Monash University Handbook 2011 Postgraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.

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:

1. understand the theories of static optimisation, including the first and second order conditions for the multi-dimensional case
2. analyse mathematically how changes in the economic environment affect economic agents' optimal decisions
3. analyse dynamic optimisation problems faced by economic agents
4. 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