Quantitative Methods in Economy
- Credits: 5
- Ending: Examination
- Range: 2P + 2C
- Semester: summer
- Year: 3
- Faculty of Economics and Finance
Teachers
Included in study programs
Teaching results
Knowledge
By completing the course, students deepen their understanding of fundamental quantitative methods in mathematical analysis, optimization, and probability. They comprehend their applications in economic literature.
Skills
Upon completing the course, students will be able to solve problems in economic analysis and optimization graphically, algebraically, and numerically using appropriate software. They will also be capable of explaining and replicating problem solutions from economic literature.
Competencies
The acquired knowledge and skills can be applied in further studies, in writing a thesis, and directly in economic practice. Students will be able to formalize problems, as well as identify and apply appropriate methods for their solutions.
Indicative content
1. Introduction, motivation through models used in practice, software overview
2. Function, functional relationships in economics; limit, continuity
3. Linear function, linear relationships in economic analysis
4. Function derivative, elasticity; nonlinear relationships, quadratic dependence in economic analysis
5. Function of multiple variables in economic analysis; partial derivative, marginal quantities, directional derivative, gradient
6. Constrained extremum – Lagrange method, multipliers, applications
7. Kuhn-Tucker conditions in economic analysis
8. Applications of integral calculus for functions of one and multiple variables
9. Introduction to probability – combinatorial and geometric probability, discrete and continuous random variables
10. Theoretical and empirical probability distributions, applications in social sciences
11. Conditional probability, Bayes' theorem
12. Composite indicators, weighting and aggregation schemes
13. Synthesis, revisiting selected problems
Support literature
1. Chiang, A.C. & Wainwright, K. (2005). Fundamental methods of mathematical economics, 4ed. McGraw-Hill.
2. Hoy, M., Livernois, J., McKenna, C., Rees, R., & Stengos, T. (2022). Mathematics for economics, 4ed. MIT press.
Requirements to complete the course
Class participation, ongoing written assignments, and homework: 30%
Written assignment and practical calculation on PC: 40%
Oral exam: 30%
Student workload
Total study load 156 hours
Lectures 26 hours
Seminars 26 hours
Preparing for seminars and seminar homework 20 hours
Preparing for evaluations during the semester 32 hours
Final exam preparation 52 hours
Language whose command is required to complete the course
English
Date of approval: 17.02.2022
Date of the latest change: 03.01.2022