Numerical Methods for Economics

Code:

2ECON04

Acronym:

MN

Keywords
Classification	Keyword
CNAEF	Mathematics

Instance: 2013/2014 - 1S (of 09-09-2013 to 20-12-2013)

Active?	Yes
Web Page:	https://moodle.up.pt/course/view.php?id=84
Responsible unit:	Agrupamento Científico de Matemática e Sistemas de Informação
Course/CS Responsible:	Master in Economics

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
ME	51	Bologna Syllabus	1	-	7,5	56	202,5

Teaching language

Portuguese

Objectives

This course deals with the numerical analysis issues considered more important and appropriate for the resolution of economic problems using a computer. The aim is to provide students with the minimum numerical and computational techniques necessary for the implementation and resolution of economic problems in computer. Emphasis will be placed on intuition and applicatibility conditions of methods and not on their deductiblility and computer implementation (although in individual cases it can also follow this approach). The aim is also for students to acquire awareness of the potential and limitations of finite precision arithmetic.

Learning outcomes and competences

Working method

Presencial

Program

Introduction to MATLAB /OCTAVE Finite precision arithmetic Introduction to Programming Linear Systems of equations Systems of nonlinear equations Eigenvalues and eigenvectors Interpolation and least squares Differential equations

Mandatory literature

Moler, Cleve B.; Numerical computing with MATLAB. ISBN: 0-89871-560-1
Judd, Kenneth L; Numerical methods in economics. ISBN: 0-262-10071-1

Complementary Bibliography

Hendrick, David A.; Computational economics. ISBN: 0-691-12549-X

Teaching methods and learning activities

The course is organized in lab sessions, based on modules. The teaching methodology in each module is structured as follows: • description of the problem to solve; • identification with explanation of the appropriate numerical methods for their resolution; • examples of application in economics; • exercises (sedimentation and knowledge exploitation).

Software

MATLAB
OCTAVE / QTOCTAVE

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Participação presencial	10,00
Trabalho laboratorial	90,00
Total:	100,00

Eligibility for exams

Evaluation will be based on the achievement of 3 jobs held during the semester, as well as class participation.

Calculation formula of final grade

2x35% OJ + 20% FT+ 10% CP where: OJ - Oriented Job: answer to a set of questions (date and time required to complete to be defined) FT - Free Theme: completion of a report topic, preferably economic, proposed by the student CP - Class participation (or final exam)