1. Projects

Assessment Part III. Projects

General Parameters

Your answer will be a zipped up folder containing the following files
Your project files (.ox and .oxh)
One or more main files that test and demonstrate the features of your project.
A summary file which can be .pdf or .html that contains explanation, mathematical descriptions, graphs, etc.
The output from your test/demo runs. You can also use snippets of the output in your summary file to explain the project.
Your code should be documented and should follow a "style."
Here are my thoughts on that topic: The Style Council.
You are free to adopt your own style as long as the code is understandable and well-thought out.
These are base / suggested Projects
Completing the basic tasks in the project with good documentation and explanation is (roughly) a B+/A- answer.
To get an "A" grade your answer should do something more: add features, create a user interface, etc.
These are "Projects" not Take Home Exams
I am available to answer questions, explain errors and develop features.
My goal is to match effort: If asked, I will put in about 25% of the effort your put into your project. That means your results will be 80% or more your work and 20% or less my help.

Project Menu

This is a preliminary list and descriptions.
  1. Marshall
    2. Build on the Marshall assignment to use SolveNLE() to do microeconomics
    Embed the solution for demand in a function that allows the user to take derivatives of demand with respect to prices and income.
    Use those derivatives to compute elasticities. Confirm numerically that the CES utility has constant elasticity of demand
    Extend/Specialize
    Handle kinked budget constraints due to, e.g., progressive income taxes.
    Model labour supply and effect of welfare (separate explanation can be given).
  2. Edgeworth (see notes for basic idea)
    3. Develop a tool for creating and analysing exchange economies
    For the 2 good 2 agent case draw the Edgeworth Box, the "core" of the economy, the contract curve, and Competitive equilibrium (all using system solving).
    Extend to n-good, n-agent versions (that can't be drawn)
    Compute competitive equilibrium and the effect of taxation.
  3. McCall (see notes)
    4. Write code to iterate on the job search model
    Simulate data from the model
    Extend the model in ways we can discuss
  4. Bellman
    5. Code a basic Dynamic Program(s)
    (the search model is a DP, and "program" here does not refer to computer code).
    This could be one of the basic problems such as "cake eating" or a growth model
  5. Code Selection and/or Multinomial Probit Estimation
    6. (I can provide copious notes but they are not "typed up")
    Write a package that mimics Stata's heckman command.
    Code the likelihood function for the basic (normal errors) selection model.
    Code the 2SLS approximation
    Test on the data used in Stata's example.
    AND/OR...
    Code the multinomial probit model as in Stata's mprobit
    This relies on Gaussian Quadrature
    Test on the data used in Stata's example
  6. Nash
    7. Compute Basic Game Theory Outcomes, such as
    In discrete one-shot games find dominant strategies, Nash Equilibrium in pure and mixed strategies
    Design code to set up a sequential game and solve for subgame perfect equibrium
    Simulate results for repeated play of the Prisoner's Dilemma (see book by Axelrod).
  7. Design Your Own
    8. Propose a project to me ... it might involve:
    Translating code from some other language to Ox that uses Ox's strengths
    Analyzing the numerical behaviour of some of the basic algorithms we've covered