AGEC-6511 (Mathematical Economics)

Course Title:               MATHEMATICAL ECONOMICS              

Course Code:              AGEC-6511

Credit Hours:              2(2-0)

Instructor:                   Muazzam Sabir

Email:                         [email protected]

 

DESCRIPTION AND OBJECTIVES

This course concentrates on the mathematical methods that are required to understand current economics and to investigate economic models. Topics may include advanced matrix algebra, optimization with and without constraints, and dynamic optimization. After completing the course, students will be in a position to apply the knowledge of mathematical tools for formulation of economic model(s) and analyses.

INTENDED LEARNING OUTCOMES

The principal aim of this course is to extend student’s facility with those methods of mathematics needed to pursue economic analysis at a more advanced level. By the end of the course students will have extended their knowledge to include the technique of optimization under inequality constraints, the analysis of dynamic economic models, in particular differential and difference equations and dynamic optimization (optimal control theory), as well as correspondences and fixed point theorems used in general equilibrium analysis.

COURSE CONTENTS

The nature of mathematical economics, mathematical versus non-mathematical economics, mathematical economics versus econometrics, economic models. Review of Matrix Algebra and its application to Business and Economics. Review of Differentiation: Rules of differentiation, maxima/minima of functions, partial/total derivatives and their applications in Business and Economics. Integration: Integrals and their applications in Business and Economics. Optimization Problems.

READINGS
  1. Chiang, A. C. & Wainwright, K. (2004). Fundamental Methods of Mathematical Economics, 4th   Edition. New York: McGraw-Hill, Irwin.
  2. Silberberg, E. & Suen, W. (2001). The Structure of Economics: A Mathematical Analysis. 3rd  
  3. .  New York: McGraw-Hill, Irwin.
  4. Budnick, F. S. (1993). Applied Mathematics for Business, Economics and Social Sciences.

New York: McGraw-Hill, Inc.

  1. Syd Saeter, K & Hammond, P. (2012). Essential Mathematics for Economic Analysis, 3rd

Edition, Prentice Hall Publisher.

 

 

 

 

COURSE SCHEDULE

Week

Topics and Readings

Books with Page No.

1.

The nature of mathematical economics,

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.2-4

 

2.

mathematical versus non-mathematical economics and econometrics

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.2

 

3.

Mathematical economics versus econometrics

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.4

4.

Economic models

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.5-7

5.

Review of Matrix Algebra

 

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.48-70

6.

Matrix Algebra and its application to Business and Economics

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.107-111

 

7.

Review of Differentiation,

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.124-128

8.

Rules of differentiation

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.161-165

 

 

MID Term Exam

 

 

9.

 

maxima/minima of functions and their applications in Business and Economics

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.313-320

 

 

 

10.

maxima/minima of functions and their applications in Business and Economics (Continued)

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.313-320

11.

partial/total derivatives

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.179-189

12.

partial/total derivatives and their applications in Business and Economics

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.209-213

13.

Integration definite and indefinite

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.444-454

 

14.

Integrals and their applications in Business and Economics

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.464-470

 

15.

constraints, and dynamic optimization

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.222-235 & 347

 

16.

Optimization Problems

 

Chiang, A C. Fundamentals Method of Mathematical Economics. 4th Edition. Page No.219

 

Final Term Exam

 

 

ASSESSMENT CRITERIA

 

Sessional:                     8 (Class Attendance:3, Quiz:5)

Mid Term Test:           12

Final Term Test:         20

Course Material

Other Courses by Muazzam Sabir