This course provides an introduction to decision making in economics, with an emphasis on using linear programming techniques for problem solution and analysis. Lectures and homeworks are used to provide insights into a wide range of decision models in applied economics, including production, inventory control, network and transportation problems. Students will become familiar with using Excel and GAMS to solve numerical models. The target audience is first year M.S. students.

INSTRUCTOR and OFFICE HOURS

Dr. Gerald Shively
629 Krannert Building
494-4218
shivelyg@purdue.edu .

Office hours: I am generally available throughout the day and maintain an "open door" policy regarding office hours. However, I have a number of commitments other than this course, so I may not always be in my office. I strongly recommend that you make an appointment to see me, either by contacting me after class, sending me an email message directly, or by contacting my secretary, Linda Klotz (phone: 494-4208, email lrklotz@purdue.edu) .

PURPOSE

This course has two main purposes, both of which focus on expanding students' analytical and thinking skills. The first goal is to introduce students to economic decision making and the use of formal models and algorithms in economics. Economics is useful for identifying problems, clarifying issues, identifying tradeoffs, and implementing cost-effective solutions to improve the performance of individuals, firms, and economic systems. This course will allow students to develop the skills necessary to formulate and solve economic problems. The second purpose of the course is to help students develop specific skills for setting up and solving numerical problems using computer software.

OBJECTIVES

1. Provide students with a basic understanding of economic decision making, model conceptualization and constuction, and solution algorithms.

PROCEDURE

This course follows a lecture format with homework assignments and an exam used to reinforce understanding of CONCEPTS and METHODS. Student participation in class discussion is expected. Information regarding the course, is available via the course home page at: http://www.agecon.purdue.edu/staff/shively/courses/agec552/index.htm

READINGS

Assigned readings will be supplemented at times by handouts. Reading assignments are indicated on the daily class schedule. Because of the large number of topics covered it is essential that the reading assignments be done on their assigned days.

TEXTS

One book will be used for the class. This is:

Computational Economics: Economic Modeling with Optimization Software, Gerald L.Thompson and Sten Thore, Scientific Press, 1992.

Unfortunately, this book is out of print. Used copies are sometimes available from on-line booksellers. Copies will be available for purchase at CopyMat, in the Purdue Village.

An optional book for the course is:

Linear Programming and Economic Analysis, Dorfman, Samuelson, and Solow.

This book is a bit dated, but it is still in print and may be useful for students who desire a deeper understanding of course topics. New and used copies of this book are widely availabe through on-line book sellers. The book is also on reserve in the Management and Economics Library.

A few readings will be assigned from the book Decision Making, Models and Algorithms by Saul Gass. This book is also on reserve.

HOMEWORKS

Five homework assignments will be assigned during the semester. These assignments will be made available in class or online via the course homepage. Due dates are indicated on the course schedule. The purpose of these homework assignments is to help students master understanding of key concepts and methods. Several assignments will require use of a computer.

Each homework has a value of 20 points. Homeworks can be submitted late, with or without an excuse, but a penalty of one letter-grade will be subtracted for each calendar day the assignment is late.

CLASS PROJECT

A final class project and presentation will be required. Details will be provided during class.

EXAMINATIONS

One exam will be given, immediately prior to Thanksgiving break. The exam will be designed to test understanding of concepts and application of tools of economic analysis. The exam will emphasize problem solving.

There will not be a final exam.

GRADING POLICY

The final course grade will be computed from points earned from homeworks, the exam, and the final project, as follows:

Homework assignments (5 @ 20 points)	100
Exam	100
Final project	100
Total	300

Grades will be assigned according to the following scale:

270 - 300	A
240 - 269	B
210 - 239	C
180 - 209	D
0 - 179	F

SPECIAL NEEDS

If you have a disability that requires academic adjustments, please make an appointment with me to discuss your needs. Please note that university policy requires all students with disabilities to be registered with Adaptive Programs in the Office of the Dean of Students before classroom accomodations can be provided.

ACADEMIC INTEGRITY

University policy on academic dishonesty is clear: academic dishonesty in any form is strictly prohibited. Anyone found to be cheating or helping someone else cheat will be referred directly to the Dean of Students for disciplinary action. Penalties are severe and may include dismissal from the University. The risks associated with cheating far outweigh the perceived benefits. Academic dishonesty includes citing someone else's work as your own, using "cheat sheets" or sharing your answers with someone else. If you are unsure whether your planned action constitutes academic dishonesty, seek clarification from your instructor. Other information regarding your rights and responsibilities as a student are contained in the university's code of conduct .