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L13614 Numerical Methods in Economics (10 Credits)

Prerequisite: L11106 Quantitative Economics I or L11121 Mathematical Economics

Lecturer: Dr. Alex Possajennikov
Contact details: Phone: 0115 951 546,1 Email: alex.possajennikov@nottingham.ac.uk

Lecturer: Mr G. V. Reed
Contact details: Phone 0115 951 5482, Email: geoffrey.reed@nottingham.ac.uk

 
 
 

module description and content

module aims and objectives

module downloads

 

lectures and tutorials

module assessment

module texts

Module Description & Content back to top of page

The first part of the module (given by Mr Reed) covers the calibration and numerical solution of non-linear neo-classical economic models, starting with partial equilibrium models of markets and progressing to general equilibrium models of an economy. The second part (given by Dr Possajennikov) is concerned with more detailed analysis of numerical methods employed in economics, and with numerical simulations of agent-based economic models.

The numerical solution of the models covered by Mr Reed will be implemented using Excel spreadsheets, and in particular by the use of the "Solver" add-in that comes with Excel. Excel will also be used to demonstrate other examples of the use of numerical methods in economics. The agent-based economic modelling will be illustrated with the help of websites that use it.

Module Aims and Objectives

This module aims to introduce students to some of the numerical techniques that can be used to model economic problems and to solve economic models, namely Non-Linear Programming, and Agent-Based Economic Modelling. The module covers both the application and the theory of the methods.

By the end of the module, students should have enhanced their abilities in the following dimensions as detailed in the Programme Specification for BA Economics:

Knowledge and Understanding:

  • A2 Apply core economic theory and economic reasoning to applied topics.
  • A3 Show understanding of advanced analytical methods.
  • A5 Show understanding of relevant mathematical and statistical techniques.

Intellectual Skills:

  • B1 Apply complex ideas to solve problems.
  • B3 Reason logically and work analytically.

Professional/Practical Skills:

  • C1 Identify appropriate economic models.
  • C2 Use appropriate techniques to solve problems.
  • C3 Justify conclusions using economic arguments with appropriate rigour.

Key/Transferable Skills:

  • D1 Apply mathematical, statistical and graphical techniques in an appropriate manner.
  • D2 Communicate effectively in a written format.

Module Downloads back to top of page

Module materials are available in WebCT. A password may be required to access this material.

Lectures and Tutorials back to top of page

Economics lecture timetables are available online at www.nottingham.ac.uk/economics/teaching/timetables/.

There are 18 hours of lectures plus 4 tutorials throughout the semester.

Lectures will provide the basic information in each topic and will form the foundation for further reading and analysis on an individual basis. Tutorials are compulsory for all students taking this module.

Module Assessment back to top of page

There is a compulsory 2 hour examination at the end of the module which constitutes 100% of the assessment for the module.

Previous Examination Papers and Feedback for all modules can be viewed online but is restricted to registered students only. A password may be required to access this material.

Module Texts back to top of page

There is no set textbook for the module. One book that can give an idea what the module is about is Kendrick, D.A., Mercado, P.R. and Amman, H.M., "Computational Economics", Princeton University Press (2006).

However, only a small part of the book is directly relevant to the module. For a more detailed explanation of numerical techniques, the book Miranda, M., Fackler, P. "Applied Computational Economics and Finance", MIT Press (2002) can be useful.

For the agent-based economic modelling, a good source of material is Prof Leigh Tesfatsion's (Iowa State University) website.

Further references and additional reading will be provided in class.

Plagiarism
Students are reminded that plagiarism is a very serious academic offence and that they should refer back to their Student Handbook for confirmation of what it is and the penalties for committing it. Students are further reminded that they have signed a declaration acknowledging that they understand the nature of the offence and the attendant penalties.

Those students taking this module from outside the School should consult with the lecturer who will provide a copy of the relevant pages from the School's Student Handbook and a declaration form which they must sign.

Further Information
If you have any questions regarding this module please feel free to contact the lecturer. At the end of this semester, we would welcome your views on the organisation and content of this module. Please take a few moments to fill in an electronic Module Lecture Feedback form or Module Tutorial Feedback form. Alternatively, you may pick up similar forms in hard copy from the Economics School Office. Many thanks.

Last updated 9/09/09 back to top of page

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