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
ECO2011	Linear Models 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 Lecturer(s):	Assoc. Prof. KAAN İRFAN ÖĞÜT
Recommended Optional Program Components:	None
Course Objectives:	This course aims to extend students’ knowledge and skills in linear and matrix algebra and to teach them how to use this techniques in economics.

Learning Outcomes

The students who have succeeded in this course;
1. Students will acquire basic knowledge in matrix algebra
2. Students will be able to understand how matrix algebra is used in economics
3. Students will be able to define systems of linear equations.
4. Students will be able to solve the simultaneous equation systems
5. Students will be able to use matrix algebra to analyze closed and open macroeconomic models.
6. Students will be able to combine concepts of probability and matrix in framework of Markov’s Chains
7. Students will be able to find Eigenvalues and Eigenvectors and use them in differential equations.

Course Content

Systems of Linear Equations
Matrices, Determinants and Systems of Linear Equations
Jacobian Matrix, Static Mundell-Fleming Models in Macroeconomics
Vectors and Matrices
Linear Transformations and Inner Product Spaces
The Leontief Input-Output Model in Economics
Markov Chains
Eigenvalues and Eigenvectors
Linear Programming: Graphical and Simplex Method.

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Vectors and Vector Spaces	.
2)	Matrices and Matrix Operations	.
3)	Determinants and Systems of Linear Equations	.
4)	Jacobian Matrix and Static Mundell-Fleming Models in Macroeconomics	.
5)	Leontief Input-Output Model in Economics	.
6)	Markov Chains	.
7)	Midterm Exam	.
8)	Eigenvalues and Eigenvectors	.
9)	Solving Systems of Linear Differential Equations with Eigenvalues and Eigenvectors	.
10)	Introduction to Dynamic Linear Simultaneous Differential Equation Systems and Dynamic IS-LM Model in Macroeconomics	.
11)	Linear Transformations	.
12)	Euclidean Spaces	.
13)	Inner Product Spaces	.
14)	LU Decomposition	.
15)	Linear Programming: Graphical and Simplex Method	.
16)	Final Exam	.

Sources

Course Notes / Textbooks:	Finite Mathematics, Barnett, R., Ziegler, M., Byleen, K., Pearson, 2010 Linear Algebra With Applications, G. Williams, Jones and Barlett Publishers, 4th Edition 2001
References:	Linear Algebra With Applications, G. Williams, Jones and Barlett Publishers, 4th Edition 2001

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Quizzes	4	% 20
Homework Assignments	4	% 20
Midterms	1	% 25
Final	1	% 35
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 65
PERCENTAGE OF FINAL WORK		% 35
Total		% 100

ECTS / Workload Table

Activities	Number of Activities	Duration (Hours)	Workload
Course Hours	14	3	42
Study Hours Out of Class	14	1	14
Homework Assignments	4	2	8
Quizzes	4	3	12
Midterms	1	10	10
Final	1	10	10
Total Workload			96

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.	5
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