AGEC618

SMART handout for AGEC618 by Zhan Wang

Introduction

Welcome to the SMART handout for AGEC618 "Applied General Equilibrium Analysis"!

The SMART handout is developed based on course materials of AGEC618 by Prof. Thomas W. Hertel at Purdue University and Dr. Zhan Wang's class notes as a PhD student. It covers materials from the first six lectures of this course, which aims to teach students the basis of applied general equilibrium analysis, taking the one-region Global Trade Analysis Project (GTAP) model as the example.

This handout follows the philosophy of SMART and aims to facilitate understanding of complex contents and materials with frequent and immediate connections between concepts. For any questions and suggestions, please contact zhanwang@purdue.edu.

Last updated: 2024/6/12

Table of contents

One-region GTAP model

Preface: From analytical solution to linearized system
Lecture 1: Get started
Lecture 2: Overview of closed model
Lecture 3: Producer behavior
Lecture 4: Household Behavior
Lecture 5: Aggregation across agents and market responses
Lecture 6: Welfare analysis in a second-best setting
Supplementary economic and math concepts

Search the handout

Note: In order to use the search function, you need to run the webpage at a local server (see instructions below).

For Windows users:

1. Install Node.js on the computer.
2. In command line, run "npm install http-server" (you only need to do this once).
3. Navigate to the folder of SMART Handout (or open command line in that folder), run "npx http-server"
4. Open the local server provided in command line in your browser and open "AGEC618.html" there, then the searching function will work.

For Mac users:

1. In terminal, navigate to the folder of SMART handout and run "python -m SimpleHTTPServer 8000"
2. If you already installed Python 3, you may also try "python -m http.server" or "python3 -m http.server"
3. Open "AGEC618.html" there, then the searching function will work.

Reference

• Course materials of AGEC618 by Prof. Thomas W. Hertel
• Course notes by Dr. Zhan Wang
• Mas-Colell, Andreu, Michael Dennis Whinston, and Jerry R. Green. Microeconomic theory. Vol. 1. New York: Oxford university press, 1995 (MWG).
• Other sources: listed on corresponding notes.

© 2024 Zhan Wang and Thomas W. Hertel