BAHÇEŞEHİR UNIVERSITY BİLGİ PAKETİ / DERS KATALOĞU
| ECONOMICS | |||||
| Bachelor | TR-NQF-HE: Level 6 | QF-EHEA: First Cycle | EQF-LLL: Level 6 | ||
Course Introduction and Application Information
| Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
| ECO4445 | Optimization Methods in Economics | Spring | 3 | 0 | 3 | 6 |
| This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester. |
Basic information
| Language of instruction: | English |
| Type of course: | Departmental Elective |
| Course Level: | Bachelor’s Degree (First Cycle) |
| Mode of Delivery: | Hybrid |
| Course Coordinator : | Assoc. Prof. KAAN İRFAN ÖĞÜT |
| Course Objectives: | Aim of this course is to teach static (unconstrained and constrained ) and dynamic optimisation techniques and to apply these methods on applications of microeconomics and macroeconomics. |
Learning Outcomes
|
The students who have succeeded in this course; 1. Use static (unconstrained and constrained) and dynamic optimization methods. 2. Apply these methods on problems of microeconomics and macroeconomics 3. Solve intertemporal optimization problems in economics. 4. Establish dynamic macroeconomic models and determine optimal path of their variables. 5. Select proper methods to optimize new models. |
Course Content
| 1 Unconstrained Optimization and Its Applications in Economics 2 Optimization with Equality Constraints: Production Theory 3 Optimization with Equality Constraints: Utility Theory 4 Optimization with Inequality Constraints 5 Optimization with Inequality Constraints 6 Optimal Control: Introduction 7 Optimal Control: The Pontryagin Maximum Principle 8 Optimal Control: The Pontryagin Maximum Principle 9 Optimal Control: Dynamic Programming 10 Optimal Control: Dynamic Programming 11 "Infinite Horizon and Overlapping Generations Model in Macroeconomics: Ramsey - Cass - Koopmans Model." 12 "Infinite Horizon and Overlapping Generations Model in Macroeconomics: Diamond Model." 13 Intertemporal Optimization: Real Business Cyle Theory 14 Intertemporal Optimization: Ricardian Equivalence |
Weekly Detailed Course Contents
| Week | Subject | Related Preparation |
| 1) | ||
| 1) | 1 Unconstrained Optimization and Its Applications in Economics | |
| 2) | 2 Optimization with Equality Constraints: Production Theory | |
| 3) | Optimization with Equality Constraints: Utility Theory | |
| 4) | Optimization with Inequality Constraints | |
| 5) | Optimization with Inequality Constraints | |
| 6) | Optimal Control: Introduction | |
| 7) | Optimal Control: The Pontryagin Maximum Principle | |
| 8) | Optimal Control: The Pontryagin Maximum Principle | |
| 9) | Optimal Control: Dynamic Programming | |
| 10) | Optimal Control: Dynamic Programming | |
| 11) | Infinite Horizon and Overlapping Generations Model in Macroeconomics: Ramsey - Cass - Koopmans Model. | |
| 12) | Infinite Horizon and Overlapping Generations Model in Macroeconomics: Ramsey - Cass - Koopmans Model. | |
| 13) | Intertemporal Optimization: Real Business Cyle Theory | |
| 14) | Intertemporal Optimization: Ricardian Equivalence |
Sources
| Course Notes / Textbooks: | Alpha C. Chiang - Kevin Wainwright. Fundamental Methods of Mathematical Economics. McGraw-Hill Education. (2005) Ronald shone. Economic Dynamics: Phase Diagrams and their Economic Application.Cambridge University Press (2003) |
| References: | Morton I. Kamien, Nancy L. Schwartz. Dynamic Optimization, Second Edition: The Calculus of Variations and Optimal Control in Economics and Management. Dover Books on Mathematics (2012). David Romer, Advanced Macroeconomics, Mcgraw-Hill Education (2011) |
Evaluation System
| Semester Requirements | Number of Activities | Level of Contribution |
| Quizzes | 3 | % 30 |
| Midterms | 1 | % 15 |
| Final | 1 | % 55 |
| Total | % 100 | |
| PERCENTAGE OF SEMESTER WORK | % 45 | |
| PERCENTAGE OF FINAL WORK | % 55 | |
| Total | % 100 | |
ECTS / Workload Table
| Activities | Number of Activities | Duration (Hours) | Workload |
| Course Hours | 14 | 3 | 42 |
| Study Hours Out of Class | 14 | 2 | 28 |
| Quizzes | 3 | 5 | 15 |
| Midterms | 1 | 12 | 12 |
| Final | 1 | 12 | 12 |
| Total Workload | 109 | ||
Contribution of Learning Outcomes to Programme Outcomes
| No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
| Program Outcomes | Level of Contribution | |
| 1) | As a world citizen, she is aware of global economic, political, social and ecological developments and trends. | 1 |
| 2) | He/she is equipped to closely follow the technological progress required by global and local dynamics and to continue learning. | 1 |
| 3) | Absorbs basic economic principles and analysis methods and uses them to evaluate daily events. | 4 |
| 4) | Uses quantitative and statistical tools to identify economic problems, analyze them, and share their findings with relevant stakeholders. | 4 |
| 5) | Understands the decision-making stages of economic units under existing constraints and incentives, examines the interactions and possible future effects of these decisions. | 4 |
| 6) | Comprehends new ways of doing business using digital technologies. and new market structures. | 3 |
| 7) | Takes critical approach to economic and social problems and develops analytical solutions. | 4 |
| 8) | Has the necessary mathematical equipment to produce analytical solutions and use quantitative research methods. | 5 |
| 9) | In the works he/she contributes, observes individual and social welfare together and with an ethical perspective. | 1 |
| 10) | Deals with economic problems with an interdisciplinary approach and seeks solutions by making use of different disciplines. | 4 |
| 11) | Generates original and innovative ideas in the works she/he contributes as part of a team. | 1 |