28895 - Mathematical Economics

Course contents

1. Qualitative study of first-order ordinary differential and difference equations. Steady states and stability. The capital accumulation equation.

2. Linear systems of first-order ordinary difference and differential equations with constant coefficients

3. Qualitative study of first-order non-linear system of difference and differential equations.

4. Optimal intertemporal choice in continuous time (Hamiltonian based)

5. Optimal intertemporal choice in discrete time (Bellman-equation based)

Readings/Bibliography

Simon C. and L. Blume, Mathematics for Economists, Part V

Leonard D., N. van Long (1992), Optimal Control Theory and Static Optimization in Economics, CUP

Chiang A. (1992), Elements of Dynamic Optimization, McGraw-Hill

Pavoni N. (2008) Notes on dynamic macro

Stokey N, R. Lucas (1989), Recursive Methods in Economic Dynamics, HUP

Cugno F. and L. Montrucchio (1998). Scelte intertemporali. Teoria e modelli, Carocci

Teaching methods

Theory classes at the university premises, exercise sessions

Assessment methods

The course grade is based exclusively on a final written exam that will take place at the university premises (unless this is explicitly outlawed by the legislation in force at the exam date). The exam will have a duration of 90 to 120 minutes. During the exam students may consult a two-sided self-written (not photocopied, not printed) A4 sheet with whatever contents they find appropriate; this sheet should be handed in together with the answers to the exam questions.

Each student is entitled to renounce a passing (>=17.5) grade of Mathematical Economics one time only.

Passing numerical grades are intended to match the following qualitative description:

17.5-23: sufficient
24-27: good
28-29: very good
30 - 30 cum laude: excellent.

Teaching tools

A course page on Virtuale

Office hours

See the website of Iliyan Georgiev