COURSE INTRODUCTION AND APPLICATION INFORMATION


Course Name
Applied Economic Topics
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
ECON 407
Fall/Spring
3
0
3
6
Prerequisites
 ECON 101To succeed (To get a grade of at least DD)
orECON 102To succeed (To get a grade of at least DD)
orGEEC 203To succeed (To get a grade of at least DD)
orECON 100To succeed (To get a grade of at least DD)
Course Language
English
Course Type
Elective
Course Level
First Cycle
Mode of Delivery -
Teaching Methods and Techniques of the Course
Course Coordinator
Course Lecturer(s)
Assistant(s) -
Course Objectives This course designed to help students move from the traditional and comparative static analysis of economic models to a modern and dynamic computational study. The ability to equate an economic problem, to formulate it into a mathematical model and to solve it computationally is becoming a crucial and distinctive competence for most economists. Therefore this course is organised around static and dynamic models, covering both macro- and microeconomic topics, exploring the numerical techniques required to solve those models. A key aim of the course is to enable students to develop the ability to modify the models themselves so that, using the MATLAB/Dynare codes, they can demonstrate a complete understanding of computational methods. This course aims to equip the student with powerful tools to write a microeconomic and macroeconomic model, to define an equilibrium, to approximate the equilibrium using computational methods, and calibrate and simulate the model so that the model can be used to answer economic questions.
Learning Outcomes The students who succeeded in this course;
  • Will be able to build a economic model.
  • Will be able to define and explain equilibrium in economics.
  • Will be able to calculate steady states.
  • Will be able to distinguish between stochastic and deterministic shocks.
  • Will be able to calibrate and simulate a simple macroeconomic model.
Course Description The course starts with an introduction to quantitative macroeconomics. We then discuss the benchmark deterministic model and competitive equilibrium. We then discuss steady state. The course continues with introduction to Matlab and Dynare programs in the Lab. It concludes with the discussion of calibration and simulation of a simple real business cycle (RBC) model.
Related Sustainable Development Goals

 



Course Category

Core Courses
Major Area Courses
X
Supportive Courses
Media and Managment Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Required Materials
1 Introduction to Matlab A&V: Chp 1
2 Matlab for economics
3 Supply and demand model and Matlab: Numerical results and simulations A&V: Chp 1
4 Economic model with international-trade policy: Numerical results A&V: Chp 1
5 IS–LM model in a closed economy: Matlab Program A&V: Chp 1
6 IS–LM model in an open economy: Matlab Program A&V: Chp 1
7 AD–AS model:Matlab Program and Numerical results and simulation A&V: Chp 1
8 Midterm
9 Utility Maximization and Matlab Fan Wng: Chp 9
10 Profit Maximization and Matlab Fan Wng: Chp 10
11 Introduction to Dynare Torres Chp 1-2
12 Solow Model and Matlab/Dynare Torres Chp 2
13 Ramsey Cass Koopmans Mosel and Matlab/Dynare A&V: Chp 12
14 Real Business Cycle (RBC) Model and Matlab/Dynare Junior Chp 1-2
15 Calibrating and simulating a Basic Real Business Cycle Junior Chp 1-2
16 Project Presentations
Course Notes/Textbooks

Afonso and Vasconcelos Computational Economics: A concise introduction (2016)

Suggested Readings/Materials

Junior Understanding DSGE Models_ Theory and Applications-Vernon Press (2016)

Torres Introduction to Dynamic Macroeconomic General Equilibrium Models-Vernon Press (2016)

Fan Wang: Introductory-Mathematics-for-Economists-with-Matlab (2020)

 

EVALUATION SYSTEM

Semester Activities Number Weigthing
Participation
15
10
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
2
30
Presentation / Jury
Project
Seminar / Workshop
Oral Exam
Midterm
2
40
Final Exam
1
20
Total

Weighting of Semester Activities on the Final Grade
19
80
Weighting of End-of-Semester Activities on the Final Grade
1
20
Total

ECTS / WORKLOAD TABLE

Semester Activities Number Duration (Hours) Workload
Course Hours
(Including exam week: 16 x total hours)
16
3
48
Laboratory / Application Hours
(Including exam week: 16 x total hours)
16
1
Study Hours Out of Class
16
1
16
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
2
20
Presentation / Jury
Project
Seminar / Workshop
Oral Exam
Midterms
2
25
Final Exams
1
10
    Total
180

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Competencies/Outcomes
* Contribution Level
1
2
3
4
5
1

To be able to acquire a sound knowledge of fundamental concepts, theories, principles and methods of investigation specific to the economic field.

X
2

To be able to apply adequate mathematical, econometric, statistical and data analysis models to process economic data and to implement scientific research for development of economic policies.

3

To be able to participate in academic, professional, regional, and global networks and to utilize these networks efficiently.

4

To be able to have adequate social responsibility with regards to the needs of the society and to organize the activities to influence social dynamics in line with social goals.

5

To be able to integrate the knowledge and training acquired during the university education with personal education and produce a synthesis of knowledge one requires.

6

To be able to evaluate his/her advance level educational needs and do necessary planning to fulfill those needs through the acquired capability to think analytically and critically.

X
7

To be able to acquire necessary skills to integrate social dynamics into economic process both as an input and an output.

8

To be able to link accumulated knowledge acquired during the university education with historical and cultural qualities of the society and be able to convey it to different strata of society.

9

To be able to take the responsibility as an individual and as a team member.

10

To be able to attain social, scientific and ethical values at the data collection, interpretation and dissemination stages of economic analysis.

X
11

To be able to collect data in economics and communicate with colleagues in a foreign language ("European Language Portfolio Global Scale", Level B1)

12

To be able to speak a second foreign at a medium level of fluency efficiently.

13

To be able to relate the knowledge accumulated throughout human history to their field of economics.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest