Department of Agricultural Economics

Michigan State University

AEC 845  Market Analysis

Spring Semester 2006

COURSE DESCRIPTION

Instructor: Kellie Raper

211C Agriculture Hall

Ph: 353-7226

Email: raperk@msu.edu



Description and Purpose: The purpose of this course is to introduce students to the analytical procedures and empirical techniques used in the analysis of prices and market response. Prices often move rapidly in ways that, on the surface, seem hard to understand and even harder to predict. Yet understanding and predicting price movements is just what is required for outlook specialists, policy analysts, business managers, and brokerage houses to be successful.

The course is focused heavily on application of quantitative empirical techniques. A basic understanding of introductory statistics and econometrics will be assumed (AEC 835 -- Introductory Econometrics is a prerequisite). Students will be required to gain experience in applying various techniques to actual and simulated data as the course progresses. Practice in using econometric software packages will be required. A necessary prerequisite for effective empirical research is a good understanding of the theory and models used to explain how different factors influence price movements. Hence, attention is also give to price determination theory and modeling.

At the end of the course students should be able to:

(i) Frame and analyze the implications of alternative sets of assumptions to explain price determination and the performance of markets.

(ii) Estimate models and test hypotheses regarding quantitative behavioral relationships, such as supply and demand functions.

(iii) Use empirical market models to forecast, manage risks, and investigate the effects of government policies.