Stockholm Doctoral Program in Economics, Econometrics and Finance (SDPE)

Fall 2008

 

 

Mathematics II

 

Instructors:                           Martin Flodén (martin.floden@ne.su.se)

                                            John Hassler (john@hassler.se)

 

TA:                                      David von Below (david.vonbelow@iies.su.se)

 

 

Course summary

 

This course focuses on dynamic systems, i.e. systems that evolve over time. The analysis of dynamic systems is of core importance in many areas of economics. Growth, business cycles, asset pricing, and dynamic game theory are just a few examples.

 

The course provides tools for analyzing and solving dynamic systems. Dynamic systems faced by economists often lack explicit analytical solutions. The course gives an introduction to numerical methods that then can be used to find approximate solutions.

 

The main text for the course is Sydsaeter et al. (2005), chapters 4-12.

 

The course TA will hand out assignments and discuss their solutions.

 

Students are expected to have access to the computer software Matlab. Matlab is or can be made available on computers both at SU and SSE.

 

 

Literature

 

§        Sydsaeter, Knut, Peter Hammond, Atle Seierstad, and Arne Strom, Further Mathematics for Economic Analysis, Prentice Hall, 2005

§        Fackler, Paul, A Matlab Primer, http://www4.ncsu.edu/unity/users/p/pfackler/www/MPRIMER.htm

§        Lecture notes: John’s lecture notes (tex format) (will change along the way as needed) .

§        Formula sheet for the exam.

 

 

Examination

 

The course grade will be based on the final exam. A passing grade requires that satisfactory solutions to all assignments have been handed in. While students are encouraged to cooperate on assignments, they must hand their own uniquely written solutions.