## ES50152: Quantitative methods for economics and game theory

[Page last updated: 02 August 2022]

Owning Department/School: Department of Economics
Credits: 10 [equivalent to 20 CATS credits]
Notional Study Hours: 200
Level: Masters UG & PG (FHEQ level 7)
Period:
Semester 1
Assessment Summary: CW 40%, EX 60%
Assessment Detail:
• Coursework (CW 40%)
• Exam (EX 60%)
Supplementary Assessment:
Like-for-like reassessment (where allowed by programme regulations)
Requisites:
Learning Outcomes: At the end of the unit students should be able to:
* Apply principles of economic-mathematical modelling to practical economic and business problems;
* Evaluate economic and business problems by designing appropriate economic-mathematical models;
* Solve, analytically or numerically, economic-mathematical models using advanced quantitative methods;
* Develop analytically founded policy or business recommendations.

Construct programs using mathematical computing software in order to solve/simulate economic models capturing important real-world phenomena.

Aims: This unit aims to enable students to present economic and business problems as mathematical problems and solve them using advanced quantitative techniques. It also aims to enable students to interpret intuitively mathematical solutions and develop policy and business recommendations.

Skills: Ability to identify and evaluate appropriate mathematical methods for economic modelling

Ability to create logically rigorous arguments

Ability to evaluate the suitability of economic models and methods for given real-world applications.

Content: This unit will cover advanced methodological topics in economics and econometrics, including computational methods and applications. The emphasis of this unit is on nonlinear models and optimization techniques. Programming in MATLAB will be used throughout the unit.

* Static Optimization
- the mathematical programming problem
- the method of Lagrange multipliers
- nonlinear programming
- linear programming

* Applications of Static Optimization
- Theory of the Household (the neoclassical problem of the household, comparative statics, revealed preference, von Neumann Morgenstern utility)
- Theory of the Firm (production function, neoclassical theory of the firm, comparative statics, imperfect competition (monopoly, monopsony), oligopoly)
- General Equilibrium
- Welfare Economics (competitive equilibrium and Pareto optimality, market failure)

* Econometrics
- Linear regression models
- Nonlinear regression models (Nonlinear Least Squares, Maximum Likelihood).

Programme availability:

#### ES50152 is a Designated Essential Unit on the following programmes:

Department of Economics
• THES-AFM30 : MSc Economics for Business Intelligence and Systems

 Notes: This unit catalogue is applicable for the 2022/23 academic year only. Students continuing their studies into 2023/24 and beyond should not assume that this unit will be available in future years in the format displayed here for 2022/23. Programmes and units are subject to change in accordance with normal University procedures. Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules. Find out more about these and other important University terms and conditions here.