The purpose of this course is twofold:

First, it gives an introduction into methods of modelling economic dynamics and its numerical implementation (including linear and nonlinear difference and differential equations, stability analysis of equilibrium points, bifurcation diagrams).

Second, it discusses the application of these models to various fields in economics. These fields shall be adjusted to the background and interest of the participants. A preliminary lists includes applications in:

• International economics: New economic geography, foreign exchange markets, foreign direct investments
• Macroeconomics: endogenous cycles in macromodels with financial frictions; expectation formation and learning in new keynesian macromodels

There exists also applications in microeconomics and industrial organization (including in particular models of financial markets)

For the numeric implementation and simulation study the following software will be used: E&F Chaos (free download on the Website of CeNDEF, the Center for Nonlinear Dynamics in Economics and Finance of the University of Amsterdam)

After the course, students shall be familiar with important methods for modelling economic dynamics and with its numerical implementation. They shall be familiar with their application to various fields in (international) economics and they shall be able to use them in their own research projects.

You may miss two meetings.

First part (before the easter break): lecture course for introducing the methods

Second part: presentation and discussion of research papers

Third part: students' presentation of own research project

active participation in class room discussions: 20%

written paper: model outline + documentation of simulation results: 45%

oral presentation: 20%

acting as discussant: 15%

Typically, I am available after the course meetings; alternatively, fix an appointment via E-Mail: ingrid.kubin@wu.ac.at