Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.

LEARNING OUTCOMES

This course is intended to aid the student in developing comfort and familiarity with the level of mathematics used in economics research. The course focuses on specifically on a careful treatment of optimization as applied to economic models. Special focus is given to introducing and developing fundemental tools in convex optimization and dynamic optimization. 

Credits: 6

Schedule: 25.02.2025 - 10.04.2025

Teacher in charge (valid for whole curriculum period):

Teacher in charge (applies in this implementation): Mitri Kitti

Contact information for the course (applies in this implementation):

CEFR level (valid for whole curriculum period):

Language of instruction and studies (applies in this implementation):

Teaching language: English. Languages of study attainment: English

CONTENT, ASSESSMENT AND WORKLOAD

Content
  • valid for whole curriculum period:

    • Must know: KKT conditions, convex programming, the value function, the maximum principle, principle of optimality, value functions, bellman equations

    • Should know: Properties of metric spaces, optimization with uncertainty, continuous time optimization, numerical optimization methods

    • Nice to know: Properties of dynamical systems, phase diagrams, Markov decision problems, stochastic processes

     

Assessment Methods and Criteria
  • valid for whole curriculum period:

    Exam and Assignments

Workload
  • valid for whole curriculum period:

    • Contact teaching 24h
    • Exercise Sessions 8h
    • Exam 2h
    • Independent work 126h 

DETAILS

Study Material
  • valid for whole curriculum period:

    Textbook: Avinash Dixit, “Optimization in Economic Theory: Second Edition,” Oxford University Press, 1990

Substitutes for Courses
Prerequisites

FURTHER INFORMATION

Further Information
  • valid for whole curriculum period:

    Teaching Language: English

    Teaching Period: 2024-2025 Spring IV
    2025-2026 Spring IV