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Lecturer(s)
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Course content
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1. Linear and nonlinear systems, determinism and predictability 2. Examples of linear models in economics 3. Nonlinear models in economics 4. Pattern formation and emergent phenomena in economy 5. Self-organized criticality: The role of regulation in economy 6. Econophysics
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Learning activities and teaching methods
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Lecture, Dialogic Lecture (Discussion, Dialog, Brainstorming), Demonstration
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Learning outcomes
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The aim of the course to explain that the economy is a complex nonlinear system with many feedback and regulatory mechanisms. It is not possible to examine such a system by tools borrowed from linear equilibrium thermodynamics.
Understanding complexity and the ability to find and correct unjustified simplifications and misleading models in current economics.
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Prerequisites
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Interest in the subject, linear algebra, calculus, and basics of procedural programming.
KAG/LA1A and KMA/MA1
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Assessment methods and criteria
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Dialog, Seminar Work
Semester project and its presentation. Active participation.
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Recommended literature
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The Economist.
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Abergel, F., Aoyama, H., Chakrabarti, B.K., Chakraborti, A., Deo, N., Raina, D., Vodenska, I. (Eds.). (2017). Econophysics and Sociophysics: Recent Progress and Future Directions, [5]. New Economic Windows Series.
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Didier Sornette. (2004). Critical Phenomena in Natural Sciences, Chaos, Fractals, Self-organization and Disorder: Concepts and Tools, Second edition. Heidelberg.
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Mark Buchanan. (2013). What has econophysics ever done for us?. Nature.
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Rosario N. Mantegna, H. Eugene Stanley. (1999). An Introduction to Econophysics: Correlations and Complexity in Finance.
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