The work demonstrates an ability to convey economic and/or technical terms in intuitive language, and show a real understanding of the topic;
economics
Description
ASSESSMENT CRITERIA
Your assignment
will be assessed on the basis of the following criteria:
- The report is
structured appropriately to address the question;
- The work
demonstrates an ability to convey economic and/or technical terms in
intuitive language, and show a real understanding of the topic;
- The work
demonstrates understanding and correct application of the modelling
techniques discussed in class;
- Marks will be
awarded for the correct calculation of results and an intuitive
explanation of the method used;
- Students
should also ensure that any diagrams and figures used in the analysis are
clear, and support the points made in your report.
- A new trade deal
is expected to have the following impacts on the Scottish economy:
Table 1. Impact of a new hypothetical trade deal
|
Export to the
rest of the World |
+ 10% |
|
Export to the
rest of the UK |
+5% |
|
Labour
productivity |
+1% |
You are asked to use this information to model
the impact of the new trade agreement using both the IO and the CGE models.
Each student should undertake four activities:
- Using the
information provided in Table 1, asses the system-wide impacts of both
export shocks using IO analysis and CGE modelling.
- Discuss the
differences in the results obtained using these two techniques.
- Assess the
impact of the improved labour productivity identified in Table 1. For
this task you need to identify the appropriate modelling technique and
motivate your decision.
- Discuss the
importance of assumptions underlying each modelling approach, for the
results of the analysis. Which parameter(s) is/are more likely to
influence the results?
