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Decision and choices
- Corsi di laurea:
- MEFI - Industrial Economics and Policy
- Docenti:
- Caprari Elisa
- Anno accademico:
- 2011/2012
- Codice corso:
- 503413
- Decreto Ministeriale:
- 270/04
- Periodo:
- II semestre
- Modalità di verifica:
- Prova scritta
Lecturer: Elena Molho (1° modulo) molhoe@eco.unipv.it
Elisa Caprari (2° modulo) elisa.caprari@eco.unipv.it
Prerequisites: None
Didactic method: Front lessons
Educational aim:
The course will offer an organic overview of some classical instruments used in economic and financial models to develop a rational choice theory.
The methodological part will be followed by applications to economic and financial models.
Moduli
- Modulo:
- 1° modulo
- Crediti formativi:
- 9
Programma
- 1) DECISIONS UNDER RISK (3 CFU)
Utility and preference representation; Decisions under risk; Von Neumann-Morgenstern model, Absolute and relative risk aversion. Hints on modern approaches to decision theory.
- 2) LINEAR MODELS WITH APPLICATIONS TO ECONOMICS AND FINANCE (3 CFU)
Matrices and partitioned matrices: basic calculus rules. Linear functions and linear systems: a review. Quadratic forms. Eigenvalues and eigenvectors. Diagonalization of a quadratic form. Applications to models in economics and finance.
3) OPTIMIZATION MODELS WITH APPLICATIONS TO ECONOMICS AND FINANCE (3 CFU)
Functions of many variables: calculus rules. Optimization models without constraints. Implicit functions and comparative statics. Constrained optimization and Lagrange multipliers. Applications to models in economics and finance.
For the 6 ECTS course (available from Academic Year 2012/13), only 1) and 2).
Bibliografia
C. P. Simon and L. Blume, Mathematics for economists , New York ; London : Norton, 1994.
Further readings.
- Modulo:
- 2° modulo
- Docente:
- Caprari Elisa
- Crediti formativi:
- 9
Programma
- 1) DECISIONS UNDER RISK (3 CFU)
Utility and preference representation; Decisions under risk; Von Neumann-Morgenstern model, Absolute and relative risk aversion. Hints on modern approaches to decision theory.
- 2) LINEAR MODELS WITH APPLICATIONS TO ECONOMICS AND FINANCE (3 CFU)
Matrices and partitioned matrices: basic calculus rules. Linear functions and linear systems: a review. Quadratic forms. Eigenvalues and eigenvectors. Diagonalization of a quadratic form. Applications to models in economics and finance.
3) OPTIMIZATION MODELS WITH APPLICATIONS TO ECONOMICS AND FINANCE (3 CFU)
Functions of many variables: calculus rules. Optimization models without constraints. Implicit functions and comparative statics. Constrained optimization and Lagrange multipliers. Applications to models in economics and finance.
For the 6 ECTS course (available from Academic Year 2012/13), only 1) and 2).
Bibliografia
C. P. Simon and L. Blume, Mathematics for economists , New York ; London : Norton, 1994.
Further readings.
Credits: apnetwork.it