[Forside] [Hovedområder] [Perioder] [Udannelser] [Alle kurser på en side]
Macroeconomics:
The students should be able to
·
analyze causes and consequences of business cycle fluctuations using explicitly mathematically formulated macroeconomic models,
·
explain and analyze macroeconomic models for open economies engaged in international trade in goods and capital, taking various exchange rate regimes into account,
·
explain and analyze the adjustment processes taking place from the short run to the long run,
·
explain and analyze the main macroeconomic policy areas, especially the effects of fiscal and monetary policy in closed ad open economies,
·
evaluate the importance of the assumptions made for the structure of the models and the results emanating from the models, in order to assess the strengths and weaknesses of the analyses.
Mathematics
The objectives are that the student after having participated in the mathematics part of this course should be able to
·
formulate and interpret economic and mathematical statements precisely by help of mathematical terminology and symbols
·
apply f
unctions of several variables and derive and interpret different types of derivatives and total differentials of these
f
unctions
·
apply the method of integration to find indefinite integrals and evaluate definite integrals of general as well as specific functions
·
apply the basic elements of linear algebra, i.e. vectors and matrices, to formulate multidimensional equations systems in a compact way and in addition, explain how the solutions in principle could be found
·
solve optimization problems with functions of one or several variables
·
analyse the characteristics of functions of one or several variables in order to determine whether one or several solutions exist to the optimization of the function
·
solve optimization problems with functions of one or several variables under a simple linear constraint
·
apply the above mentioned mathematical tools on economic problems in order to find results, that can be applied and analyzed within an economic context
Statistics
In the statistical part of the course, the participants should learn to
The course consists of three parts: Macroeconomics, mathematics and statistics. The macroeconomic part extends the analyses introduced in the Principles of Economics course. The models from that course are extended both in terms of content and methodology, such that mathematical analysis will become an integral ingredient of the model analysis. Starting from analyses of short-run business cycle fluctuations for closed and open economies, the focus is turned to medium to long run issues where prices become flexible. The models are applied to descriptions of the problems encountered by politicians when creating the institutional settings for economic policy. An example hereof is how international monetary cooperation can take place (the EMU is a concrete example).
Throughout, the theoretical analyses are exemplified with studies of current economic-political problems. Finally, institutional aspects of macroeconomic importance are considered.
Many problems encountered in economics can often be formulated and solved by using mathematical methods, and therefore, mathematics is an important tool in the analysis of fundamental problems in economics.
Economic decisions are in most situations mutually dependent through their influence on demand and supply, and therefore, the purpose of the course is to develop mathematical skills to be able to analyse such dependencies and their importance for the allocation of economic resources.
The mathematical part of t
his course builds on the students knowledge about mathematical analysis of functions of one variable and the optimization of this type of functions. This knowledge is extended by an introduction to the analysis of functions of several variables and by studying economic optimization problems without constraints. Moreover, a method to handle economic optimization problems with constraints is briefly introduced. In addition, the course introduces some important tools from the economists mathematical toolbox, including comparative static analysis. Furthermore, the students knowledge of basic linear algebra and integral calculus will be extended. Economic applications will be emphasized throughout the course, and the introduction of a mathematical software program will be an integral part of the teaching.
The statistical part of the course considers regression analysis, which is used in the macro part of the course. Regression is widely applied in economics to empirically investigate how a variety of factors, e.g. income and prices, is related to another factor, e.g. consumption. The statistical part also extends the probability theory learned in the Introduction to Statistics & IT course. Finally, there is an introduction to stochastic processes and distributions relevant for Bernoulli and Poisson processes e.g. waiting times to events happen.
COURSE SUBJECT AREAS:
Macroeconomics
1.
The IS-LM model for a closed economy
2.
The IS-LM model for a small open economy
3.
The supply side with and without nominal rigidities
4.
The AD-AS and DAD-SAS models
5.
Endogenous economic policy
6.
Exchange rate cooperation and monetary policy institutions
7.
Public deficits and public debt
8.
Evaluating business cycles
Mathematics
1.
Functions of several variables
2.
Integral calculus
3.
Linear algebra: The basic elements
4.
Optimization of functions of one variable
5.
Multivariable optimization
6.
Introduction to constrained optimization
Statistics
Lectures and tutorials.
Danish and English
Macroeconomics
Manfred Gärtner:
Macroeconomics
.
Second Edition, FT Prentice Hall, 2006, ch. 3-8 and 11-14 (ch. 1-2 may be read as an introduction). 282 pages.
Torben M. Andersen m.fl.: Beskrivende Dansk Økonomi.
Second Edition, Bogforlaget Handelsvidenskab, 2005, kap. 1,2,4-7 (some parts will be cursory readings). 232 pages.
Ministry of Finance: Økonomisk Redegørelse (latest edition). Only the summary is required reading (app. 35 pages).
Lecture Notes and Exercises are required readings.
Mathematics
1.
Alpha C. Chiang and Kevin Wainwright:
Fundamental Methods of Mathematical Economics.
Fourth edition.
2.
Miroslaw Majewski: Getting Started with
MuPAD.
Notes, weekly exercises and assignments are part of the curriculum.
Statistics
D.A. Berry and B.W. Lindgren, Statistics, Theory and Methods, 1996, chapters 1-6 and 15 (306 pages where about half is known from Introduction to Statistics and IT)
Malchow-Møller og Würtz, Indblik i statistik, 2003, chapter 14 (supplementary reading)
Notes, approximately 30 pages.
Notes, weekly exercises and assignments are part of the curriculum.
4 hours written exam with all non-electronic aids allowed.
For admission to the exam a compulsory assignment should be answered and approved. Moreover, in connection with the tutorials in mathematics and statistics at least 4 assignments, 2 in each, should be handed in and approved for admission to the exam.
EXAMINATION AIDS ALLOWED:
All - except any means of electronic communication including PCs
