Class meeting
Dates: August 09 – December 06, 2022
Time: Tuesday, 14h00 to 17h50
Time zone: GMT-3:00 (Brasília)
Instructor: Eduardo A. Haddad
Prof. Haddad is Full Professor at the Department of Economics at the University of Sao Paulo, Brazil, where he directs the Regional and Urban Economics Lab (NEREUS). He also holds a position as Affiliate Research Professor at the Regional Economics Applications Laboratory – REAL – at the University of Illinois at Urbana-Champaign, USA. He is a Senior Fellow at the Policy Center for the New South, Rabat, Morocco.
Prof. Haddad has published widely in professional journals on regional and interregional input-output analysis, computable general equilibrium modeling, and various aspects of regional economic development in developing countries; he has also contributed with chapters in international books in the fields of regional science and economic development. His research focuses on large-scale modeling of multi-regional economic systems, with special interest in modeling integration applied to transportation, climate change and spatial interaction.
Prof. Haddad received his B.A. in Economics from the Federal University of Minas Gerais, Brazil, in 1993, and his Ph.D. in Economics from the University of Illinois at Urban-Champaign in 1997. In January-December 1998 he held a post-doctoral position at the University of Oxford. He has served as the president of the Brazilian Regional Science Association (2008-2010), and as the first president of the Regional Science Association of the Americas (2008-2010). He is now the Elect-President of the Regional Science Association International (RSAI). He was the Director of Research of the Institute of Economic Research Foundation – FIPE – from 2005 to 2013. He has spent the period January 2014 to June 2015 on sabbatical as a visitor at the Department of Economics (International Economics Section) at Princeton University, and at the Edward J. Bloustein School of Public Policy and Planning at Rutgers University. In 2017-2018, he was the Chairman of the Department of Economics at USP.
Teaching assistant: Inácio F. Araújo
Dr. Araújo is a Post-Doc researcher at the Department of Economics and the Regional and Urban Economics Lab (NEREUS) at the University of Sao Paulo, Brazil. His major research interests lie in the field of regional analysis. He has experience in the implementation and application of economic models, especially input-output and computable general equilibrium models.
Teaching assistant: Ademir A. M. Rocha
Ademir Rocha is a Ph.D. Candidate at the Department of Economics and researcher at the Regional and Urban Economics Lab (NEREUS) and Interdisciplinary Climate Investigation Center (INCLINE) at the University of São Paulo, Brazil. He has experience in the field of economic modeling and has published articles on the following topics: regional and urban economics, locational decision of economic agents, land use modeling and economics of climate change.
Learning objectives
The course goals are:
Readings
Textbooks:
Dervis, K., De Melo, J. and Robinson, S. (1982). General Equilibrium Models for Development Policy. Cambridge University Press.
Dixon, P. D., Jerie, M. and Rimmer, M. T. (2018). Trade Theory in Computsble General Equilibrium Models: Armington, Krugman and Melitz. Springer.
Dixon, P. B. and Jorgenson, D. W. (2013). Handbook of Computable General Equilibrium Modeling. Volumes 1A and 1B. North-Holland, Amsterdam.
Dixon, P. B., Parmenter, B. R., Sutton, J. and Vincent, D. P. (1982). ORANI: A Multisectoral Model of the Australian Economy. North-Holland, Amsterdam.
Dixon, P. B., Parmenter, B. R., Powell, A. A. and Wilcoxen, P. J. (1992). Notes and Problems in Applied General Equilibrium Economics. Advanced Textbooks in Economics 32, Eds. C. J. Bliss and M. D. Intriligator, North-Holland, Amsterdam.
Dixon, P. D. and Rimmer, M. T. (2002). Dynamic General Equilibrium Modelling for Forecasting and Policy: A Practical Guide and Documentation of MONASH. Amsterdam, North-Holland.
Ginsburgh V. and Keyzer M. (1997). The Structure of Applied General Equilibrium Models. The MIT Press, Cambridge.
Haddad, E. A. (1999). Regional Inequality and Structural Changes: Lessons from the Brazilian Economy. Ashgate, Aldershot.
Hertel, T. W. (1997). Global Trade Analysis: Modeling and Applications, Cambridge University Press.
Isard, W. et al. (1998). Methods of Interregional and Regional Analysis. Ashgate, Aldershot.
Miller, R.E. and Blair, P.D. (2009). Input-Output Analysis: Foundations and Extensions. Englewood Cliffs: Prentice-Hall.
Shoven, J. B. and Whalley, J. (1992). Applying General Equilibrium. Cambridge Surveys of Economic Literature. Cambridge University Press, Cambridge.
Complementary readings:
To be indicated by the instructor. A list of complementary readings will be available at the website of the course.
Link for class material distant access
Moodle: https://edisciplinas.usp.br/acessar/
NEREUS: http://www.usp.br/nereus/
Toolboxes of Input-Output Analysis
Análise de Insumo-Produto: Teoria e Aplicações no R (NEDUR-UFPR) – Link
ioanalysis: Input-Output Analysis in R (REAL-UIUC) – Link
PyIO: Python Module for Input-Output Analysis (REAL-UIUC) – Link
REAL I-O: Input-Output Operation Software (REAL-UIUC) – Link
Examination and grading
The final mark composition:
Homework and attendance
Some of the techniques used will be included in homework assignments, which should be delivered on previously established dates. While student cooperation is encouraged to resolve exercises, each student will have to submit his/her own answers. There will be quizzes throughout the course that will be part of the grading.
Late assignments
Regular attendance is expected as well as delivery of homework (quizzes, group exercises, presentations and simulation exercises). In addition, there will be an individual project at the end of each part of the course. The Final Exam will consist of a paper based on an application of an inter-regional input-output model (Part I), and an inter-regional CGE model (Part II).
Complementary activities
We may schedule eventual tutorial meetings outside regular course hours to discuss and carry-on hands-on applications of the concepts and techniques discussed in the sessions. Such activities may be complemented by the introduction of extensions of the basic models.
Course project
In previous editions of the course, we have developed with students applied models for different countries and regions: Greece (2017), Chile (2018), Colombia (2019), Brazilian Urban Areas and Paraguay (2020), and “Serra da Mantiqueira” (2021). The development of such models has relied on collaboration with scholars and institutions from those countries (e.g. Prof. Yannis Psycharis at Panteion University, the team led by Patricio Aroca at UAI, and Dr. Jaime Bonet and his research team at Banco de la República). In essence, they have helped us with the country’s data and we have developed the models. At the end of the course, students engaged in collaborative research projects using one of the models developed during the semester. Many of the projects the students worked on then became the basis for publications.
Course detailed outline
Part I: EAE6061 – Applied General Equilibrium Models I
Class #1 (August 09, 2022)
Topic: “General Equilibrium: Pure Theory, Applied Theory, and Practice”
Key learning outcome:
Manual chapters and readings:
Review (linear algebra) – Miller and Blair (2009), appendix
Class #2 (August 09, 2022)
Topic: “Economic Base Models I”
Key learning outcome:
Manual chapters and readings:
Article: “O PIB e a Renda” (Paulo R. Haddad) – O Tempo, 17/10/2019
Class #3 (August 16, 2022)
Topic: “Economic Base Models II”
Key learning outcome:
Manual chapters and readings:
Activity 2: Questions Angola Brazil
Solution: Brazil
Class #4 (August 16, 2022)
Topic: “Theoretical Structure of Input-Output Models”
Key learning outcome:
Manual chapters and readings:
Example IO: Excel (ver https://guilhotojjmgen.wordpress.com/)
Activity 3: Data Brazil_1a Data_Angola
Class #5 (August 30, 2022)
Topic: “Impact Analysis and Multipliers”
Key learning outcome:
Manual chapters and readings:
Activity 4: Data_Brazil_2a Data_Angola
Solution: Activity 5: Challenge (Man-year equivalent)
Class #6 (August 30, 2022)
Topic: “Regional and Inter-regional Input-Output Models”
Key learning outcome:
Manual chapters and readings:
Solution: Activity 6 (Key sectors)
Class #7 (September 13, 2022)
Topic: “Applications of Input-Output Models I”
Key learning outcome:
Manual chapters and readings:
Solution: Activity 7 (Decomposition of regional output)
Class #8 (September 13, 2022)
Topic: “Applications of Input-Output Models II”
Key learning outcome:
Manual chapters and readings:
Example (SAMIR – Marrocos): Excel file
Activity 8: Data_Brasil Data_Angola
Solution: Activity 8
Class #9 (September 20, 2022)
Topic: “Applications of Input-Output Models III”
Key learning outcome:
Manual chapters and readings:
Example (SDA): Excel file
Activity 9 (SDA – Employment): Data
Solution: Activity 9
Class #10 (September 20, 2022)
Topic: “Global Input-Output Models” (Prof. Inácio Araújo)
Key learning outcome:
Manual chapters and readings:
Class #11 (September 27, 2022)
Topic: “Methods of Regionalization / Miyazawa”
Key learning outcome:
Manual chapters and readings:
Example (IIOAS Method): Excel file
Class #12 (Date to be defined)
Topic: “Applications of Input-Output Models with R” (Prof. Vinicius Vale)
Key learning outcome:
Manual chapters and readings:
Database and RScript: see here
Class #13 (October 04, 2022)
Topic: “Social Accounting Matrix”
Key learning outcome:
Manual chapters and readings:
Example (SAM for Brazil): Data
Exercise: SAM of a Closed Economy
Class #14 (October 04, 2022)
Topic: “The Johansen Approach”
Key learning outcome:
Manual chapters and readings:
Class #15 (October 11, 2022)
Topic: “Introduction to GEMPACK” (Prof. Inácio Araújo)
Key learning outcome:
Manual chapters and readings:
Class #16 (October 11, 2022)
Topic: “Course Projects”
Key learning outcome:
Manual chapters and readings:
Part II: EAE6061 – Applied General Equilibrium Models II
Topic: “The ORANI Model I”
Key learning outcome:
Manual chapters and readings:
ORANI-G (Brazil): Files
Example (ORANI for Brazil): Data
Activity 1: Data
Class #2 (October 18, 2022)
Topic: “The ORANI Model II”
Key learning outcome:
Manual chapters and readings:
Activity 2: Questions
Class #3 (October 25, 2022)
Topic: “The ORANI Model III”
Key learning outcome:
Manual chapters and readings:
Activity 3: Questions
Class #4 (October 25, 2022)
Topic: “The ORANI Model IV”
Key learning outcome:
Manual chapters and readings:
Exercises: (i) Homogeneity test (ii) Reduction in real wages
Class #5 (November 01, 2022)
Topic: “The Miniature MONASH Model I”
Key learning outcome:
Manual chapters and readings:
Class #6 (November 01, 2022)
Topic: “The Miniature MONASH Model II”
Key learning outcome:
Manual chapters and readings:
Exercise (database): Questions
MM Model: Files
Wage Cut Simulation: Guide
Activity 4: Questions
Class #7 (November 08, 2022)
Topic: “The EFES Model”
Key learning outcome:
Manual chapters and readings:
Class #8 (November 08, 2022)
Topic: “Spatial CGE Models I”
Key learning outcome:
Manual chapters and readings:
Class #9 (November 22, 2022)
Topic: “Spatial CGE Models II”
Key learning outcome:
Manual chapters and readings:
Class #10 (November 22, 2022)*
Topic: “The B-MARIA Model I”
Key learning outcome:
Manual chapters and readings:
Class #11 (November 29, 2022)
Topic: “The B-MARIA Model II”
Key learning outcome:
Manual chapters and readings:
Examples BMMX
BMMX ICGE Model: files
Class #12 (November 29, 2022)
Topic: “The B-MARIA Model III”
Key learning outcome:
Manual chapters and readings:
Data for calibration exercise: Files
Class #13 (December 06, 2022)
Topic: “The B-MARIA Model IV”
Key learning outcome:
Manual chapters and readings:
Class #14 (December 06, 2022)
Topic: “Course Projects”
Key learning outcome:
Class #15 (December 06, 2022)
Topic: “The GTAP Model I” (TBC)
Key learning outcome:
Manual chapters and readings:
Class #16 (December 06, 2022)
Topic: “The GTAP Model II” (TBC)
Key learning outcome:
Manual chapters and readings:
BMAPSP ICGE Model: files
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