Course detail

Mathematic of Economics

FP-OmaePAcad. year: 2020/2021

The subject deals with the modelling of economic processes (micro and macro) by means of exact means of current engineering mathematics.
Students will also learn the basics of continuous and discontinuous dynamic models in economics. Mathematical models are used to create selected differential and differential equations of first and second order. Mathematical theory is illustrated by examples of dynamic systems in economic theory.
The emphasis is on mathematical formulation, economic interpretation and verification of results.

Language of instruction

Czech

Number of ECTS credits

6

Mode of study

Not applicable.

Learning outcomes of the course unit

The subject is focused on precise mathematical formulation of economic models and at the same time appropriate economic interpretation of these models.

Prerequisites

Microeconomics, Macroeconomics, Mathematics I, Mathematics II

Co-requisites

Not applicable.

Planned learning activities and teaching methods

The lectures are in the form of lectures which have the character of interpretation of basic principles, methodology of given discipline and problems. The main emphasis is put on explaining the essence of each method and its general characteristics.

Assesment methods and criteria linked to learning outcomes

Students will obtain credit based on successful presentation of seminar paper on a chosen topic.

EXAM: The form of the exam is written and the teacher reserves the right to the oral examination. The maximum number of points in the exam is 100 points, and the student must earn at least 50 points in order to obtain a rating of at least E..

Course curriculum

1. Basic principles of economic analysis and modeling
2. Demand, supply, multipliers for microeconomic variables
3. Optimization
4. Models of national economy, multipliers for macroeconomic variables
5. Discrete dynamic systems - differential equations
6. Mathematical modeling of dynamic balance - discrete dynamic spider model
7. Continuous dynamic systems of repetition and deepening of basic concepts of differential equations theory
8. Continuous dynamic systems
9. Mathematical modeling of dynamic balance - continuous dynamic spider model
10. Continuous dynamic systems - Walras's model of general equilibrium
11. Continuous Ddnamic systems - Solow's growth model
12. Continuous Dynamic Systems - Philips Model for a Closed Economy
13. Business cycle models

Work placements

Not applicable.

Aims

Students will learn the basics of continuous and discontinuous dynamic models in economics. Mathematical models are used to create selected differential and differential equations of first and second order. The aim of the course is to introduce continuous and discrete economic dynamic systems with an emphasis on mathematical formulation, economic interpretation and verification of results. Mathematical theory is illustrated by examples of dynamic systems in economic theory

Specification of controlled education, way of implementation and compensation for absences

Not applicable.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

ALLEN, R. G. D. Matematická ekonomie. Přeložil Martin ČERNÝ. Praha: Academia, 1971.

Recommended reading

CHIANG, A. C. Fundamental methods of mathematical economics. 3rd ed. New York: McGraw-Hill, 1984. ISBN 0-07-010813-7.
POLOUČKOVÁ, A. a E. OŠŤÁDALOVÁ. Diferenciální a diferenční rovnice. Ostrava: Vysoká škola báňská - Technická univerzita, 2003. ISBN 80-248-0267-8.

eLearning

Classification of course in study plans

  • Programme MGR-MEO Master's, 2. year of study, winter semester, compulsory

Type of course unit

 

Lecture

26 hours, optionally

Teacher / Lecturer

Exercise

26 hours, optionally

Teacher / Lecturer

eLearning