Monash University Handbook 2010 Postgraduate - Unit

Synopsis

Mathematical preliminaries; static optimisation theory; introduction to calculus of variations and optimal control theory; necessary and sufficient conditions; investment theory: costs of adjustment, neoclassical, Q theory; consumption theory; use of duality theory; growth models; Hamilton Jacobi theory; discrete time stochastic models; selected current applications.

Objectives

The learning goals associated with this unit are to:

• understand the theories of static optimisation, including the first and second order conditions for the multi-dimensional case
• analyse mathematically how changes in the economic environment affect economic agents' optimal decisions
• analyse dynamic optimisation problems faced by economic agents
• develop students' ability to access frontier research in economics that routinely makes use of many mathematical concepts in optimisation theories.

Assessment

Within semester assessment: 40%
Examination (3 hours): 60%

Chief examiner(s)

Birendra Rai

Contact hours

3 hours per week