ECON 501: QUANTITATIVE METHODS FOR ECONOMISTS
FALL 2015
Professor: Bob Kling, C 305 Clark, email Robert.Kling@ColoState.edu .
Office Hours: 9:30-10:30 TR, 1:00-2:00 MW, and by appointment at other times
No office hours on days when no class is held
Grading Assistant: Anil Bolukoglu, C 314 Clark, Anil.Bolukoglu@ColoState.edu
Office Hours: 9:30-10:00 MW and by appointment at other times
COURSE OBJECTIVES
This course presents mathematical methods that are essential for graduate students in economics to be able to successfully
master the theory courses in microeconomics, macroeconomics, and econometrics. It presumes a first course in calculus
(including optimization of functions of one variable) and other general math competency. It covers essential material in
matrix algebra, set topology, multivariable calculus, unconstrained and constrained optimization, and ordinary differential
equations. By the end of the course, you should be able to:
< define and understand a broad menu of math concepts relevant to economic analysis,
< solve a variety of math problems common in economic modeling,
< work with numerous applications of mathematical methods in economics,
< independently determine appropriate math methods to apply to economic modeling problems that may arise.
To these ends, the course will include:
< presentation of key quantitative methods via classroom lecture and a formal textbook,
< plenty of examples of how math methods are usefully applied to economic questions,
< problem sets to give you an opportunity to exercise your analytical abilities,
< exams to demonstrate your development in a formal structure.
COURSE OUTLINE
Note: This class is officially scheduled for 8 weeks, 24 August to 15 October, but to lessen the crush we will stretch
it partly into a 9th and 10th week. Generally the class meets Monday through Thursday, but with some exceptions in
order to extend the end date and have the last test be on Monday 26 October.
Textbook:
Simon and Blume, Mathematics for Economists (Norton, 1994)
Weeks
Topics
1
Linear algebra
A.
Systems of linear equations
B.
Matrix algebra and determinants
Spaces and sets
C.
Points, vectors, lines and planes
D.
Characterizing sets in real space
Multivariable calculus
E.
Functions of several variables
F.
Calculus of several variables
Optimization
G.
Quadratic forms and definite matrices
H.
Unconstrained optimization
I.
Constrained optimization
J.
Characterizing functions
Additional topics as time allows
K.
Duality
L.
Risk and Return
M.
Ordinary differential equations
Last test
2-3
3-4
5-8
8-9
10
Readings in
Simon & Blume
Tentative test dates
Chs 6 and 7
Chs 8, 9, and 26
Chs 10 and 11
Ch 12
Thu 17 Sep (A to D)
Ch 13
Chs 14 and 15
Ch 16
Ch 17
Chs 18 and 19
Chs 20 and 21
Mon 12 Oct (E to H)
Ch 22 secs 22.1 and 22.2
Ch 30 sec 30.2
Ch 24
Mon 26 Oct (I to M)
ACADEMIC INTEGRITY
This course will be administered consistent with the Academic Integrity Policy of the Colorado State University
General Catalog and the Student Conduct Code. Student conduct must adhere to the policy, and so will instructor
response to any incidents that arise. See http://tilt.colostate.edu/integrity/faqs/what_are_the_rules.cfm .
Every submitted piece of work is subject to the following Honor Pledge:
"I have not given, received, or used any unauthorized assistance."
POLITENESS
University regulations require this syllabus to ask you to be polite in class. We hope this is unnecessary to
mention in a graduate class, but it does imply that you avoid arriving late to class.
GRADES
Course grades will be based on the following:
Tests:
(3 exams) x (20 percent each) = 60 percent
< Each test, including Test 3, is a unit test which will focus on the material for that part of the course, and
will be comprehensive only to the degree that the current topics naturally use earlier topics as foundational material.
< A detailed topic outline will be provided for each test.
< Tests will involve a mix of short answer (for example, definition) and long answer questions.
Problem sets:
(8 problem sets) x (5 percent each) = 40 percent
< Problem sets will be scored on a 5-point basis as follows:
5 = Thorough, diligent, and mostly correct
4 = Thorough and diligent, with mistakes but overall display of understanding
3 = Thorough and/or diligent, but with important misunderstandings
2 = Pervasive misunderstandings and/or major omissions
1 = Minimal or no effort
< Collaboration on problem sets is allowed, but pure copying certainly is not. The answers you submit
must be your own presentation, and must reflect an understanding you have established in your own
head, even if the understanding is based on collaboration with colleagues. If you work with a colleague,
please make a note on each homework paper about whom you worked with.
The overall letter grade for the course is expected to be determined according to the following scale:
95 - 100% A+
80 - 84% B+
60 - 69% C+
0 - 39%
90 - 94% A
75 - 80% B
50 - 59% C
85 - 89% A–
70 - 74% B–
40 - 49% D
KEY DATES
Summary of tentative test dates (subject to change):
Test 1:
Test 2:
Test 3:
Thu 17 Sep Topics ABCD
Mon 12 Oct Topics EFGH
Mon 26 Oct Topics IJKLM
See also the full calendar provided separately.
Anticipated homework schedule:
Distributed
Due back
HW 1: Mon 24 Aug
Mon 31 Aug
HW 2: Mon 31 Aug
Tue 8 Sep
HW 3: Tue 8 Sep
Tue 15 Sep
HW 4: Tue 15 Sep
Thu 24 Sep
HW 5: Thu 24 Sep
Wed 30 Sep
HW 6: Wed 30 Sep
Wed 7 Oct
HW 7: Wed 7 Oct
Thu 15 Oct
HW 8: Thu 15 Oct
Wed 21 Oct
F