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, the students develop basic analytical skills. They understand the use of quantitative methods and techniques in economics. They know how to use derivatives in solving optimization problems in economics, e.g., in determining the situation in which the profit or utility is at its maximum within the existing budget constraints. The students further understand the basics of economic modeling and economic analysis.
Skills
By completing the course, the students can compile and interpret a simple regression model. They understand the principle of experiment and natural experiment in the social sciences and understand the pitfalls of causal interpretation. They can evaluate the results of the experiment in Excel using basic statistical tools.
Competences
In seminars, analytical capacities are further enhanced by the ability to process various micro- or macro-data using basic statistical programs. They can interpret outputs correctly and derive recommendations for policy makers based on them. The students are able to use the acquired knowledge and skills in further studies, and also directly in economic practice.
Indicative content
Indicative content:
1. Introduction. Slope of a linear function
2. Solving optimization problems using partial derivatives. Derivatives of a function of one variable
3. Solving optimization problems using partial derivatives. Derivatives of a function of multiple variables.
4. Economic applications of derivatives of functions of multiple variables without constraints, the so-called unconstrained extremes.
5. Economic applications of derivatives of functions of multiple variables with a constraint in the form of equality, the so-called constraint extremes.
6. Solution of derivatives of a function of multiple variables with a constraint in the form of inequality, the so-called Kuhn-Tucker conditions.
7. Application of Khun-Tucker conditions in solving economic problems.
8. Introduction to the econometric analysis: the relationship between correlation and causality, hypothesis testing.
9. Experiments, natural experiments and quasi-experiments in social sciences.
10. Regression with quadratic term and logarithm.
11. Theoretical derivation of the so-called Diff-in-diff (differences in differences) model.
12. Application of a Diff-in-diff model to selected data. Interpretation of the results.
Support literature
E. Tipoe a R. Becker – Doing Economics, online: https://www.core-econ.org/doing-economics/
Wooldridge, Jeffrey M. Introductory econometrics: A modern approach. Nelson Education, 2016.
Chiang, Alpha C. "Fundamental metods of mathematical economics." (1984).
Requirements to complete the course
Evaluation during the semester and homework 40 %
Final exam 60 %
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
Slovak
Date of approval: 17.02.2022
Date of the latest change: 03.01.2022