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Math Course plan

The course 'Mathematical Economics' (Econ-3051) focuses on mathematical techniques for economic analysis, covering optimization, differential equations, and dynamic models. It aims to equip students with the skills to formulate and analyze economic problems using mathematical methods. Assessment includes assignments, tests, and a final exam, with a total of 3 credit hours and a prerequisite of Econ 2012.

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3 views

Math Course plan

The course 'Mathematical Economics' (Econ-3051) focuses on mathematical techniques for economic analysis, covering optimization, differential equations, and dynamic models. It aims to equip students with the skills to formulate and analyze economic problems using mathematical methods. Assessment includes assignments, tests, and a final exam, with a total of 3 credit hours and a prerequisite of Econ 2012.

Uploaded by

yodahekahsay19
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Course Title: Mathematical Economics

Course Code: Econ-3051

Credit Hours: 3

ECTS: 5

Pre-requisite: Econ 2012

Course description

This Course introduces and discusses mathematical techniques used in economic analysis. The
Course covers topics in optimization in both static and dynamic settings. It equips students with
the ability to analyze simple economic models of constrained optimization and interpret various
mathematical parameters in an economically meaningful fashion. The Course also covers the
concept of the Kuhn–tucker theorems and introduces difference and differential equations with
their respective applications to solve the real and practical problems in the economy. Students
will also be able to analyze both linear and nonlinear dynamic economic models, to find steady
states and discuss stability properties.

Course Learning Aims

The Course aims to provide an insight into the importance of mathematical methods in
economics. It aims to introduce the basic mathematical skills required by economists and show
how a range of mathematical techniques may be applied to economic modeling and analysis.

Learning Outcomes

On successful completion of this module, students will be able to:

 Make use of the mathematical approach in formulating and analyzing economic


problems in both dynamic and static settings;

 Interpret mathematical formulations of economic problems; solve a range of


mathematically formulated economics problems;

 Derive and draw economic insights from solutions to mathematically formulated


economic models.
Course contents

Lecture Conceptual Focus Reading


hours
Chapter One: Derivatives in Use Chiang (1984)
1.1. Univariate Calculus chapters 7,8,9,10,11
 Increasing and decreasing functions Dowling (1980)
 Concavity and convexity chapters 3,4,5,9
 Linear approximations
12 hours
 Polynomial approximations
 Estimation of functions (Maclaurin and Taylor series)
 Intermediate value theorem, Newton method
1.2. Multivariate Calculus
 Homogeneous functions and Euler's theorem
 Total differentials and implicit differentiation
Chapter Two: Constrained Optimization Chiang (1984)
2.1. One variable constrained optimization with non-negativity chapters 12,21
constraint Dowling (1980)
9 hours 2.2. Two variables problems with equality constrains chapters 6,13
2.3. Inequality constraints and the theorem of Kuhn-Tucker
2.4. The General Case: Mixed constraint
2.5. Necessary and sufficient condition for optimization
Chapter Three: Comparative Static Analysis Chiang (1984)
3.1. The nature of comparative static analysis chapters 7,8
3.2. Differentiating systems of equations Dowling (1980)
6 hours
3.3. The jacobian and hessian determinants chapter 13
3.4. Comparative static of general function models
3.5. Limitation of comparative static analysis
6 hours Chapter Four: Differential Equations Chiang (1984)
4.1. Definition and type of differential equations chapters 14, 15
4.2. Solution of a differential equation Dowling (1980)
4.3. First order linear differential equations chapter 16
4.4. Exact differential equations
4.5. Second order linear differential equations
4.6. Economic applications of differential equations
Chapter Five: Difference Equation Chiang (1984)
5.1. Definitions and concepts chapters 16 , 17
6 hours 5.2. First order difference equation Dowling (1980)
5.3. Second order difference equations chapters 17, 18
5.4. Economic applications
Chapter Six: Dynamic Optimization Dowling (1980)
6.1. Discrete time optimization chapter 21
8 hours 6.2. Continuous time optimization
6.3. Optimal control theory
6.4. Economic applications

Course Delivery Methods


The course is delivered through the following methods: Lecture Method, In-class problem
solving, Group Work, Assignment. The delivery method shall be student-centered. Students are
highly expected to participate in class works and discussions.
Assessment criteria and grading system
Student evaluation in this Courseconsist both formative and summative assessments including
tests and final exam. Marks will be allocated according to the following grading schedule.

Assessment method Weight


Assignment 30%
Test 20%
Final Exam 50%
Total 100%

Reading Materials

 Allen, R.G.D. (1982), Mathematical Analysis for Economists, Macmillan, London.

 Chiang, Alpha C. (1984), Fundamental Methods of Mathematical Economics, McGraw-


Hill.
 Dowling, E.T. (1980), Mathematics for Economists (Schaum's Outline Series), McGraw-
Hill

 Klein, M. (1998), Mathematical Methods for Economics, Addison-Wisley.

 Hoy, M., J.Livernois, C.McKenna, R.Rees and T.Stengos (2006). Mathematics for
Economics, 2nd Edition , Eastern Economy Edition

 Sydsaeter, K. & Hammond, P. (2002), Essential Mathematics for economic analysis,


prentice–Hall.

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