Economic modeling is a crucial tool in economics that simplifies and analyzes complex economic systems, processes, and relationships. It involves creating mathematical or computational representations of the economy to better understand its behavior, make predictions, and inform decision-making.
Key components of economic modeling include mathematical equations, computational simulations, and graphical representations. It serves several objectives, including understanding complex systems, forecasting future economic trends, policy analysis, scenario analysis, resource allocation, education and communication, hypothesis testing, and risk assessment. These models help economists and researchers understand the intricate relationships within the economy, predict future trends, assess the impact of policy options, and optimize resource allocation. They also aid in hypothesis testing and risk assessment, making economic theories more accessible and valid. Overall, economic modeling is a vital tool in economics for understanding, analyzing, and making informed decisions about economic systems and phenomena.
The main objective of this course and its lectures is to provide students with a profound understanding of the subject matter from their first year as economics students. It aims to help them realize that economics is primarily a social science characterized by a social construction of its phenomena, with a primary focus on macroeconomic phenomena and macroeconometric modeling.
The course structure
Lecture 1: Introduction to Economics, with a focus on examining economic definitions. During the tutorial session (TD), we will address the question: 'Is economics a science?' based on the main criteria provided by Popper, Kuhn, and LakatosLecture 2: "Fundamentals of Economic Modeling, along with a supplementary lecture on the concept of equilibrium as 'the hard core of economics.' During the tutorial session (TD), we will explore the question: 'Is economics a positive, normative science, or both?'"
Lecture 3: How to Construct an Economic Model, and the Building of a Simplified Closed-Economy Model for the Tutorial Session.
Lecture 4:The Importance and Objectives of Economic Modeling, and for the tutorial session: a review of the primary distinctions between mainstream orthodox ideas (New Classical and New Keynesians) and heterodox ideas (mainly Post-Keynesians and Marxians) at the macroeconomic level. Additionally, we will provide a brief overview of the differences between the orthodox view and behavioral economics perspective at the microeconomic level, with a particular focus on the 'homo economicus' assumption.
Lecture 5:
- Enseignant: hadjer soumia aouad