INTERNATIONAL 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
ECO2066 Mathematics for Economics Spring 3 0 3 6

Basic information

Language of instruction: English
Type of course: Must Course
Course Level: Bachelor’s Degree (First Cycle)
Mode of Delivery: Face to face
Course Coordinator : Assoc. Prof. KAAN İRFAN ÖĞÜT
Course Objectives: This class is intended to introduce students to the mathematical concepts reqired in the analysis of economic models. Topics will include functions, calculus of single and two variables, unconstrained and constrained optimization techniques, integration and matrix algebra.

Learning Outcomes

The students who have succeeded in this course;
1. understand calculus of single variables, including optimization of functions of single variables and its application in economics
2. understand calculus of several variables, including optimization of functions of several variables, without and under constraints and be able to apply optimization techniques in economics
3. understand simple first order difference equations and be able to apply their knowledge to simple problems in economic Dynamics
4. understand integration and its application in economics through the surplus calculation.

Course Content

The teaching methods of the course are Lecture, Technology Enhanced Learning and Problem Solving.
Multivariate functions are taught, which are necessary for describing the relationships between economic variables through functions. Unconstrained and constrained static optimization methods are discussed. Difference equations are taught in order to perform dynamic analysis. The use of each of these concepts in economics is discussed with examples.

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Applications of Geometric Series in Economics Okun's Law
1)
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2) Applications of Geometric Series in Economics Multiplier in National Income Model Mathematics of Finance
3) Applications of Geometric Series in Economics Dynamic Price Models with Difference Equations Cobweb Model with Expectations Fibonacci Sequences and Golden Ratio
4) Applications of Linear Functions in Economics IS – LM Model
5) Derivative Rules & Convexity Analysis of Nonlinear Functions Applications of Nonlinear Functions in Economics Exponential and Logarithmic Functions and Monotonic Transformations Discrete and Continuous Growth Logistic Equation
6) Derivative Rules & Convexity Analysis of Nonlinear Functions Applications of Nonlinear Functions in Economics Relationship Between Marginal and Average Functions Mark-up Pricing and Elasticity Inefficiencies of Tax and Monopolistic Pricing
7) One Variable Optimization in Economics Profit Maximization in Perfectly Competitive Market and in Monopoly
8) Midterm Exam
9) Multivariable Functions and Multivariable Differential Calculus Partial Differentiation. Production Theory Homogeneity and Returns to Scale Applications to Comparative – Static Analysis: Market and National Income Models Inefficiencies of Taxand Monopolistic Pricing
10) Multivariable Optimization Problem of Multi- Product Firm Price Discrimination of Monopoly Input Decisions of Firm Multivariable Optimization
11) Multivariable Optimization Profit Maximization in Oligopoly
12) Multivariable Constrained Optimization Output Maximization and Cost Minimization
13) Multivariable Constrained Optimization Utility Theory and Utility Maximization Consumer Demand, Income and Substitution Effects
14) Applications of Integrals in Economics Consumer’s and Producer’s Surplus and Deadweight Loss

Sources

Course Notes / Textbooks: Fundamental Methods of Mathematical Economics, Alpha Chiang and Kewin Wainwright, Mc Graw Hill, Fourth Edition, 2005.

Mathematics for Economics and Business, Ian Jacques , Prentice Hall, Eighth Edition, 2015.
References:

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Quizzes 3 % 10
Midterms 1 % 40
Final 1 % 50
Total % 100
PERCENTAGE OF SEMESTER WORK % 50
PERCENTAGE OF FINAL WORK % 50
Total % 100

ECTS / Workload Table

Activities Number of Activities Duration (Hours) Workload
Course Hours 13 3 39
Study Hours Out of Class 13 6 78
Quizzes 3 6 18
Midterms 1 1 1
Final 1 2 2
Total Workload 138

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) To correctly identify the problems and to be able to ask the correct questions
2) To have the ability for problem solving and to utilize analytical approach in dealing with the problems of finance
3) To understand and grasp the full details of theoretical arguments and counter arguments
4) To be fully prepared for a graduate study in finance and to have lifelong learning awareness
5) To be able to apply theoretical principles of finance to the realities of practical business life
6) To develop solutions for managerial problems by understanding the requirements of international financial markets
7) To think innovatively and creatively in complex situations
8) To be able to make decisions both locally and internationally by knowing the effects of globalization on business and social life
9) To have the competencies of the digital age and to use the necessary financial applications
10) To be able to use at least one foreign language both for communication and academic purposes
11) To understand the importance of business ethics and to take decisions by knowing the legal and ethical consequences of their activities in the academic world and business life
12) To develop an objective criticism in business and academic life and having a perspective to self-criticize