Courses Bachelor Display 2015-2016

Course Description To PDF
Course title Quantitative Methods III (IES)
Course code EBC2011
ECTS credits 6,5
Assessment Whole/Half Grades
Period
Period Start End Mon Tue Wed Thu Fri
1 31-8-2015 23-10-2015 L X/E X/E
Level Intermediate
Coordinator Hans de Graaff
For more information: h.degraaff@maastrichtuniversity.nl
Language of instruction English
Goals
Learn advanced optimisation techniques and apply them to economic problems.
Understand the concept of integral and learn some integration techniques.
Learn how to solve some simple discrete as well as continuous dynamic systems and to analyse equilibrium points.
Learn advanced multiple regression techniques.
Learn some univariate as well as multivariate time series techniques.
Apply multiple regression and time series techniques to economic problems using statistical software.
Description
The course QM3 is a continuation of the first year Economics course QM2 and contains mathematical and statistical subjects.
The mathematics part will summarize and complete the subject-matter concerning static optimisation of functions. Additional techniques will be considered to optimize a nonlinear function with inequality constraints. Besides, we will study the subject of dynamic systems. Here, functions and relations depend on the time variable. In mathematics the basic elements of dynamics are difference and differential equations, which will be introduced. Applications can be found in macro-economics and the theory of economic growth. Closely related to differential equations are integrals, to which we will pay some attention as well.

The statistics part of QM3 digs deeper into the regression model, already introduced in QM2. We will provide a more formal treatment of the regression model, while also introduce a number of new topics, including the problem of omitted variables bias, the testing of general linear parameter restrictions, and the large-sample (asymptotic) properties of regression. Most attention is devoted to the analysis of cross-section data. At the end, we will briefly discuss the analysis of time-series data, which involves a number of new and thorny problems. Unlike in QM2 where we studied assignments based on given Excel output, the emphasis will now be on active empirical assignments. You will generate empirical results by yourself, using the statistical package Eviews, which is used extensively in the economics profession and offers a wealth of features not available in Excel.
Literature
Mathematics:
Sydsæter, Knut, and P. Hammond (2012), Essential Mathematics for Economic Analysis, 4th ed. Pearson Education, Harlow.
Vermeulen, D. and H. de Graaff, Syllabus Dynamic Models.
Statistics:
Jeffrey M. Wooldridge (2013), Introductory Econometrics: a modern approach, 5th ed., Thomson South-Western. ISBN : 9781111534394 (also as eBook, see www.cengagebrain.co.uk).
Prerequisites
The courses Quantitative Methods I (EBC1005/1006/1007) and Quantitative Methods II (EBC 1033/1034/1035), taught at the University of Maastricht. In particular the following subjects should have been mastered:
Mathematics: exponential and logarithmic functions, (partial) derivative and rules a.o. chain rule, optimisation of functions of one and two variables, Lagrange.
Statistics: random variable, probability distributions, confidence interval, hypothesis testing, linear regression.
An advanced level of English.
Teaching methods (indicative; course manual is definitive) PBL / Lecture / Assignment
Assessment methods (indicative; course manual is definitive) Participation / Written Exam
Evaluation in previous academic year For the complete evaluation of this course please click "here"
This course belongs to the following programmes / specialisations
Bachelor Economics and Business Economics Specialisation Economics Year 2 Compulsory Courses
Bachelor Economics and Business Economics Specialisation Emerging Markets Year 2 Elective Courses
Bachelor Economics and Business Economics Specialisation Economics and Management of Information QE Electives
SBE Exchange Bachelor Bachelor Exchange Courses
SBE Exchange Master Bachelor Exchange Courses
SBE Non Degree Courses Bachelor Courses