Modern economic theory is based on mathematical models. Thus, a thorough understanding of the economic content of such models is not possible without a clear understanding of optimisation techniques that underpin the modeling. Course introduces students to a range of optimisation concepts and techniques for economics and financial economics that form the basis of advanced economic theory courses. The introduced concepts and techniques will be derived from basic principles and assumptions as thoroughly as possible, and will be illustrated using standard applications from economics.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Understand the mathematical methods that are most widely used in economics, both from a formal, abstract perspective, and an intuitive perspective.
2. Know how to read, understand, and construct mathematical proofs, and appreciate their role in the derivation of mathematical concepts and structures.
3. Apply mathematical methods and techniques that are formulated in abstract settings to concrete economic applications.

Research-Led Teaching

Optimization techniques play a central role in modern economic analysis. Using the techniques to solve real-world problems require model building skills. The course emphasizes model building in various contexts: how to convert a real-world problem to a mathematical problem and then solve it.

Examination Material or equipment

Open book exam; calculators and computational softwares are allowed.

Required Resources

Sundaram, R. K. (1996). A first course in optimization theory. Cambridge university press. (eBook via ANU Library)

Recommended Resources

1 "Mathematics for Economics and Finance", by Michael Harrison and Patrick Waldron (eBook via ANU Library)

2 AN EXPLANATION OF CONSTRAINED OPTIMIZATION FOR ECONOMIST, PETER B. MORGAN

https://library.anu.edu.au/record=b6990320

Classic Textbooks

3 Carter, M. (2001): Foundations of mathematical economics. MIT press.

4 Simon, C. P., and L. Blume (1994): Mathematics for economists. Norton & Company,

Staff Feedback

The lecturer will pay close attention to students’ learning. Following interactions with students during lectures, tutorials, and consultations, the lecturer will provide to students, individually or as a group, timely feedback that improve their learning experience.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

Your raw marks are computed using the weights on the assessment shown above. Your final mark may reflect some scaling from the raw marks; any scaling would preserve the rank of students.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Euclidian Space: Basic Structure
2	Cauchy Criterion and monotone Sequences
3	convex, open, closed, compact sets
4	Primer on Differentiability
5	Convex Structures part II	Assignment 1
6	Separation of Sets and Hyperplanes
7	Optimization in R^n
8	Unconstrained Optimization
9	Equality constraints
10	Inequality constraints	Assignment 2
11	Convex Structures part II
12	Maximum Theorem
13	Examination period	Final Exam

Tutorial Registration

Face-to-face tutorial will be scheduled if there are sufficient on-campus enrolments. Live Zoom tutorials will be available for remote students. Registration is via Wattle in Week 0.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Assignment 1	20 %	22/03/2022	31/03/2022	1,2,3
Assignment 2	20 %	10/05/2022	19/05/2022	1,2,3
Online final exam	60 %	*	*	1,2,3

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the Academic Integrity . In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Lectures will be held available through echo. Face-to-face tutorials will be available if there are sufficient on-campus enrolments. Live zoom tutorials will be available for remote students.

Examination(s)

Two assignments (each 20%) and one online final exam (60%).

Assessment Task 1

Assignment 1

weighing 20%.

Students solve problems using theory covered in the course, and the problems are designed to develop their analytical skills.

This will be scheduled in Week 5, covering material in Weeks 1 to 5. A PDF question sheet will become available at the scheduled starting time and written answers are to be submitted via Wattle. No invigilation software will be used.

Late submissions not permitted without extensions.

Assessment Task 2

Assignment 2

weighing 20%.

Students solve problems using theory covered in the course, and the problems are designed to develop their analytical skills.

This will be scheduled sometime in Week 10, covering material in Weeks 6 to 10. A PDF question sheet will become available at the scheduled starting time and written answers are to be submitted via Wattle. No invigilation software will be used.

Late submissions not permitted without extensions.

Assessment Task 3

Online final exam

weighing 60%.

This will be scheduled during the exam period, covering material throughout the semester. This will be an online exam with a duration of 2 1/2 hours; more information will become available during Week 10. A PDF question sheet will become available at the scheduled starting time of the exam and written answers are to be submitted via Wattle. No invigilation software will be used.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.

The ANU commits to assisting all members of our community to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to be familiar with the academic integrity principle and Academic Misconduct Rule, uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with.

The Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Hardcopy Submission

N/A

Late Submission

• Late submission not permitted. If submission of assessment tasks without an extension after the due date is not permitted, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

Submissions will be marked using Turnitin. Comments will be added and marks given there.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students