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Quantitative Methods in Economics

Course developer

Course abstract

Students study system modelling and analysis methods of optimal decision making in economics, acquire practical skills in mathematical modelling with MS Excel optimization tool Solver and project management software MS Office Project and The Analytic Hierarchy Process.

Learning outcomes and their assessment

After completing the course student will have:Knowledge about some mathematical methods in management science with computer and resources optimization in the economics.Skills – build the quantitative model for study the economical systems with GLP, MS Office Excel and MS Office Project as well as decision making withAnalyticHierarchy Process; definetheoptimal using of resources in economics.Competence – knowledge and ability for optimal and environmental safety decision planning and making process in economics with information technologies.

Course Content(Calendar)

1 Introduction - quantitative methods of analysis for the exploration of economic systems.
2 Decision-making in conditions of certainty and uncertainty. Criteria for the management decisions.
3 The Analytic Hierarchy Process for solving economic problems.
4 Mathematical programming. Linear programming (LP).
5 Postoptimality analysis. Dual LP task and its economic interpretation.
6 Graphic resolutions of linear programming tasks, solutions and analysis.
7 LP task resolution and analysis capabilities with the spreadsheet application's MS Excel optimization tool Solver.
8 Integer Linear Programming to address choices, deployments, etc.
9 Transportation models. Dual task and interpretations.
10 Cargo handling and delivery task. Assignment and production logistics tasks.
11 Composing optimal mixtures.
12 Optimal cutting or loading tasks.
13 Nonlinear programming tasks.
14 CPM and PERT methods to create network models in project or process planning.
15 Optimization in project networks with Solver.
16 Introduction in the project or process planning with application MS Office Project.

Requirements for awarding credit points

Successfully passed the exam or at least 40% of the course total score.

Description of the organization and tasks of students’ independent work

Tasks for the independent work are included in e-studies (http://estudijas.llu.lv).
There is one independent home work (in writing) in the semester.

Criteria for Evaluating Learning Outcomes

The exam cumulative assessment depends on two tests (40 + 20 = 60%), homework (20%) and the theory exam (20%).

Compulsory reading

1. Koroļova J. E-studiju kursa „Kvantitatīvās metodes ekonomikā” materiāli Moodle vidē. 2011. Pieejams: www.estudijas.llu.lv [skatīts 2019. g. 3. septembrī]
2. Frolova L. Matemātiskā modelēšana ekonomikā un menedžmentā. Rīga: Izglītības soļi, 2005. 438 lpp.
3. Moore J.H., Weatherford L.R. Decision modeling with Microsoft Excel. Prentice Hall, 2001. p. 1020.
4. Мур Дж., Уэдерфорд Л. Экономическое моделирование в MS Excel, Москва: Prentice Hall, 2004. 1024 с.

Further reading

1. Peļņa M., Gulbe M. Optimizācijas uzdevumi ekonomikā. Rīga: Datorzinību centrs, 2003.160 lpp.
2. Praude V., Beļcikovs J. Loģistika. Rīga: Vaidelote, 2003. 541 lpp.

Periodicals and other sources

1. LU Raksti-ekonomika (piem. http://www.lu.lv/apgads/izdevumi/lu-raksti/766-sejums/) [skatīts 2011. g. 28. novembrī].
2. Operations Research. Pieejams: http://or.journal.informs.org/ [skatīts: 3.09.2019]. Operations Research, ISSN 0030-364X.

Notes

General study course for Bachelor’s study programme “Economics”