Many optimization questions arise in economics and finance; An important example of this is when society chooses the optimum economic state (which we call the social choice problem). This course, called Optimization in Economics and Finance, expands and improves upon the usual optimization techniques. The models and methods presented in this course have broad interdisciplinary professional and academic application, such as economics, finance, and applied mathematics, including policy planning and optimal social choice, using optimal models for forecasting, market simulation, development planning, and sensitivity analysis.
Overview of optimization issues; optimization problems in finance and economics, profit maximization conditions, Economic Dynamics and Integral Calculus, Expected value calculation in stochastic models, Ito's lemma, Black-Scholes derivative pricing models, Excel applications (optimization in imperfectly competitive markets)