363-0541-00L Economic Dynamics and Complexity
| Semester | Autumn Semester 2023 |
| Lecturers | F. Schweitzer |
| Periodicity | yearly recurring course |
| Language of instruction | English |
Courses
| Number | Title | Hours | Lecturers | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 363-0541-00 G | Economic Dynamics and Complexity Lecture: Tuesday, 10-12 h Exercises: Tuesday, 12-13 h | 3 hrs |
| F. Schweitzer |
Catalogue data
| Abstract | What causes economic business cycles? How are limited resources, competition, and cooperation reflected in growth dynamics? To answer such questions, we combine macroeconomic models and methods of nonlinear dynamics. We study the role of bifurcations and control parameters for dynamic stability. Feedback cycles and coupled dynamics are reasons for limited predictability, instability and chaos. | ||||||||||||||||||||||||||||||
| Learning objective | successful participant of the course is able to: - understand the importance of different modeling approaches - formalize and solve one- and two-dimensional nonlinear models - identify critical conditions for stability and dynamic transitions - analyze macroeconomic models of business cycles, supply and demand - apply formal concepts to model economic growth and competition | ||||||||||||||||||||||||||||||
| Content | System theory sees the economy as a complex adaptive system. What does this mean for economic modeling? We focus on two sources of complexity: (a) nonlinear dynamics, which is captured in this course, "Economic Dynamics and Complexity" and (b) collective interactions, which is captured in the course "Agent-Based Modeling of Economic Systems" (in Spring). Our approach to economic dynamics combines insights from different disciplines: macroeconomics studying business cycles and growth, system dynamics rooted general system theory and cybernetics, and nonlinear dynamics using applied mathematics. We start with a comparison of different modeling approaches, to highlight the problems and challenges of system modeling. The subsequent lectures then introduce different one- and two-dimensional nonlinear models with applications in economics, such as models of supply and demand, business cycles, growth and competition. Emphasis is on the formal analysis of these models using methods from applied mathematics and tools for solving coupled differential equations. Weekly self-study tasks are used to apply the concepts introduced in the lectures. We practice how to solve nonlinear models formally and numerically and how to interpret the results. | ||||||||||||||||||||||||||||||
| Lecture notes | The lecture slides are provided as handouts - including notes and literature sources - to registered students only. All material is to be found on the Moodle platform. More details during the first lecture. | ||||||||||||||||||||||||||||||
| Prerequisites / Notice | Students should be familar with nonlinear differential equations and should have basic programming skills. All necessary details to solve nonlinear models will be provided in the course. The course will not build on mathematical proofs, optimization, statistics, efficient numerical computation and other specialized skills. | ||||||||||||||||||||||||||||||
Competencies |
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Performance assessment
| Performance assessment information (valid until the course unit is held again) | |
Performance assessment as a semester course | |
| ECTS credits | 3 credits |
| Examiners | F. Schweitzer |
| Type | end-of-semester examination |
| Language of examination | English |
| Repetition | A repetition date will be offered in the first two weeks of the semester immediately consecutive. |
| Mode of examination | written 90 minutes |
| Additional information on mode of examination | The end-of-semester examination will account for 70% of the grade.The self-study tasks contribute to the compulsory continuous performance assessment (obligatorisches Leistungselement) and account for 30% to the final grade. The Leistungselement contains several modules: one obligatory self-study tasks (self-assessment, pass/fail), one group activity (one out of 3 group exercises, 15% of grade), and one individual submission (one out of 6 individual exercises, 15% of grade). Students will also be required to submit peer feedback about self-study solutions of other students (4 feedback submissions in total). The 30% Leistungselement is conditional on the pass/fail self-assessment exercise and the four feedback submissions. |
| Written aids | None |
| Digital exam | The exam takes place on devices provided by ETH Zurich. |
| Distance examination | It is not possible to take a distance examination. |
Learning materials
| No public learning materials available. | |
| Only public learning materials are listed. |
Groups
| No information on groups available. |
Restrictions
| There are no additional restrictions for the registration. |