Master 2020/2021

Mathematics for Economists

Type: Compulsory course (Economics: Research Programme)

Area of studies: Economics

Delivered by: Department of Theoretical Economics

Where: Faculty of Economic Sciences

When: 1 year, 1 module

Mode of studies: offline

Instructors: Kirill Bukin, Mark I. Levin

Master’s programme: Academic Economics

Language: English

ECTS credits: 3

Contact hours: 42

Course Syllabus

Abstract

The objective of the course is to equip the students with some of the theoretical foundations of the modern mathematics and what is more important with the analytical methods of solving problems posed by the micro and macro analysis.

Learning Objectives

• The course has been designed to convey to the students how mathematics can be used in the modern micro and macro economic analysis.
• Emphasis is placed on the model-building techniques, methods of solution and economic interpretations.
• Topics studied comprise the following: methods of optimization, dynamic programming, optimal control theory.

Expected Learning Outcomes

• Have the ability to solve optimization problems in the case of numerous inequality constraints,
• Have acquired the knowledge of the methods of the optimal control theory its applicability for solving problems in economics
• Have acquired the knowledge of the methods of the dynamic programming and its applicability for solving problems in economics

Course Contents

• Basics of optimization, elements of convex analysis and Kuhn-Tucker method
• Dynamic Optimization in Continuous Time
• Finite-Horizon Dynamic Programming

Assessment Elements

• Final test
  Open questioned test
• Homework 1
  Homework will be collected, marked and returned to the students
• Homework 2
  Homework will be collected, marked and returned to the students

Interim Assessment

• Interim assessment (1 module)
  0.6 * Final test + 0.2 * Homework 1 + 0.2 * Homework 2

Bibliography

Recommended Core Bibliography

• A first course in optimization theory, Sundaram, R. K., 2011
• Dynamic optimization : the calculus of variations and optimal control in economics and management, Kamien, M. I., 2012
• Mathematics for economists, Simon, C. P., 1994

Recommended Additional Bibliography

• Kamien, M. I., & Schwartz, N. L. (2012). Dynamic Optimization, Second Edition : The Calculus of Variations and Optimal Control in Economics and Management (Vol. 2nd ed). Mineola, N.Y.: Dover Publications. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1154370