BAHÇEŞEHİR UNIVERSITY BİLGİ PAKETİ / DERS KATALOĞU
| ECONOMICS AND FINANCE | |||||
| 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 | Fall | 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) | Build up a body of knowledge in mathematics and statistics, to use them, to understand how the mechanism of economy –both at micro and macro levels – works. | 5 |
| 2) | Understand the common as well as distinctive characters of the markets, industries, market regulations and policies. | 2 |
| 3) | Develop an awareness of different approaches to the economic events and why and how those approaches have been formed through the Economic History and understand the differences among those approaches by noticing at what extent they could explain the economic events. | 1 |
| 4) | Analyze the interventions of politics to the economics and vice versa. | 1 |
| 5) | Apply the economic analysis to everyday economic problems and evaluate the policy proposals for those problems by comparing opposite approaches. | 3 |
| 6) | Understand current and new economic events and how the new approaches to the economics are formed and evaluating. | 3 |
| 7) | Develop the communicative skills in order to explain the specific economic issues/events written, spoken and graphical form. | 2 |
| 8) | Know how to formulate the economics problems and issues and define the solutions in a well-formed written form, which includes the hypothesis, literature, methodology and results / empirical evidence. | 4 |
| 9) | Demonstrate the quantitative and qualitative capabilities and provide evidence for the hypotheses and economic arguments. | 5 |
| 10) | Understand the information and changes related to the economy by using a foreign language and communicate with colleagues. | 2 |