Janvry, Alain. 1995. Quantitative Development Policy Analysis. Baltimore: The John Hopkins University Press.

 General Equlibrium:

1. Starr, Ross M. 1997. General Equilibrium Theory: An Introduction. New York: Cambridge University Press.
2. Dervis, Kemal; de Melo, Jaime; dan Robinson, Sherman. 1982. General Equilibrium Models for Development Policy (A World Bank Research Publication). Cambridge, UK: Cambridge University Press.
3. Dixon, Peter B; Parmenter, Brian R; Powel, Alan A; dan Wilcoxen, Peter J. 1992. Notes and Problems Applied General Equilibrium Economics. Amsterdam: Elsevier Science Publishers BV.
4. Mukherji, Anjan. 1990. Walrasian & Non-Walrasian Equilibria: An Introduction to General Equilibrium Analysis. Oxford, UK: Clarendon Press-Oxford University Press.
5. Isard, Walter dan Azis, Iwan J. (et.al). 1998. Methods of Inter-regional & Regional Analysis. Aldershot, Hants, England: Ashgate.
6. Sadoulet, Elisabeth dan de Janvry, Alain. 1995. Quantitative Development Policy Analysis. Baltimore: The John Hopkins University Press.

Planned learning activities and teaching methods

Lecture course, presentation and discussion, assignment

Language of instruction

In Bahasa (Indonesian Language) and English

Assessment methods and criteria

Middle Exam, Final Exam