ECON4830 – Economic dynamics and Uncertainty

Schedule, syllabus and examination date

Choose semester

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

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 (Samfunnsøkonomisk analyse), can apply for admission to one of our study programmes, or apply for guest student status.

Prerequisites

Formal prerequisite knowledge

You must fulfill one of these prerequisites:

Teaching

Lectures and seminars

Examination

Ordinarily, this course has a 3-hour written school exam.

For 2020 the following applies for the exam in ECON4830:

The examination will be a 5-hour home examination in Inspera. The home exam will be an open-book exam, where all written and printed resources as well as technical support is allowed. All submitted papers will be checked for plagiarism. You can find the date and time for the exam on the semester page.

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Exam papers with comments from examiner

Digital examination

The written examination is conducted in the digital examination system Inspera. You will need to familiarize yourself with the digital examination arrangements in Inspera.

Read more about written examinations using Inspera.

Examination support material

Students may use dictionaries at this exam. Dictionaries must be handed in before the examination. Please read regulations for dictionaries permitted at the examination.

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.

Explanations and appeals

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.

Withdrawal from an examination

It is possible to take the exam up to 3 times. If you withdraw from the exam after the deadline or during the exam, this will be counted as an examination attempt.

Special examination arrangements

Application form, deadline and requirements for special examination arrangements.

Evaluation

The course is subject to continuous evaluation. At regular intervals we also ask students to participate in a more comprehensive evaluation.

Facts about this course

Credits

10

Level

Master

Teaching

Every autumn

Examination

Every autumn

Teaching language

English