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Mathematical Methods in Macroeconomics - JEM183

Title:	Mathematical Methods in Macroeconomics
Czech title:	Mathematical Methods in Macroeconomics
Guaranteed by:	Institute of Economic Studies (23-IES)
Faculty:	Faculty of Social Sciences
Actual:	from 2017 to 2019
Semester:	winter
E-Credits:	6
Examination process:	winter s.:combined
Hours per week, examination:	winter s.:2/2, Ex [HT]
Capacity:	185 / 185 (20)
Min. number of students:	unlimited
4EU+:	no
Virtual mobility / capacity:	no
State of the course:	taught
Language:	English
Teaching methods:	full-time
Teaching methods:	full-time
Note:	course can be enrolled in outside the study plan enabled for web enrollment priority enrollment if the course is part of the study plan

Guarantor:	prof. Ing. Miloslav Vošvrda, CSc. doc. PhDr. RNDr. Josef Stráský, Ph.D.
Teacher(s):	doc. PhDr. RNDr. Josef Stráský, Ph.D.
Class:	Courses for incoming students
Incompatibility :	JEM096
Interchangeability :	JEM096
Is incompatible with:	JEM096
Is interchangeable with:	JEM096

Examination dates Schedule Noticeboard

Annotation -

Last update: doc. PhDr. RNDr. Josef Stráský, Ph.D. (06.10.2022)

https://dl1.cuni.cz/user/index.php?id=2709

The course is focused on mathematical methods which are underlying modern economic theory such as difference and differential equations and their systems, dynamic optimization methods, dynamic programming, foundations of nonlinear dynamics and approximation methods such as linearization and log-linearization. Developed mathematical tools are used in solving important economic models such as the IS-LM model or Ramsey model. Students will extensively use Python (prior knowledge is not required - a detailed introduction will be provided).

The course will will be taught live, in person, at the Institute according to the timetable (Thursday 2 PM - 5 PM, room 314).

Literature -

Last update: doc. PhDr. RNDr. Josef Stráský, Ph.D. (06.10.2022)

Ronald Shone: Economic Dynamics: Phase Diagrams and their Economic Application, Cambridge University Press, 2003
Ronald Shone: An Introduction to Economic Dynamics, Cambridge University Press, 2001
Dawkins, Paul: Differential Equations: http://tutorial.math.lamar.edu/ (follow the link to Differential Equations (Math 3301) link).
Hájková, John, Kalenda, Zelený: Matematika, Matfyzpress, Praha 2006

Ljunqvist, Sargent: Recursive Macroeconomic Theory, third edition, The MIT Press 2012
Jianjun Miao: Economic Dynamics in Discrete Time, The MIT Press 2014
Jerome Adda and Russell Cooper: Dynamic Economics - Quantitative Methods and Applications

Requirements to the exam -

Last update: doc. PhDr. RNDr. Josef Stráský, Ph.D. (06.10.2022)

Workshop style course

Problem Sets – 4 problem sets, 6 points each

Creative homework (project) – 6 points

Exam – 24 points (written exam + short oral discussion; during the exam period after Christmas).

Activity during the lectures/seminars – some extra points.

To pass the course you must:

Attempt to solve each problem set and the "project".

Get at least 70% points from problem sets and the "project".

Get at least 60% points from exam,

Get at least 70% points total.

All homeworks will be pusblished and handed over via Moodle (Moodle 1 !)

https://dl1.cuni.cz/user/index.php?id=2709

Syllabus -

Last update: doc. PhDr. RNDr. Josef Stráský, Ph.D. (06.10.2022)

Intro to course, Intro to Python, Differential equations, Exercises

Solow model, Harrod-Domar model, Exercises
Difference equations, Multiplier-Accelerator
Systems of differential, ISLM
Dornbusch model

Optimization (continuous), Ramsey model
Optimization (discrete), Belman equation (cake eating)

Heterogeneous agents
Christmas lecture = repetition