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.