MATHEMATICAL METHODS FOR FINANCE

MATHEMATICAL METHODS FOR FINANCE

Fausto Gozzi

Obiettivi formativi

1) To learn some basic methods in Linear Algebra, Linear and Nonlinear Dynamical Systems, Static Optimization. These are essential tools to understand and develop mathematical models in economics. 2)To be able to understand mathematical models and to develop them in simple cases

Risultati di apprendimento attesi

1) Knowledge and understanding: The course will offer the basic theoretical tools of Linear Algebra, Dynamical Systems, Optimization. These are key tools to understand and develop mathematical models in economics. 2) Applying knowledge and understanding: The students will be taught how to use the above basic tools to develop simple mathematical models of real phenomena such as: - population and investment dynamics; - climate change; - ranking of web pages; - economic dynamics; 3) Making judgements: We expect students to be able to - understand the main mathematical features of basic economic models; - judge the reliability of information on quantitative modeling that they read in the press; - build simple mathematical models of real phenomena. 4) Communications Skills: This course will give the students the possibility to acquire and understand major terms and concepts in order to communicate their ideas, proposals, analysis and critical reasoning in the field of mathematical modeling in the most effective and appropriate way. 5) Learning skills: This course will contribute to empower learners giving them the tools to evaluate the statements on quantitative mathematical modeling (that they can read in the press or in specialized journals) in an independent way.

Contenuti Del Corso

- Review of calculus of Several Variables - Implicit Functions and Comparative Statics - Unconstrained Optimizazion - Constrained Optimization - Eigenvalues and eigenvectors, - Spectral decomposition - Linear/Nonlinear Difference/Differential Equations and Systems - Use of the above techniques to build mathematical models of real phenomena.

Testi Di Riferimento

1) MATEMATICS FOR ECONOMISTS Carl Simon e Lawrence Blume W.W. NORTON & COMPANY. 2) Notes given by the teacher.

Metodologie Didattiche

Lessons and Exercises sessions. “Teaching is not transferring knowledge, but creating the conditions for its production or construction”

Modalità di verifica dell'apprendimento

50% during the course: 28 September, 19 october, 16 November 50% final exam: written and oral

Criteri per l’assegnazione dell’elaborato finale

Interview