Information Package / Course Catalogue
Mathematics Applications in Economy
Course Code: BFN530
Course Type: Area Elective
Couse Group: Second Cycle (Master's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 5
Objectives of the Course

To equip the student with powerful tools to write a macroeconomic model, to define an equilibrium, to approximate the equilibrium using computational methods.

Course Content

Introduction to quantitative macroeconomics. Benchmark deterministic model and competitive equilibrium. Steady state. Calibration and simulation of a simple real business cycle (RBC) model.

Name of Lecturer(s)
Lec. Yılmaz ERDEM
Learning Outcomes
1.To be able to build a macroeconomic model
2.To be able to define and explain equilibrium in macroeconomics
3.To be able to distinguish between stochastic and deterministic shocks
4.To be able to calibrate and simulate a simple macroeconomic model
5.Disiplin içi ve disiplinler arası takım çalışması yapabilme
Recommended or Required Reading
1.The ABCs of RBCs, An Introduction to Dynamic Macroeconomic Models, McCandless, George Harvard University press, 2008
2.Macroeconomic Theory, A Dynamic General Equilibrium Approach, Michael Wickens, princeton University press, 2008
Weekly Detailed Course Contents
Week 2 - Theoretical
Competitive Equilibrium in One Period World I
Week 3 - Theoretical
Competitive Equilibrium in One Period World II
Week 4 - Theoretical
Competitive Equilibrium in a Two Period World
Week 5 - Theoretical
Competitive Equilibrium in a Finite Period World
Week 6 - Theoretical
The Social Planner Problem and the Welfare Theorems
Week 7 - Theoretical
The Steady State
Week 8 - Intermediate Exam
Midterm Exam
Week 9 - Theoretical
Introduction to Matlab and Dynare I
Week 10 - Theoretical
Introduction to Matlab and Dynare II
Week 11 - Theoretical
Calibrating and simulating a Basic Real Business Cycle Model I
Week 12 - Theoretical
Calibrating and simulating a Basic Real Business Cycle Model II
Week 13 - Theoretical
Project Presentations
Week 14 - Theoretical
Project Presentations
Week 15 - Theoretical
Project Presentations
Week 16 - Final Exam
Final Exam
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory142370
Individual Work72228
Midterm Examination110111
Final Examination115116
TOTAL WORKLOAD (hours)125
Contribution of Learning Outcomes to Programme Outcomes
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