Test on the Economics Cobweb Model by Using Eviews Programming

Cobweb Model is a very important dynamic model in western Microeconomics. It has many applications on both economics theory and real life practices, but there are few concrete tests on this model. So it is very hard for students to understand this model because of its very abstract. To solve this problem, we tried to use the most popular Econometrics software Eviews to simulate and test the Cobweb Model. This paper is based on our tries and errors and is divided into four parts. We first introduce what the Cobweb Model is, and then explain the Eviews programming functions. In the third part we display our Eviews source codes and the run results. Last but not least, we draw our conclusion and point out our research drawbacks and the direction of further study of this topic.