Course Detail
Course Description
| Course | Code | Semester | T+P (Hour) | Credit | ECTS |
|---|---|---|---|---|---|
| MATHEMATICAL METHODS for ECONOMICS and FINANCE | - | Spring Semester | 3+0 | 3 | 5 |
| Course Program |
| Prerequisites Courses | |
| Recommended Elective Courses |
| Language of Course | English |
| Course Level | First Cycle (Bachelor's Degree) |
| Course Type | Required |
| Course Coordinator | Prof.Dr. Rana ATABAY KUŞÇU |
| Name of Lecturer(s) | Prof.Dr. Mesut KARAKAŞ |
| Assistant(s) | |
| Aim | Acquisition of the basic knowledge and skill of using mathematical methods in modeling economic and financial phenomena in a multivariable framework. |
| Course Content | This course contains; Examples of linear economic models and their solutions using matrix algebra,Partial differentiation and its applications to comparative-static problems,Total differentials, implicit differentiation, implicit function theorem and its applications to comparative-static analysis,Total differentials, implicit differentiation, implicit function theorem and its applications to comparative-static analysis,Unconstrained optimization (multivariable; first- and second-order conditions),Unconstrained optimization (multivariable; first- and second-order conditions),Constrained optimization with equality constraints (multivariable; first- and second-order conditions),Constrained optimization with equality constraints (multivariable; first- and second-order conditions),Constrained optimization with equality constraints (multivariable; first- and second-order conditions),Time value of money – Single cash flow,Time value of money - Multiple cash flows,Time value of money – Applications in project valuation, Time value of money – Applications in bond valuation,Time value of money – Applications in stock valuation. |
| Dersin Öğrenme Kazanımları | Teaching Methods | Assessment Methods |
| 1. Will be able to build simple linear economic models and solve them using matrix algebra. | 16, 6, 9 | A, D |
| 1.1 Explains the logic of building economic and financial models. | ||
| 1.2 Explains the importance of linear economic and financial models. | ||
| 1.3 Solves linear economic and financial models using matrix algebra. | ||
| 2. Will be able to take partial derivatives and apply them to comparative-static problems. | 16, 6, 9 | A, D |
| 2.1 Explains the concept of partial differentiation. | ||
| 2.2 Takes partial derivatives of functions. | ||
| 2.3 Applies partial differentiation to comparative-static problems. | ||
| 3. Will be able to take total differentials, do implicit differentiation, and apply the implicit function theorem to comparative-static analysis. | 16, 6, 9 | A, D |
| 3.1 Takes total derivatives of functions. | ||
| 3.2 Does implicit differentiation. | ||
| 3.3 Explains the implicit function theorem and its significance. | ||
| 3.4 Applies the implicit function theorem to comparative-static analysis. | ||
| 4. Will be able to solve unconstrained optimization problems with more than one variables. | 16, 6, 9 | A, D |
| 4.1 Explain the first-order condition for unconstrained optimization problems with more than one variables. | ||
| 4.2 Explain the second-order condition for unconstrained optimization problems with more than one variables. | ||
| 4.3 Apply the first-order condition and the second order condition to unconstrained optimization problems with more than one variables. | ||
| 5. Will be able to solve constrained multivariate optimization problems with equality constraints. | 16, 6, 9 | A, D |
| 5.1 Explain the first-order condition for constrained optimization problems with more than one variables. | ||
| 5.2 Explain the second-order condition for constrained optimization problems with more than one variables. | ||
| 5.3 Apply the first-order condition and the second order condition to constrained optimization problems with more than one variables. | ||
| 6. Will be able to solve time-value-of-money problems and applied problems of project valuation, bond valuation, and stock valuation. | 16, 6, 9 | A, D |
| 6.1. Does time-value-of-money calculations. | ||
| 6.2. Solves project valuation problems. | ||
| 6.3. Solves bond valuation problems. | ||
| 6.4. Solves stock valuation problems. |
| Teaching Methods: | 16: Question - Answer Technique, 6: Experiential Learning, 9: Lecture Method |
| Assessment Methods: | A: Traditional Written Exam, D: Oral Exam |
Course Outline
| Order | Subjects | Preliminary Work |
|---|---|---|
| 1 | Examples of linear economic models and their solutions using matrix algebra | |
| 2 | Partial differentiation and its applications to comparative-static problems | |
| 3 | Total differentials, implicit differentiation, implicit function theorem and its applications to comparative-static analysis | |
| 4 | Total differentials, implicit differentiation, implicit function theorem and its applications to comparative-static analysis | |
| 5 | Unconstrained optimization (multivariable; first- and second-order conditions) | |
| 6 | Unconstrained optimization (multivariable; first- and second-order conditions) | |
| 7 | Constrained optimization with equality constraints (multivariable; first- and second-order conditions) | |
| 8 | Constrained optimization with equality constraints (multivariable; first- and second-order conditions) | |
| 9 | Constrained optimization with equality constraints (multivariable; first- and second-order conditions) | |
| 10 | Time value of money – Single cash flow | |
| 11 | Time value of money - Multiple cash flows | |
| 12 | Time value of money – Applications in project valuation | |
| 13 | Time value of money – Applications in bond valuation | |
| 14 | Time value of money – Applications in stock valuation |
| Resources |
| Meral Sucu, Funda Kul, Finans Matematiği, 2022. |
| Fundamental Methods of Mathematical Economics, 2005, 4. Edition, Alpha C. Chiang, Kevin Wainwright |
Course Contribution to Program Qualifications
| Course Contribution to Program Qualifications | |||||||
| No | Program Qualification | Contribution Level | |||||
| 1 | 2 | 3 | 4 | 5 | |||
| 1 | (S)he describes theoretical knowledge in economics and finance. | X | |||||
| 2 | (S)he explains mathematical and statistical methods needed for economics and finance. | X | |||||
| 3 | (S)he uses at least one computer program utilized for economic and financial analyses (SPSS, Eviews, STATA, R ve MATLAB). | ||||||
| 4 | (S)he has the foreign language proficiency necessary for economics and finance. | ||||||
| 5 | (S)he develops projects in the field and handles team work. | ||||||
| 6 | (S)he develops (her) his awareness of lifetime learning, follows the developments in (her) his field and adopts a critical approach. | ||||||
| 7 | (S)he uses theoretical and practical knowledge on economics and finance. | X | |||||
| 8 | (S)he delivers (her) his opinions by making effective use of modern technologies and of at least one foreign language at a minimum level of level C1. | ||||||
| 9 | (S)he adopts and uses organizational, corporate and social ethical values. | ||||||
| 10 | (S)he adopts principles of social responsibility and acts whenever needed in light of social service sensitivity. | ||||||
| 11 | (S)he analyzes and uses basic knowledge and data regarding different disciplines to conduct inter-disciplinary studies. | ||||||
| 12 | (S)he benefits from (her) his proficiency in economics and finance to make policy suggestions and contribute to the field. | X | |||||
Assessment Methods
| Contribution Level | Absolute Evaluation | |
| Rate of Midterm Exam to Success | 50 | |
| Rate of Final Exam to Success | 50 | |
| Total | 100 | |
| ECTS / Workload Table | ||||||
| Activities | Number of | Duration(Hour) | Total Workload(Hour) | |||
| Course Hours | 14 | 3 | 42 | |||
| Guided Problem Solving | 14 | 2 | 28 | |||
| Resolution of Homework Problems and Submission as a Report | 14 | 1 | 14 | |||
| Term Project | 0 | 0 | 0 | |||
| Presentation of Project / Seminar | 0 | 0 | 0 | |||
| Quiz | 1 | 1 | 1 | |||
| Midterm Exam | 1 | 23 | 23 | |||
| General Exam | 1 | 45 | 45 | |||
| Performance Task, Maintenance Plan | 0 | 0 | 0 | |||
| Total Workload(Hour) | 153 | |||||
| Dersin AKTS Kredisi = Toplam İş Yükü (Saat)/30*=(153/30) | 5 | |||||
| ECTS of the course: 30 hours of work is counted as 1 ECTS credit. | ||||||
Detail Informations of the Course
Course Description
| Course | Code | Semester | T+P (Hour) | Credit | ECTS |
|---|---|---|---|---|---|
| MATHEMATICAL METHODS for ECONOMICS and FINANCE | - | Spring Semester | 3+0 | 3 | 5 |
| Course Program |
| Prerequisites Courses | |
| Recommended Elective Courses |
| Language of Course | English |
| Course Level | First Cycle (Bachelor's Degree) |
| Course Type | Required |
| Course Coordinator | Prof.Dr. Rana ATABAY KUŞÇU |
| Name of Lecturer(s) | Prof.Dr. Mesut KARAKAŞ |
| Assistant(s) | |
| Aim | Acquisition of the basic knowledge and skill of using mathematical methods in modeling economic and financial phenomena in a multivariable framework. |
| Course Content | This course contains; Examples of linear economic models and their solutions using matrix algebra,Partial differentiation and its applications to comparative-static problems,Total differentials, implicit differentiation, implicit function theorem and its applications to comparative-static analysis,Total differentials, implicit differentiation, implicit function theorem and its applications to comparative-static analysis,Unconstrained optimization (multivariable; first- and second-order conditions),Unconstrained optimization (multivariable; first- and second-order conditions),Constrained optimization with equality constraints (multivariable; first- and second-order conditions),Constrained optimization with equality constraints (multivariable; first- and second-order conditions),Constrained optimization with equality constraints (multivariable; first- and second-order conditions),Time value of money – Single cash flow,Time value of money - Multiple cash flows,Time value of money – Applications in project valuation, Time value of money – Applications in bond valuation,Time value of money – Applications in stock valuation. |
| Dersin Öğrenme Kazanımları | Teaching Methods | Assessment Methods |
| 1. Will be able to build simple linear economic models and solve them using matrix algebra. | 16, 6, 9 | A, D |
| 1.1 Explains the logic of building economic and financial models. | ||
| 1.2 Explains the importance of linear economic and financial models. | ||
| 1.3 Solves linear economic and financial models using matrix algebra. | ||
| 2. Will be able to take partial derivatives and apply them to comparative-static problems. | 16, 6, 9 | A, D |
| 2.1 Explains the concept of partial differentiation. | ||
| 2.2 Takes partial derivatives of functions. | ||
| 2.3 Applies partial differentiation to comparative-static problems. | ||
| 3. Will be able to take total differentials, do implicit differentiation, and apply the implicit function theorem to comparative-static analysis. | 16, 6, 9 | A, D |
| 3.1 Takes total derivatives of functions. | ||
| 3.2 Does implicit differentiation. | ||
| 3.3 Explains the implicit function theorem and its significance. | ||
| 3.4 Applies the implicit function theorem to comparative-static analysis. | ||
| 4. Will be able to solve unconstrained optimization problems with more than one variables. | 16, 6, 9 | A, D |
| 4.1 Explain the first-order condition for unconstrained optimization problems with more than one variables. | ||
| 4.2 Explain the second-order condition for unconstrained optimization problems with more than one variables. | ||
| 4.3 Apply the first-order condition and the second order condition to unconstrained optimization problems with more than one variables. | ||
| 5. Will be able to solve constrained multivariate optimization problems with equality constraints. | 16, 6, 9 | A, D |
| 5.1 Explain the first-order condition for constrained optimization problems with more than one variables. | ||
| 5.2 Explain the second-order condition for constrained optimization problems with more than one variables. | ||
| 5.3 Apply the first-order condition and the second order condition to constrained optimization problems with more than one variables. | ||
| 6. Will be able to solve time-value-of-money problems and applied problems of project valuation, bond valuation, and stock valuation. | 16, 6, 9 | A, D |
| 6.1. Does time-value-of-money calculations. | ||
| 6.2. Solves project valuation problems. | ||
| 6.3. Solves bond valuation problems. | ||
| 6.4. Solves stock valuation problems. |
| Teaching Methods: | 16: Question - Answer Technique, 6: Experiential Learning, 9: Lecture Method |
| Assessment Methods: | A: Traditional Written Exam, D: Oral Exam |
Course Outline
| Order | Subjects | Preliminary Work |
|---|---|---|
| 1 | Examples of linear economic models and their solutions using matrix algebra | |
| 2 | Partial differentiation and its applications to comparative-static problems | |
| 3 | Total differentials, implicit differentiation, implicit function theorem and its applications to comparative-static analysis | |
| 4 | Total differentials, implicit differentiation, implicit function theorem and its applications to comparative-static analysis | |
| 5 | Unconstrained optimization (multivariable; first- and second-order conditions) | |
| 6 | Unconstrained optimization (multivariable; first- and second-order conditions) | |
| 7 | Constrained optimization with equality constraints (multivariable; first- and second-order conditions) | |
| 8 | Constrained optimization with equality constraints (multivariable; first- and second-order conditions) | |
| 9 | Constrained optimization with equality constraints (multivariable; first- and second-order conditions) | |
| 10 | Time value of money – Single cash flow | |
| 11 | Time value of money - Multiple cash flows | |
| 12 | Time value of money – Applications in project valuation | |
| 13 | Time value of money – Applications in bond valuation | |
| 14 | Time value of money – Applications in stock valuation |
| Resources |
| Meral Sucu, Funda Kul, Finans Matematiği, 2022. |
| Fundamental Methods of Mathematical Economics, 2005, 4. Edition, Alpha C. Chiang, Kevin Wainwright |
Course Contribution to Program Qualifications
| Course Contribution to Program Qualifications | |||||||
| No | Program Qualification | Contribution Level | |||||
| 1 | 2 | 3 | 4 | 5 | |||
| 1 | (S)he describes theoretical knowledge in economics and finance. | X | |||||
| 2 | (S)he explains mathematical and statistical methods needed for economics and finance. | X | |||||
| 3 | (S)he uses at least one computer program utilized for economic and financial analyses (SPSS, Eviews, STATA, R ve MATLAB). | ||||||
| 4 | (S)he has the foreign language proficiency necessary for economics and finance. | ||||||
| 5 | (S)he develops projects in the field and handles team work. | ||||||
| 6 | (S)he develops (her) his awareness of lifetime learning, follows the developments in (her) his field and adopts a critical approach. | ||||||
| 7 | (S)he uses theoretical and practical knowledge on economics and finance. | X | |||||
| 8 | (S)he delivers (her) his opinions by making effective use of modern technologies and of at least one foreign language at a minimum level of level C1. | ||||||
| 9 | (S)he adopts and uses organizational, corporate and social ethical values. | ||||||
| 10 | (S)he adopts principles of social responsibility and acts whenever needed in light of social service sensitivity. | ||||||
| 11 | (S)he analyzes and uses basic knowledge and data regarding different disciplines to conduct inter-disciplinary studies. | ||||||
| 12 | (S)he benefits from (her) his proficiency in economics and finance to make policy suggestions and contribute to the field. | X | |||||
Assessment Methods
| Contribution Level | Absolute Evaluation | |
| Rate of Midterm Exam to Success | 50 | |
| Rate of Final Exam to Success | 50 | |
| Total | 100 | |