Applied Macroeconomic Modeling (Part II)

This module integrates economic theory, country-level data, hands-on computer work, and real-world applications to the Rwandan economy. Students will be introduced to the micro, macro and trade theories that underlie typical CGE models and will also become familiar with SAMs, the statistical backbone of CGE models. As part of the module, students will learn how the parameters of a CGE model are estimated from a SAM. Finally, through this module, students will be exposed to relevant policy issues and areas that benefit from the use of these models. Examples of modeling applications include analysis of trade and public finance in Rwanda under alternative macro closures (I-S, public budget, balance-of-payments)and factor market closures, productivity and world price shocks, capital in-and outflows, etc. on Rwanda’s economic structure and income distribution