The focus of the Optimization Modeling of Economic Systems course will be on the theoretical and practical aspects of mathematical programming and on the formulation of mathematical models with a primary focus on optimization models. This is a hands-on model building course.
Topics will include a review of optimality conditions and convex analysis for nonlinear programming and a variety of approaches to modeling. The modeling section of the course will include models of the consumer, the producer and the sector. Non-parametric efficiency testing will be included.
Students will Learn:
- To use the General Algebraic Modeling System (GAMS) computer language effectively to formulate and solve mathematical models of economic systems
- How to avoid implementation pitfalls and how to anticipate the qualitative behavior of models before they have been built
Module 1 – Introduction of Mathematical Programming in Applied Economics and GAMS
- Learning Objective: Assess mathematical programming in applied economics and how it is used, analyze the GAMS language, and generate the code and output for the Transportation problem.
Module 2 – Overview of the GAMS Language via Examples
- Learning Objective: Explore the background, basics (object types, structure, naming convention, etc.), sets, and parameters of the GAMS language.
Module 3 – More Examples of the GAMS Language
- Learning Objective: Evaluate GAMS parameters and manipulation and conditional assignments, define variables and equations, model and solve statements, compute principle model types and sets, and refine the GAMS language.
Module 4 – Mathematical Fundamentals
- Learning Objective: Separately evaluate convexity of sets and convexity of functions, and demonstrate univariate functions, and multivariate functions.
Module 5 – Convex Programming Problems
- Learning Objective: Utilize the building blocks for economic models and interpret Lagrange Multipliers.
- Professionals interested in applied economic analysis that have completed an undergraduate degree with a strong mathematics background