Economic Modelling

Code:

2ME25

Acronym:

EM

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2022/2023 - 2S

Active?	Yes
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	17	Official Syllabus after 2021-2022	1	-	6	42	162

Teaching language

English

Objectives

The successful students will be able to use models in their work as economists. The successful students will be able to (i) solve dynamic models; (ii) introduce changes in existing models; (iii) construct simple models; and (iv) interpret the result obtained from the models both from the point of view of information gained and the model's limitations.

Learning outcomes and competences

The successful students will have acquired the technical skills and the critical capacity essential for a successful career in a job market where these characteristics are more and more an indispensible asset.

Working method

Presencial

Pre-requirements (prior knowledge) and co-requirements (common knowledge)

Elementary micro- and macro-economics. Calculus and elementary linear algebra.

Program

1. Dynamics: differential and difference equations.

1.1- Methods for solving 1-dimensional differential equations: separable, exact and Bernoulli. 

1.2- Qualitative study of 1-dimensional differential equations. 

1.3- Systems of differential equations. Solution for linear systems and qualitative study of linear and non-linear systems. 

1.4- Solution and qualitative study of difference equations. Geometrical methods for phase diagrams on the line.

1.5- Study of economic models.

2. Parametric models: consequences of parameter variation; benefits and drawbacks of introducing further parameters.

2.1-Differential equations on the line depending on parameters: bifurcation and robustness.

2.2-Saddle-node bifurcation. Invariant spaces for the study of the dynamics. 

2.3- Study of economic models.

Mandatory literature

Wei-Bin Zhang; Differential Equations, Bifurcations, and Chaos in Economics, World Scientific, 2005
Wei-Bin Zhang; Discrete Dynamical Systems, Bifurcations and Chaos in Economics, Elsevier, 2006
Giancarlo Gandolfo; Economic Dynamics: Study Edition, Springer, 2005

Comments from the literature

Scientific papers will be used when appropriate.

Teaching methods and learning activities

Presentation of the essential theoretical results together with examples and followed by the study of economic examples.

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Teste	50,00
Apresentação/discussão de um trabalho científico	50,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	106,00
Frequência das aulas	42,00
Apresentação/discussão de um trabalho científico	14,00
Total:	162,00

Eligibility for exams

The student is approved if the final mark is greater than or equal to 9,5 points.

Calculation formula of final grade

Final mark through continuous assessment= (mark of the written part + mark of the oral part)/2

The written part is made up of 2 written tests and the mark is obtained from the average of the marks of those tests. The tests take place in class.
The oral part is the result of the discussion/intervention/presentation of models, or part of models, or solution techniques for models, during class.

The final exam in the "Época de Recurso" is available to all students (for approval or rating improvement) and can take the form of an oral exam, or any other considered adequate.

Special assessment (TE, DA, ...)

The exams in special periods or occuring because of special status may be oral, or any other considered adequate.

Observations

There may be an oral exam to certify the mark obtained in the written part.