Computational Economics
Computational Economics
Aim:
The goal of the course is to introduce students to state of the art computational techniques for quantitative economic research. Using the programming language FORTRAN they learn to apply numerical solution techniques to mathematical problems and economic models that cannot be solved analytically. In the following, I will explain the course content, structure and timeline, the course material, as well as requirements to complete the course successfully.
Students need to bring their own computer to lectures and exercise classes. We encourage you to download the free programming language FORTRAN and other material from our website
on your computer before classes start. In case of problems, we will help you with the installation in the first class of the course. You will learn to write code and solve simple numerical exercises in FORTRAN. On this basis we can study the theoretical structure of various economic models and implement these models in FORTRAN.
Examination:
You will have to prepare an assignment in which you will write code in FORTRAN in a team of no more than two members. On the last day of the course, you will have to solve a programming exam on your own. In this exam, you will be given a FORTRAN code containing a number of programming errors. You have to correct these errors and run the programme. Both the programming exercise and the team assignment are marked. The average of the two marks will be your final mark. However, you must pass both tests to complete the course successfully.
Time schedule for classes:
The lecture starts on Wednesday 16 October from 12.30 - 14.00 in room 319 and it will be held weekly. The exercise class starts on Monday 21 October from 14.00 - 16.00 in room 226.
Each student will receive a set of Lecture Notes free of charge in the first lecture. The material there can (and should) be studied before attending the respective lectures.
Detailed course plan:
Introduction to programming with Fortran 90
Numerical solution methods: Nonlinear equation systems and function minimization
The static general equilibrium model
The life-cycle model and intertemporal choice
The overlapping generations model: Long-run equilibrium and transitional dynamics
More information, advanced study or preparation:
In case you need more information, want to prepare in advance or study additional material, you can consult selected chapters of the following book, which you can find in the library:
Hans Fehr and Fabian Kindermann (2018): Introduction to computational economics using Fortran, Oxford: Oxford University Press.
