COURSE INFORMATION Course Title: MATHEMATICAL ECONOMICS

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
ECO 405	B	1	3	0	0	3	6

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Eglantina Hysa
Second Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Elective
Classroom and Meeting Time:
Course Description:	-
Course Objectives:	This course will be an overview of general mathematical methods which application in solving finance problems. The course will be focus in some well-known methods as optimization, some statistical e probability methods as Marcov chain, Monte-Carlo theory, game theory, queuing models and some introduction methods of market efficiency and options. International trade and international monetary economics theory and policy. The purpose is to help students understand the basics of mathematical methods and fields of their applications in economy. Topics are selected carefully to comprehensive ones. Specific concepts as arbitrage, delta hedging and Black- Scholes formula and martingales are news and in international programs of mathematical finance.

COURSE OUTLINE

Week	Topics
1	The transportion model and its variants
2	Net models.; Terminology of nets ; Shorterst path problem
3	The network representative of the projects
4	Game theory; the formulationof the two-person game.
5	The analysis of the Decision
6	Markov chains
7	Analysis of absorbing states.
8	Midterm
9	Model of queuing Systems
10	Economic analysis of the queuing.
11	Risk. Market efficiency. The use of opsions.
12	Trees and option princing.
13	Practicalities. Introduction.
14	Black Schols formula.

Prerequisite(s):
Textbook:	Taha, H., Operations research, an introduction, Pearson, Prentice Hall 2007
Other References:	1. Anderson, S.W. Quantitative Methods for Business, 2006 2. Bharucha - Reid, A.T. Elements of the Theory of Markov Processes and their Applications, 1997. 3. Paul Wilmott, Introduces Quantitative Finance, second edition. John Wiley & Sons, Ltd, 2004
Laboratory Work:
Computer Usage:
Others:	No

COURSE LEARNING OUTCOMES

1	Application of methods of mathematics to better understand the quantitative problems in management the economic problems.
2	Knowledge of main methods of mathematics in modern economy management.
3	Knowledge of the role and importance of mathematical methods and its impact in economic problems
4	Knowledge of specific concepts decision, optimization, option, hedging

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Master of Science in Economics Program
1	The students are gained the ability to look at the problems of daily life from a broader perspective. They gain the needed skills not only to understand economic problems in economics but also to construct a model and defend in meaningful way.	5
2	They have knowledge about the microeconomics.	3
3	They have knowledge about the macroeconomics.	5
4	They have knowledge about the international economics and finance.	5
5	They have ability to use mathematical and statistical methods in economics.	2
6	They know how to use computer programs in both daily office usage and statistical data evaluations in public and private sector.
7	They have necessary economics skills that needed in private and public sector.	4
8	They are intended to be specialist in one of departmental fields that they choose from the list of general economics, growth and development, labor economics and labor market, environmental economics, agricultural economics, health economics, education economics and human development, political economics, international economics, monetary economics, finance economics, public finance, international financial markets and institutions, banking and central banking, international trade and banking, monetary economics and banking,	5
9	They have ability to utilize fundamental economic theories and tools to solve economic problems in economics.	5
10	They are aware of the fact that economics is a social science and they respect the social perspectives and social values of the society’s ethics.	4

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	35
Project	1	10
Final Exam	1	45
Attendance		10
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	4	64
Hours for off-the-classroom study (Pre-study, practice)	16	3	48
Mid-terms	1	10	10
Assignments			0
Final examination	1	15	15
Other	1	13	13
Total Work Load:			150
Total Work Load/25(h):			6
ECTS Credit of the Course:			6