ECON2125/6012

Course title: Optimisation for Economics and Financial Economics

Lectures and assessments

Week	Date	Topic	Notes
1	Feb 20	📖 Introduction: optimization in economics 📖 Logic and proofs
2		🔬 Problem set alpha
	Feb 27	📖 Univariate and bivariate optimization
3		🔬 Problem set beta
	March 5	📖 Revision of set theory 📖 Mappings and cardinality
4		🔬 Problem set gamma
	March 11	Quiz 1 (3%) link	20min, computerized
	March 12	📖 Sequences, limits and continuity 📖 Fundamentals of optimization
5		🔬 Problem set delta
	March 19	📖 Matrices and matrix arithmetic 📖 Multivariate calculus
6		🔬 Problem set epsilon
	March 25	Quiz 2 (3%) link	20min, computerized
	March 26	📖 Vector spaces and linear operators
		Teaching break	2 weeks
7		🔬 Problem set zeta
	April 15	Midterm exam (35%) 🛟 Practice problems	1h, invigilated
	April 16	📖 Eigenpairs and diagonalization 📖 Quadratic forms
8		🔬 Problem set eta
	April 22	Quiz 3 (3%) link	20min, computerized
	April 23	📖 Unconstrained optimization 📖 Convexity and uniqueness
9		🔬 Problem set theta
	April 30	📖 Constrained optimization 📖 Kuhn-Tucker conditions
10		🔬 Problem set iota
	May 6	Quiz 4 (3%) link	20min, computerized
	May 7	📖 Maximum theorem 📖 Envelope theorem
11		🔬 Problem set kappa
	May 14	📖 Dynamic optimization
12		🔬 Consultation hours
	May 20	Quiz 5 (3%) link	20min, computerized
	May 21	📖 Revision
		Final exam (55%)	3h, invigilated

Course web pages

Class summary ECON2125 ECON6012

• Official course description

Course Wattle page

• Announcements

• Recordings

• Assessments

• Grades

optim.iskh.me

• sufficient lecture notes

• downloadable as markdown or pdf

• GitHub based

• submit issues and typos through the provided button

• Latest version of the notes a day before the lecture

• check for the updates in the morning

Course convener and lecturer

Professor Fedor Iskhakov

• Office: 1021 HW Arndt Building

• Email: fedor.iskhakov@anu.edu.au

• Web: fedor.iskh.me

• Office hours: Monday 09:30 to 11:00 during teaching weeks updated

I’m an applied micro-econometrician and a computational economist working in the field of structural estimation of dynamic models of individual and strategic choice, with applications to labor economics, public economics, durable goods markets, household finance, applied industrial organization and dynamic games.

Tutoring team

Wending Liu

• Email: Wending.Liu@.anu.edu.au

• Web: Personal page

• Room: Room 2084, Copland Bld (24)

• Office hours: Wednesday 4pm to 6pm

Fajar Oktiyanto

• Email: Fajar.Oktiyanto@anu.edu.au

• Web: Personal page

• Room: 2115, Copland Bld (24) updated

• Office hours: Monday 2pm to 4pm

Lecture times

• Lectures: Tuesday 15:00 — 17:00

• Location: Roomm G31, Copland Bldg 24

• Room has \(\approx\) 100 seats

• Echo-360 recordings on Wattle

• Face-to-face is strictly preferred

Tutorial times

• 8 tutorials during the week

• see schedule for https://mytimetable.anu.edu.au/even/timetable

• search for ECON2125 or ECON6012 and select 2024 semester 1

• register for your selected tutorial at Wattle page

Day	From	To	Room	Tutor
Monday	16:00	17:00	Tutorial Room 1, HW Arndt Bldg 25A	Fajar
Monday	17:00	18:00	Tutorial Room 1, HW Arndt Bldg 25A	Fajar
Wednesday	9:00	10:00	Lecture Theatre 1, HW Arndt Bldg 25A	Wending
Wednesday	13:00	14:00	Lecture Theatre 3, CBE Bldg 26C	Wending
Wednesday	14:00	15:00	Tutorial Room 5, CBE Bldg 26C	Wending
Wednesday	15:00	16:00	Tutorial Room 3, HW Arndt Bldg 25A	Wending
Wednesday	16:00	17:00	Tutorial Room 2, HW Arndt Bldg 25A	Fajar
Thursday	16:00	17:00	Tutorial Room 2, HW Arndt Bldg 25A	Fajar

Assessment

Quizzes, 3% each

• Quick 20 minutes computerized test

• Has to be competed during a given date

• Each student has one attempt at each quiz

• Each student will have their own questions

• Access each quiz on the course Wattle page

• Multiple choice, true/false and short answer questions

• Automatic grading, immediate feedback

• Each quiz will cover the topics of the two preceding lectures

• Every student must attempt each quiz in order to pass the course

Computerized quizzes are located at the course Wattle page

Midterm exam, 35%

Note

The midterm is scheduled at 18:30 to 19:45 (1 hour + 15 min reading time) on Monday, April 15 in Melville Hall

• Classic close book on-campus

• Invigilated

• 1-hour exam

• Covers the material from the first half of the semester

• Exam questions will requires simple proofs and derivations

• Small final exam

• More information will be provided in Week 4, with practice examples discussed prior to the exam

• Will be held during week 6 or 7

Final exam, 50%

• Classic close book on-campus

• Invigilated

• 3-hour exam

• Covers the material from the whole semester!

• Exam questions will requires simple proofs and derivations

• Large midterm exam

• More information will be provided in Week 10, with practice examples discussed prior to the exam

• Will be held during the examination period May 30 to June 16

Reading materials

1. Primary reference: lecture slides

2. A first course in Optimization Theory
   by Rangarajan K. Sundaram

[Sundaram, 1996]

2. Mathematics for Economists
   by Carl P. Simon and Lawrence Blume

[Simon and Blume, 1994]

3. Additional references will be provided in the lecture notes if needed.

Previous versions

This page contains the current lecture notes for the course.
An archive of lectures notes from previous years can be found at https://fedor.iskh.me/teaching