# ECONOMIC ANALYSIS WITH MATRICES - 2021/2

Module code: ECO2048

## Module Overview

The module provides an introduction to linear algebra and considers a variety of applications of matrices of relevance to economics and finance, using computational methods now standard in the profession.

### Module provider

Economics

RISPOLI Luciano (Economics)

### Module cap (Maximum number of students): N/A

Workshop Hours: 11

Independent Learning Hours: 96

Lecture Hours: 11

Laboratory Hours: 10

Guided Learning: 11

Captured Content: 11

Semester 1

None

## Module content

Indicative content includes:

• Matrix algebra: vectors and matrices; matrix operations: addition, subtraction, multiplication, inversion; notation, Solution to a set of linear equations

• Representation of simple economic models in matrix form

• Fetching economic data through MATLAB

• OLS model in matrix form

• IS-LM model solution in matrix form

• Code Debugging

## Assessment pattern

Assessment type Unit of assessment Weighting
Online Scheduled Summative Class Test ONLINE (OPEN BOOK) TEST WITHIN 24HR WINDOW (45 MINUTES) 30
Coursework COURSEWORK - GROUP PROJECT 70

## Alternative Assessment

If the group project is failed or not submitted, a shorter individual version should be submitted in the resit period.

## Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate

Their understanding of basic matrix algebra, its use in standard software packages (i.e. MATLAB) and some selected but varied applications to real-world socio-economic themes.

Thus the summative assessment for this module consists of:

• 10 Individual coursework assignments,   (worth 30% of the final mark). Each question is designed to test student’s knowledge, understanding and application of key concepts and techniques introduced in the module.

• A final group project which allows students to analyse a topic in depth by using techniques and concepts assimilated during the module (submission deadline in January, worth 70% of the final mark). Each project will consist of a Matlab code, a written report and an assessment of individual performances in the group. The assessment is designed to evaluate the skills in Matlab progamming, the ability to gather, analyse and interpret information on a particular topic and to use this knowledge to produce a written report. It also assesses the ability to work in a group, and evaluate individual performances in their team.

Formative assessment and feedback

Students receive verbal feedback during lectures (in which multiple choice questions and real-world examples in economics are both attempted and discussed). Video tutorials will provide formative assessment and feedback on individual assignments and exercises. In these they receive guided explanations of structured exercises and individual guidance. Videos may also be used to deliver solutions of assignments, explaining concepts and procedures involved when the proposed solution code requires further clarifications. Computer lab feedback sessions deliver extensive formative assessment and feedback, possibly in small groups.

For the assignments, on top of video instructions and explanations, students will receive feedback on the discussion forums on Surreylearn.

## Module aims

• provide students with an appreciation of the variety of applications of simple matrix algebra in economics and finance.
• develop confidence in applying those methods with the use of standard software packages (i.e. MATLAB), while at the same time building a basic understanding of programming techniques.

## Learning outcomes

 Attributes Developed 001 Understand and be familiar with simple vector and matrix notation and basic matrix operations KC 002 Be able to solve a set of simultaneous linear equations KC 003 Be able to manipulate matrices using standard software packages KCPT 004 Understand some important applications of matrix algebra in economics and finance KC 005 Have a basic understanding of basic programming techniques KPT

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

## Methods of Teaching / Learning

The learning and teaching strategy is designed to:

• develop skills in both data analysis, oral and written presentation

• develop appreciation of the variety of applications of matrices in economics and finance

• develop understanding of the use of standard software packages (i.e. MATLAB) in the analysis of economic-financial data and models

• develop understanding of basic programming techniques

The learning and teaching methods include:

• 2 hour lecture per week x 11 weeks

• Guided computer video-tutorials with practical exercises

• 1 hour computer lab feedback session per week x 10 weeks

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.