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Course Description Course Name : Mathematical Economics 2 Course Code : EM 316 Course Type : Compulsory Level of Course : First Cycle Year of Study : 3 Course Semester : Spring (16 Weeks) ECTS : 6 Name of Lecturer(s) : Asst.Prof.Dr. KENAN LOPÇU Asst.Prof.Dr. CEVAT BİLGİN Learning Outcomes of the Course : Acquires the essentials of macroeconomic analysis and the mathematical techniques used. Performs the comparative static analysis of basic macroeconomic models. Learns the basic distinguishing features of dynamic macroeconomic models. Understands the dynamic analysis of basic rational expectations models. Becomes familiar with the basic analysis of main growth models. Acquires the ability to interpret the solutions obtained economically. Gains an introductory exposure to the main quantitative techniques (econometrics) used in the empirical analysis of macroeconomic activity and long term growth. Mode of Delivery : Face-to-Face Prerequisites and Co-Prerequisites : None Recommended Optional Programme Components : None Aim(s) of Course : This course is the second part of a two semester sequence designed to provide students with analytical tools and the quantitative techniques of economic analysis. The focus will be largely on the macroeconomic analysis for this semester. To acquire effectively the information presented in class, students who are taking this class are expected to have basic knowledge of calculus (IEM 125-126), linear algebra (IEM 205), macroeconomics (IEC 203-204) and statistics (EM 103-104).The course will present an integrated approach to development of a general equilibrium macroeconomic model of the economy consisting of labor market, commodity market, and money market. We will investigate the response of key macro variables such as output, employment, real wage, inflation and interest rate to exogenous shocks and the role of monetary and fiscal policy under alternative assumptions about expectations. The course will also examine the basic developments in growth theories and provide an introduction to optimal control theory. Course Contents : Subject Matters and Methodology: Review of basic concepts, tools and recent developments in macroeconomics; Static Macroeconomic Models and Comparative static Analysis; Introduction to Dynamic Analysis; Rational Expectations and Alternative Theories of Economic Activity; Introduction to Optimal Control and Basic Growth Models Final examination Language of Instruction : Turkish Work Place : Classroom   Course Outline /Schedule (Weekly) Planned Learning Activities Week Subject Student's Preliminary Work Learning Activities and Teaching Methods 1 Subject Matters and Methodology Readings and problem set Lecture 2 Subject Matters and Methodology Readings and problem set Lecture 3 Subject Matters and Methodology Readings and problem set Lecture and problem session 4 Static Macroeconomic Models and Comparative static Analysis Readings and problem set Lecture 5 Static Macroeconomic Models and Comparative static Analysis Readings and problem set Lecture and problem session 6 Introduction to Dynamic Analysis Readings and problem set Lecture 7 Introduction to Dynamic Analysis Readings and problem set Lecture and problem session 8 Midterm Exam 9 Adaptive Expectations and the Cagan Model Readings and problem set Lecture 10 Adaptive Expectations and the Cagan Model Readings and problem set Lecture and problem session 11 Rational Expectations: Properties and Solution Methods Readings and problem set Lecture and problem session 12 Alternative Theories of Macroeconomic Fluctuations Readings and problem set Lecture 13 Alternative Theories of Macroeconomic Fluctuations Readings and problem set Lecture and problem session 14 Introduction to Optimal Control and Basic Growth Models Readings and problem set Lecture 15 Introduction to Optimal Control and Basic Growth Models Readings and problem set Lecture and problem session 16/17 Final Exam   Required Course Resources Resource Type Resource Name Recommended Course Material(s)  Lecture Notes  Frederic S. Mishkin, The Economics of Money Banking and Financial Markets, 8th edition, Addison Wesley, 2006 (Chapters: 20-25).  Bennett T. McCallum, Monetary Economics, Theory and Policy, Macmillan, New York, 1989.  Alpha C. Chiang and Kevin Wainwright, Fundamental Methods of Mathematical Economics, 4th Edition, McGraw-Hill, 2005. Required Course Material(s)   Assessment Methods and Assessment Criteria Semester/Year Assessments Number Contribution Percentage     Mid-term Exams (Written, Oral, etc.) 1 40     Homeworks/Projects/Others 6 60 Total 100 Rate of Semester/Year Assessments to Success 40   Final Assessments 100 Rate of Final Assessments to Success 60 Total 100   Contribution of the Course to Key Learning Outcomes # Key Learning Outcome Contribution* 1 Models problems with Mathematics, Statistics, and Econometrics 5 2 Explains Econometric concepts 3 3 Estimates the model consistently and analyzes & interprets its results 4 4 Acquires basic Mathematics, Statistics and Operation Research concepts 5 5 Equipped with the foundations of Economics, and develops Economic models 5 6 Describes the necessary concepts of Business 3 7 Acquires the ability to analyze, benchmark, evaluate and interpret at conceptual levels to develop solutions to problems 5 8 Collects, edits, and analyzes data 3 9 Uses a package program of Econometrics, Statistics, and Operation Research 2 10 Effectively works, take responsibility, and the leadership individually or as a member of a team 4 11 Awareness towards life-long learning and follow-up of the new information and knowledge in the field of study 5 12 Develops the ability of using different resources in the form of academic rules, synthesis the information gathered, and effective presentation in an area which has not been studied 5 13 Uses Turkish and at least one other foreign language, academically and in the business context 5 14 Good understanding, interpretation, efficient written and oral expression of the people involved 3 15 Questions traditional approaches and their implementation while developing alternative study programs when required 4 16 Recognizes and implements social, scientific, and professional ethic values 3 17 Follows actuality, and interprets the data about economic and social events 3 18 Improves himself/herself constantly by defining educational requirements considering interests and talents in scientific, cultural, art and social fields besides career development 3 * Contribution levels are between 0 (not) and 5 (maximum).   Student Workload - ECTS Works Number Time (Hour) Total Workload (Hour) Course Related Works     Class Time (Exam weeks are excluded) 14 3 42     Out of Class Study (Preliminary Work, Practice) 14 4 56 Assesment Related Works     Homeworks, Projects, Others 6 6 36     Mid-term Exams (Written, Oral, etc.) 1 5 5     Final Exam 1 5 5 Total Workload: 144 Total Workload / 25 (h): 5.76 ECTS Credit: 6