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Terminated in academic year 2021/2022

Linear Differential and Difference Equations in Economics

Type of study BachelorFollow-up Master
Language of instruction Czech
Code 151-0310/02
Abbreviation LDDRE
Course title Linear Differential and Difference Equations in Economics
Credits 4
Coordinating department Department of Mathematical Methods in Economics
Course coordinator PaedDr. Renata Majovská, PhD.

Subject syllabus

1. Economic models and economic reality:
- characteristics of economic model, static and dynamic equilibrium model,
- optimization and equilibrium,
- derivatives and continuous model,
- deference and discrete model.
2. Time delay in economic models:
- importance and influence of time delay,
- continuous and discrete time delay.
3. Basic Differential and difference equations and their solution.
4. Market models:
- Cobweb model,
- market model with inventory.
5. Differential and difference equations in macroeconomics:
- Growth models,
- dynamic multiplier model continuous and discrete.
6. Second order differential equations with constant coefficients in macroeconomics:
- Phillips Multiplier-Acceleration model,
- validation of Multiplier model on time series ARAD.

Literature

Gandolfo, G. Economic Dynamics. Springer, 4th ed., 2009, XXVIII, 749 p., ISBN: 978-3-642-03862-4 .
Fiala, P. Úvod do kvantitativní ekonomie. VŠE, Praha 2000, ISBN 80-245-0133-3 .

Advised literature

Klein, M. Mathematical Methods for Economics. Addison Wesley, 2nd ed., 2002, ISBN 0-201-72626-0 .