Course unit title

Economic Modelling

Course unit code

EKT807

Type of course unit (compulsory, optional)

Compulsory

Level of course units (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 closes 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. and 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 and Coppins, Richard. 1981. Linear Programming and Extensions. New York: McGraw-Hill.
  4. Rao, SS 1990. Optimization Theory and Applications, Second Edition. New Delhi: Wiley Eastern Limited.
  5. Winston, Wayne L; Albright, S. Christian; and Broadie,  
  6. Mark. 2006. Practical Management Science, Third Edition. California: Duxbury Press - Thomson Learning.
  7. Hillier, Frederick S. and Lieberman, Gerald J. 2004, Introduction to Operations 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. and Wainwright, Kevin. 2005. Fundamental Methods of Mathematical Economics, Fourth Edition. New York: McGraw-Hill.
  2. Hoy, Michael; Livernois, John; McKenna, Chris, and 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 and 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, BJ & Kiefer, NM 2009. Economic Modeling 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. and 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 and 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 Publications. 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. Multicriteria Decision Making: The Analytic Hierarchy Process for Planning, Priority Setting, Resource Allocation. Pittsburgh: RWS Publications.
  4. Saaty, Thomas Lorie. 2001. The Analytic Network Process: Decision Making with dependence & Feedback. Pittsburgh: RWS Publications.

IO (Input-Output) Model:

  1. Leontief, Wassily. 1986. Input-Output Economics, Second Edition. Oxford, UK: Oxford University Press.
  2. Miller, E. Ronald and Blair, Peter D. 1985. Input-Output Analysis: Foundations and Extensions. New Jersey: Prentice Hall.
  3. Miller, E. Ronald; Polenske, Karen; and Roose, Adam Z (Ed). 1989. Frontiers of IO Analysis. Oxford, UK: Oxford Univ. Press.
  4. Carter, A.P. and Bródy, A. (Ed). 1978. Input-Output Techniques: Applications of IO 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. Input Output Analysis. Jakarta: FE-UI Publishing Institute.
  8. United Nations (UN). 1988. "Input-Output Tables and Analysis: Studies in Methods, Series F, No.14, Rev.1", translation by Soeheba Kramadibrata and Sri-Edi Swasono, United Nations, Input-Output Tables and Analysis: Studies in Methods, Series F, No. 14, Rev. 1. Jakarta: University of Indonesia Publishers (UI Press).
  9. Central Statistics Agency (BPS). 2000. Theoretical Framework and Analysis of Input-Output Tables. Jakarta: BPS.
  10. Isard, Walter and Azis, Iwan J. (et.al). 1998. Methods of Inter-regional & Regional Analysis. Aldershot, Hants, England: Ashgate.
  11. Sadoulet, Elisabeth and de Janvry, Alain. 1995. Quantitative Development Policy Analysis. Baltimore: The John Hopkins University Press.

SAM (Social Accounting Matrix) Model:

  1. United Nations (UN). 1988. "National Accounts System", translated by Komet Mangiri. United Nations, A System of National Accounts. Jakarta: Univ. Publisher. Indonesia (UI-Press).
  2. Pyatt, Graham and 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. Central Statistics Agency (BPS). 2003. Indonesian Socio-Economic Accounts System 2000. Jakarta: BPS.
  4. Afiatno, Bambang Eko. 1989. Indonesian SNSE Model: Distribution Patterns and Macro Analysis. Jakarta: Inter-University Center for Economic Studies-Indonesian University (PAU-Ek-UI).
  5. Pyatt, Graham and Round, Jefferey I. (ed). 1985. Social Accounting Matrices: A Basis for Planning (A World Bank Symposium). Washington DC: The World Bank.
  6. Isard, Walter and Azis, Iwan J. (et.al). 1998. Methods of Inter-regional & Regional Analysis. Aldershot, Hants, England: Ashgate.
  7. Sadoulet, Elisabeth and de Janvry, Alain. 1995. Quantitative Development Policy Analysis. Baltimore: The John Hopkins University Press.

 General Equilibrium:

  1. Starr, Ross M. 1997. General Equilibrium Theory: An Introduction. New York: Cambridge University Press.
  2. Dervis, Kemal; de Melo, Jaime; and 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; Powell, Alan A; and 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 and Azis, Iwan J. (et.al). 1998. Methods of Inter-regional & Regional Analysis. Aldershot, Hants, England: Ashgate.
  6. Sadoulet, Elisabeth and de Janvry, Alain. 1995. Quantitative Development Policy Analysis. Baltimore: The John Hopkins University Press.

Planned learning activities and teaching methods

Lecture courses, presentations and discussions, assignments

Language of instruction

In Bahasa (Indonesian Language) and English

Assessment methods and criteria

Middle Exam, Final Exam