## Courses NonDegree Display 2022-2023

Course Description To PDF
Course title Quantitative Methods III (IES)
Course code EBC2011
ECTS credits 6,5
Period
Period Start End Mon Tue Wed Thu Fri
1 5-9-2022 21-10-2022 L X X
Level Intermediate
Coordinator Bas Dietzenbacher
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 some univariate as well as multivariate time series techniques.
Apply multiple regression and time series techniques to economic problems using statistical software.
Description
PLEASE NOTE THAT THE INFORMATION ABOUT THE TEACHING AND ASSESSMENT METHOD(S) USED IN THIS COURSE IS WITH RESERVATION. A RE-EMERGENCE OF THE CORONAVIRUS AND NEW COUNTERMEASURES BY THE DUTCH GOVERNMENT MIGHT FORCE COORDINATORS TO CHANGE THE TEACHING AND ASSESSMENT METHODS USED. THE MOST UP-TO-DATE INFORMATION ABOUT THE TEACHING/ASSESSMENT METHOD(S) WILL BE AVAILABLE IN THE COURSE SYLLABUS.

The course QM3 is a continuation of the first year Economics courses QM1 and QM2 and is divided in a mathematics part and a statistics part. The mathematics part consists of three topics: Optimization, Integration, and Dynamic Models. Optimization considers unconstrained and constrained optimization of univariate and multivariate functions (Lagrange, Kuhn-Tucker). Integration covers elementary and advanced integration techniques for univariate functions (integration by parts, integration by substitution, improper integrals). Dynamic Models provides an introduction to discrete dynamics (difference equations) and continuous dynamics (differential equations) including equilibrium analysis. Each topic has a separate reader. The statistics part formally studies the regression model, including the problem of omitted variables bias, the testing of general linear parameter restrictions, and the large-sample (asymptotic) properties of regression. The focus is on the analysis of cross-section data; time-series data is briefly discussed at the end. Using the statistical package Eviews, empirical results are generated by yourself. This part is based on the following textbook. Jeffrey M. Wooldridge (2018). Introductory Econometrics: a modern approach. 7th international student edition, Thomson South-Western, Cengage Learning.
Literature
Jeffrey M. Wooldridge (2018). Introductory Econometrics: a modern approach. 7th international student edition, Thomson South-Western, Cengage Learning.
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.