Aims

This course aims to make graduate students familiar with applied methods for policy analysis in both partial and general equilibrium settings. Students are expected to be progressively able to design econometric and mathematical models to analyse economic policies under various hypothesis and scopes as well as recognise their limitations. This course should help these students bridge their microeconomic theory to policy analysis and, hence, prepare them better to assist policy decision makers.

Main themes

Economic models for policy analysis:
Demand and supply models
Household models
Market and multi-market models
Trade models
Computable general equilibrium models
Most illustrations are drawn from recent agricultural and trade policy reforms.

Other information (prerequisite, evaluation (assessment methods), course materials recommended readings, ...)

Precursory courses:
Microeconomics, Macroeconomics, Econometrics
Microsoft Excel

Supplemental courses:
Agricultural and rural policy, Rural development economics, Agricultural market analysis, Rural economics seminars

Evaluation:
Written exam

Support:
Syllabus, overheads and Textbooks:
François J. F. and Reinert K. A (eds.). Applied Methods for Trade Policy Analysis: a Handbook. Cambridge University Press, 1997.
Just R. E., Hueth D. L. and Schmitz A. The Welfare Economics of Public Policy: A Practical Approach to Project and Policy Evaluation. Edward Elgar Publishing Limited. Cheltenham, UK, 2004.
Sadoulet E. and de Janvry A. Quantitative Development Analysis, Johns Hopkins University Press, Baltimore, 1995.

Miscellaneous

1. Public interventions and their evaluation
2. Demand analysis
3. The profit function approach to supply and factor demand
4. Supply response : expectations formation and partial adjustment
5. Household models
6. Market distortions: indicators and partial equilibrium analysis
7. Multi-market modelling approach
8. Social accounting matrix and multipliers
9. General equilibrium modelling approach

Other credits in programs