A three-day workshop for students from the MSc Programme in Economics, who are currently writing their Master's Thesis
Lecturer: Daniel Smilovski
Research Methods and Academic Writing 2022 / 2023
Lecturers: Daniel Smilovski, Etienne Ndemezo
PART I: Methodological Foundations
- Learning the maths of dynamic systems which is needed to do any macro at all
- Recapitulate basic macro from Bachelor programs
- Review the development of macroeconomic ideas since Keynes’ ‘General Theory’
The module provides an introduction to the role and significance of human capital for the individuals and for the economy. It applies the tools of economic analysis to educational policy and problem solving. This module combines economic theory, econometric literature and institutional literature to examine current issues education. The main part of the course will include theories for individual educational choice, educational production, and the role of the design of the educational system. How should the educational system be designed to secure an adequate supply of highly competent labor? It discusses how globalization and technological progress affect the demand for human capital.
Cost–Benefit Analysis provides accessible, comprehensive, authoritative, and practical treatments of the protocols for assessing the relative efficiency of public policies. The aim of the course is to expose students to the theory and practice of Cost Benefit Analysis in the public sector. Where it is possible, evidence will be drawn from local and regional development projects.
Teachers:
Prof. Thiele Rainer;
Dr. Jules Ngango
Welcome Message,
Msc Student in Economics!
Academic year 2021
Hello everyone,
This is a team of Prof. Boysen-Hogrefe Jens (PhD) and Aimable Nsabimana (PhD) who welcome you in this Module. This is Advanced Econometrics, a Module of 15 credits designed to be offered to Master students in Economics at the University of Rwanda. This Module is mainly focusing on cross section and panel data methods and it recognizes that students have already covered the basic linear model in their undergraduate studies. The Methods of advanced cross sections and panel data methods are becoming increasingly popular, especially in examining the causal impact associations. This is a an advanced course that requires students to read regularly class materials and guided book chapters so that they can effectively understand the module. The module is approximated to last two months periods within which the students will cover eight chapters as will be detailed in subsequent sections.
The module focuses on the role played by the assumptions with economic content while downplaying or ignoring regularity conditions.
Module Aim
The module aims to equip students with very firm understanding of why certain methods work while other not. It will also give students the background for developing new methods.
Module Features
I. Asymptotics
II. Ordinary least squares (OLS) and Inference under heteroscedasticity
III. Generalized least squares (GLS), Feasible generalized least squares (FGLS) and Seemingly unrelated regressions (SUR)
IV. Maximum Likelihood (ML) and inference
V. Generalized method of moments (GMM)
VI. Endogeneity and instrumental variables (IV)
VII. Two Stage Least Squares and Three Stage Least Squares (SEM)
VIII. Binary Choice models (Logit/Probit)
Module Overall Learning Outcomes
At the end of this module, students will be able to:
(i) Get familiar with the use of analogy approach complemented by asymptotic analysis in estimating OLS Models
(ii) Understand and be able to apply various assumptions of the underlying population models.
(iii) Get familiar with the assumptions, couched in terms of correlations, conditional expectations, conditional variances and covariances and conditional distributions
(iv) Understand source and implications of endogeneity problem in deriving causal impact and how to deal with it
(v) Estimating binary response models (LPM, Logit and Probit)
Module Facilitators
Module Leader: Prof. Boysen-Hogrefe, Jens (PhD)
Module Partner: Dr. Aimable Nsabimana (PhD)
Tel: +250788766939
Email: a.nsabimana17@ur.ac.rw
General Module Resources
(i) Greene, W. (2018). Econometrics Analysis, Pearson.
(ii) Wooldridge, Jeffrey M. (2010). Econometric Analysis of Cross Section and Panel Data, MIT Press.
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
In part I of the course we are concerned with advanced topics in macroeconomics. The focus is on the formulation of the work horse model in modern macroeconomics today, namely the New Keynesian model (NKM). As the latter belongs to the class of dynamic stochastic general equilibrium (DSGE) models, we discuss the NKM's microfoundations and the corresponding linearization and solution techniques being applied, conduct a stability analysis and perform numerical simulations. We are also going to study (un)restricted monetary and fiscal policy interventions.
In part II of the course we are concerned with the comparative-static and dynamic analysis of shocks in models of the traditional Keynesian, the Dornbusch, the Real Business and the New Keynesian type, respectively. The focus is also on the discussion of the model structures, solution methods, stability analysis and numerical simulations. Critical remarks on the accuracy of model-based predictions with respect to fixed, flexible and sticky price behavior under static and rational expectations will be made.
The course builds on knowledge presented in Intermediate Macroeconomics Theory and has the objective to provide the student with theories and methods for analysing macroeconomic growth, including endogenous economic growth - especially related to human capital and R & D.
The course presents neoclassical models of economic growth and more recent models of endogenous economic growth, including empirical applications of the models.
The course also aims to make students familiar with the nexus between economic growth, inequality and poverty. It presents concepts such as the Kuznets curve and different measures of pro-poor growth.
Successful completion of this module will enhance the student's ability to:
- Discuss complex macroeconomic policy issues and relate arguments to well understood theoretical principles.
- Distinguish between alternative ways of analysing economic growth and development.
- Assess the aggregation problems associated with the interface between micro assumptions and macro formulations.
- Assess how well theoretical models depict macroeconomic processes.
Indicative Resources
Core course books
- Acemoglu, D. (2009), Introduction to modern economic growth, Princeton NJ: Princeton University Press.
- Romer, D. (2012), Advanced Macroeconomics, 4thEd.,New York NY: McGraw-Hill.
Background Texts (include number in library or URL) (incl ISBN)
- Barro, Robert,and Xavier Sala-I-Martin (2004), Economic Growth, 2ndEd., Cambridge MA, MIT Press.
- Ravallion, M., S. Chen (2003), Measuring Pro-Poor Growth, Economics Letters 78: 93–99
Additional references
- GALE, D. (1973) “Pure Exchange Equilibrium of Dynamic Economic Models,” Journal of Economic Theory, 6, 12-36.
- GEANAKOPLOS, J.D. (1987) “Overlapping Generations” in the The New Palgrave Dictionary of Economics—General Equilibrium. Edited by J. Eatwell, M. Milgate, and P. Newman. London, Macmillan.
- KIYOTAKI, N., AND J. MOORE (1997) “Credit Cycles,” Journal of Political Economy, 105, 211-248.
- SHELL, K. (1971) “Notes on the Economics of Infinity,”Journal of Political Economy, 79, 10
Teaching team:
Teaching team: Prof Rainer Thiele, Dr. Kabanda Richard, Ms Umulisa Yvonne
The aim of the course: Firms and consumers make choices for themselves and interact in various ways in the market place. This course prepares the theoretical groundwork for Microeconomic policy courses elsewhere in the Master of Economics curriculum, highlighting traditional economic approaches, their normative foundations, and recent advances such as information economics and behavioral economics.
By the end of the course the student will
- be familiar with the main, unifying microeconomics principles, and know how to analyze microeconomic problems using mathematical tools
- know the main concepts of consumer choice and firm behavior, and their relevance for equilibrium and welfare analysis
- be able to evaluate economic policy with regard to efficiency and equity and know of the limitations to economic policy
- know of core arguments from the economics of information and incentives
- be able to understand limitations of the homo economicus and current advances in behavioral economics
- know of problems of market failure and how to address them
- know of possibilities and limitations in applied policy fields, such as welfare analysis, and regulation of industry
The module equips students with the most important concepts in Public Finance and makes them familiar with different tools for the analysis of public interventions. It includes the effects of government taxing and spending on the economy, including economic efficiency and the distribution of income and wealth. Core topics will be market failure and taxation as well as the political economy and public choice. It includes as well a framework, which enables students to better understand and investigate real world questions regarding public interventions, taxation and redistribution independently.