ECON4830 – Economics dynamics and Uncertainty
Course content
The class on Economic Dynamics and Uncertainty trains the student in dynamic economic thinking, intertemporal trade-offs, optimal and behavioral aspects of choice, and responses to uncertainty and learning. It draws from a variety of economic fields such as macroeconomics, asset pricing, behavioral economics, climate change economics, decision theory, and more. The overarching theme is the exploration, interpretation, and understanding of dynamic trade-offs in economic reasoning. Methodologically, the class starts with basic reasoning in two period models and moves on to dynamic programming in discrete and continuous time. The class applies similar methods and trade-offs to different economic settings in order to train the student in the application of concepts and methods outside of a narrow field or topical focus. The class pays particular attention to the fact that the future is uncertain. It explores implications of risk aversion, prudence, and Bayesian learning for decision making and economic dynamics. The seminars will make occasional use of Matlab. Students can use alternative programming language like Python or Julia if they do not require support.
Learning outcome
Knowledge:
You should understand
- intertemporal trade-offs
- the interactive dynamics of marginal valuation and good provision
- how uncertainty affects dynamics and optimal decisions
- Dynamic implications of learning and behavioral responses
- Dynamic implications of policies and implications of dynamics for policy
Skills:
You should be able to
- set up dynamic economic models
- use dynamic programming to evaluate intertemporal trade-offs
- interpret intertemporal optimality conditions
Competence:
You should
- obtain experience in thinking dynamically
- be able to read and understand reports and journal articles that make use of the concepts and methods introduced in this course
Admission to the course
Students admitted to study programmes at UiO must each semester register which courses and exams they wish to sign up for in Studentweb.
Students not admitted to the Master’s programme in Economics or the Master’s programme in Economic Theory and Econometrics (Samfunns?konomisk analyse), can apply for admission to one of our study programmes, or apply for guest student status.
Formal prerequisite knowledge
You must fulfill one of these prerequisites:
- Bachelor`s degree in Economics, or equivalent.
- ECON3120 – Mathematics 2: Calculus and Linear Algebra / ECON4120 – Mathematics 2: Calculus and Linear Algebra, or equivalent.
Teaching
Lectures and seminars.
The course responsible can at the beginning of the semester update the syllabus list by changing no more than three articles, though in a way that it will not change the overall scope or thematic content of the course.
The syllabus also includes any lecture notes that will be made available for the students in Canvas.
Examination
A 3-hour written school exam.
Exam papers with comments from examiner
Examination support material
Usage of a dictionary during the examination is allowed, subject to prior inspection by SV-info.?See guidelines for further details.
Language of examination
The examination text is given in English, and you submit your response in English.
Grading scale
Grades are awarded on a scale from A to F, where A is the best grade and F is a fail. Read more about the grading system.
Resit an examination
If you are sick or have another valid reason for not attending the regular exam, we offer a postponed exam later in the same semester.
See also our information about resitting an exam.
More about examinations at UiO
- Use of sources and citations
- Special exam arrangements due to individual needs
- Withdrawal from an exam
- Illness at exams / postponed exams
- Explanation of grades and appeals
- Resitting an exam
- Cheating/attempted cheating
You will find further guides and resources at the web page on examinations at UiO.